Coal India Limited (CIL), the state-owned coal mining behemoth, has announced its second interim dividend for the financial year 2025-26, even as it reported a mixed bag of financial results for the second quarter ended September 30, 2025.

Dividend Declaration

The Board of Directors of Coal India, in its meeting held on October 29, 2025, declared a second interim dividend of Rs 10.25 per equity share with a face value of Rs 10 each. This represents a dividend payout of 102.50% of the face value. The company has set Tuesday, November 4, 2025, as the "Record Date" for determining shareholder eligibility for this dividend payment, which is scheduled to be disbursed by November 28, 2025.

Q2 Financial Performance

For the quarter ended September 30, 2025, Coal India reported the following key financial metrics:

While Coal India's revenue of Rs 302 billion slightly exceeded analysts' estimates of Rs 295.87 billion, it still represented a marginal decline of 1.53% compared to the same period last year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a more significant drop, falling 22.09% year-over-year to Rs 67.16 billion, missing the estimated Rs 78.27 billion.

The EBITDA margin contracted by 584 basis points, from 28.09% in Q2 FY2025 to 22.25% in the current quarter, falling short of the expected 26.45%.

Operational Highlights

Although specific operational details were not provided in the given data, Coal India's performance is often influenced by factors such as production volumes, offtake, and global coal prices. The company's ability to meet power sector demand and its e-auction sales typically play crucial roles in its financial outcomes.

Looking Ahead

While the dividend announcement may be welcomed by shareholders, the mixed financial results suggest that Coal India faces challenges in maintaining its profit margins. The company's performance in the coming quarters will likely depend on its ability to optimize production costs, improve operational efficiencies, and navigate the evolving energy landscape as India balances its coal dependency with growing environmental concerns.

Investors and industry observers will be keenly watching how Coal India adapts to these challenges while maintaining its critical role in India's energy security.

Coal India , the country's largest coal producer, has announced its financial results for the second quarter, revealing a significant decline in net profit that fell short of analyst expectations.

Q2 Results

Coal India reported a consolidated net profit of 43.5 billion rupees for Q2, down from 62.9 billion rupees in the same quarter last year. This figure missed analyst estimates, which had projected a net profit of 55.44 billion rupees.

Factors Influencing Performance

Several factors likely contributed to Coal India's subdued performance in Q2:

1. Weak Power Demand: A slowdown in thermal power generation led to reduced demand for coal.
2. Lower Volumes: The company's production reportedly declined by 4% year-on-year, with dispatches falling by 2%.
3. Elevated Inventory Levels: High stock levels may have impacted sales and pricing.
4. Soft E-Auction Premiums: Analysts had noted that e-auction premiums were softer, potentially affecting revenue.

Market Context

Prior to the results announcement, analysts had anticipated a muted performance for Coal India in Q2, primarily due to lower volumes, reduced power demand, and high inventory levels. The actual results seem to have confirmed these concerns, with the net profit falling even below the conservative estimates.

Brokerage Outlook

Multiple brokerages had issued varied ratings for Coal India, reflecting a cautious near-term outlook:

While the near-term outlook remains cautious due to the thermal power generation slowdown and soft e-auction premiums, analysts view the medium to long-term fundamentals as intact. This positive long-term view is supported by expectations of structural growth in domestic power demand and ongoing operational efficiency measures.

Looking Ahead

As Coal India navigates these challenging market conditions, investors and industry observers will be keen to see how the company plans to address the issues of reduced power demand and lower volumes. The focus will likely be on any strategies or initiatives announced by the management to improve performance in the coming quarters.

The company's ability to adapt to changing market dynamics and implement effective measures to boost production and sales will be crucial in determining its financial trajectory in the near to medium term.