Coal India Q1 capex rises 16.64% to Rs 3,399 crore
Coal India Limited (CIL) incurred capital expenditure of Rs 3,399 crore in the first quarter of FY 2026-27, up 16.64% from Rs 2,914 crore in the corresponding period of the previous financial year, with spending concentrated on land acquisition, coal evacuation infrastructure and plant and machinery.
The Maharatna public sector undertaking exceeded its Q1 capex target of Rs 3,349 crore, achieving 101.5% of the planned expenditure. The quarterly spending represents 20.60% of CIL’s Rs 16,500 crore capital expenditure target for FY 2026-27.
CIL had incurred capital expenditure of Rs 19,607 crore during FY 2025-26, exceeding its annual target of Rs 16,000 crore.
Capital spending
Land acquisition and related rehabilitation and resettlement (R&R) activities accounted for the highest expenditure during the quarter at Rs 1,804 crore, constituting nearly one-fourth of the total capex.
CIL has set an annual capex target of Rs 4,173 crore for land acquisition in FY 2026-27, the highest allocation among its expenditure categories, reflecting the importance of securing land as a prerequisite for mining projects.
The company also continued investments in coal evacuation infrastructure, spending Rs 1,754 crore on railway sidings and rail corridors during the quarter. Another Rs 195 crore was spent on the construction of coal handling plants, silos, weighbridges and roads, taking cumulative expenditure on evacuation infrastructure to Rs 1,949 crore.
Capital expenditure on plant and machinery stood at Rs 819 crore. This covered procurement of Heavy Earth Moving Machinery, construction and expansion of washeries, and other equipment-related activities, accounting for nearly one-fourth of total capex.
Commenting on the expenditure, CIL Chairman B. Sairam said, “Expenditures on land acquisition, development of coal evacuation infrastructure, and plant & machinery constitute the major components of our capital expenditure. Together, these three broad heads accounted for over 75% of the total capex incurred during the first quarter. These strategic investments have laid a strong foundation for the company to achieve its production and supply targets for the ongoing fiscal.”
Diversification
As part of its diversification into clean energy, CIL spent Rs 278 crore on solar projects during the quarter. Capital expenditure on investments in joint ventures amounted to another Rs 207 crore, as the company expands its presence in renewable energy and allied businesses.
Financials
CIL reported a consolidated net profit of Rs 8,852.11 crore for the quarter, an increase of 0.6% year-on-year, aided by higher revenues.
Consolidated revenue from operations increased 8% year-on-year to Rs 46,254.80 crore.
