Coal India FY26 profit falls 12% on higher costs, flat revenue

Coal India Limited (CIL) reported a 12% year-on-year decline in consolidated net profit for FY 2025-26, at Rs 31,071 crore compared to Rs 35,450 crore in the previous fiscal. The decline was driven by a one-time provision for executive pay revision and higher state levies, even as revenue from operations remained largely unchanged at Rs 1,68,400 crore.

Total income rose marginally by 1% to Rs 1,79,676 crore, supported by a 19% increase in other income to Rs 11,276 crore. However, total expenditure grew by 5% to Rs 1,38,511 crore, affecting margins. Key cost pressures included a Rs 1,458 crore provision for executive pay scale revision and higher expenses linked to the Jharkhand Mineral-Bearing Land Cess.

On the operational side, coal production declined by 2% to 768.19 million tonnes (MT), against a target of 875.24 MT. Coal offtake also fell by 2% to 744.88 MT. Inventory levels increased significantly, with closing stock rising 21% year-on-year to 129.96 MT as of March 31, 2026.

The average coal realisation (excluding other charges) improved by 2.5% to Rs 2,221.43 per tonne, supported by better pricing under Fuel Supply Agreements (FSA). This was partly offset by weaker realisations from e-auction and washed coal segments.

Subsidiary performance remained uneven. Northern Coalfields Limited (NCL) and South Eastern Coalfields Limited (SECL) reported growth in profit before tax of 15% and 3%, respectively. In contrast, Central Coalfields Limited (CCL) and Western Coalfields Limited (WCL) saw profit before tax decline by 38% and 51%, respectively. Eastern Coalfields Limited (ECL) reported a pre-tax loss of Rs 1,257 crore.

In Q4 FY26, CIL reported a 12% increase in consolidated net profit to Rs 10,908 crore, compared to Rs 9,740 crore in Q4 FY25. Revenue from operations rose 6% to Rs 46,490 crore, while other income increased 30% to Rs 5,128 crore. Coal production during the quarter stood at 239 MT.

During the year, CIL progressed on diversification. It connected its 100 MW solar power plant in Patan to the grid and incorporated CIL Rajasthan Akshay Urja Limited as a renewable energy subsidiary. The company also secured the Kawalapur Rare Earth Element (REE) block in Maharashtra and signed a memorandum of understanding (MoU) with Hindustan Copper Ltd for cooperation in copper and critical minerals.

Corporate developments included the listing of subsidiaries BCCL and CMPDIL on stock exchanges and the receipt of its first dividend from its joint venture, HURL.