Coal India Limited (CIL), the country's largest coal producer, has announced its financial results for the first quarter of fiscal year 2025-26, revealing a decline in profit despite declaring an interim dividend.

Financial Performance

CIL reported a consolidated net profit of ₹8,734.17 crore for the quarter ended June 30, 2025, marking a 20% decrease from ₹10,943.55 crore in the same period last year. The company's revenue from operations also saw a decline, falling by 4% to ₹35,842.19 crore compared to ₹37,503.87 crore in Q1 FY2025.

Operational Highlights

• Coal production decreased by 3% to 183.32 million tonnes (MT) from 189.28 MT in Q1 FY2025.
• Coal offtake (sales volume) dropped by 4% to 191.04 MT from 198.92 MT in the corresponding quarter of the previous year.
• Overburden removal, crucial for future coal production, decreased by 5% to 507.72 million cubic meters.

Segment Performance

The company's subsidiaries showed mixed results:

Dividend Declaration

The Board of Directors has declared a first interim dividend of ₹5.50 per equity share (55% on the face value of ₹10) for FY 2025-26. The record date for dividend eligibility is set for August 6, 2025, with payment to be completed by August 30, 2025.

Other Financial Indicators

• EBITDA margin on net sales stood at 41%, down from 47% in Q1 FY2025.
• The company's net worth increased by 8% to ₹107,508.00 crore as of June 30, 2025, compared to ₹99,105.00 crore on March 31, 2025.

Management Commentary

While the company did not provide specific management comments in the financial release, the decline in profit and revenue suggests challenges in the operating environment, possibly due to reduced demand or pricing pressures.

Future Outlook

Coal India continues to focus on its core mining operations while also diversifying into related sectors. The company signed an MoU with Hindustan Copper Ltd on June 30, 2025, to collaborate in the copper and critical minerals sectors. Additionally, CIL is expanding into renewable energy, having signed an MoU on May 5, 2025, with UPRVUNL for setting up a 500 MW solar power project in Uttar Pradesh.

As Coal India navigates through the evolving energy landscape, its efforts to diversify and invest in sustainable energy projects may play a crucial role in its future performance and strategic positioning.

Coal India Limited (CIL), the state-owned coal mining behemoth, reported a 20% year-on-year decline in consolidated net profit for the first quarter. Despite the profit dip, the company has declared an interim dividend of Rs 5.50 per share.

Financial Performance

For the quarter ended June 30, Coal India's consolidated net profit stood at Rs 8,743.38 crore, down from Rs 10,959.47 crore in the same period last year. The company's revenue from operations also saw a decrease, falling by 4.4% to Rs 35,842.19 crore compared to the previous year. Net sales declined 4% to Rs 31,880.00 crore from Rs 33,170.00 crore.

Key Financial Metrics

Operational Performance

The company's operational performance also showed signs of strain:

Dividend Declaration

Despite the profit decline, Coal India's Board of Directors has declared a first interim dividend of Rs 5.50 per equity share (55% on face value of Rs 10). The record date for dividend eligibility is set for August 6, with payment to be completed by August 30.

Inventory Changes

Coal inventory reduced by 8.22 million tonnes compared to March but increased by 19.42 million tonnes compared to June of the previous year.

Major Operational Developments

1. Signed an MoU with Hindustan Copper for collaboration in copper and critical minerals sectors.
2. Became preferred bidder for Oranga Revatipur Graphite and Vanadium Block.
3. Incorporated a new renewable energy subsidiary CIL Rajasthan Akshay Urja Limited with 74% stake.
4. Started operations at a new mine Kotre-Basant Pur with 5 MTY capacity.
5. Signed an MoU for 500 MW solar power project in Uttar Pradesh.

Challenges and Outlook

The decline in profit can be attributed to various factors, including:

1. Reduced coal offtake
2. Increased operational costs
3. Changes in inventory levels

As Coal India navigates through these challenges, its focus on diversification and operational efficiency will be crucial for future growth and profitability.

About Coal India Limited

Coal India Limited is the world's largest coal producer and plays a crucial role in India's energy sector. The company operates through its subsidiaries across several states in India, contributing significantly to the country's coal production and energy security.