Target: ₹506
CMP: ₹450.25
Coal India (CIL) has a total output of 781 million tonne (mt) in FY25. It aims to increase its coal production to 1 billion tonne by FY28-29.
Coal India’s consolidated revenue fell 5.2 per cent year on year to ₹34,924 crore in Q3FY26, owing to lower coal off-take volumes and softer e-auction realisations, partly offset by improved notified processes for FSA supplies.
PAT decreased 15.6 per cent to ₹7,166 crore, owing to a lower topline and a one-time provision for the pay scale upgradation of executive employees.
Coal India reported moderate Q3FY26 results, driven by softer operational stability, improved evacuation infrastructure, higher mechanisation and diversification into renewables and critical minerals, alongside downstream integration initiatives and stronger digital mine-management practices.
Continued investments in clean energy projects, mineral diversification and logistics optimisation could support medium-term sustainability while maintaining coal’s strategic relevance. Looking ahead, an intense early Summer is expected to accelerate power demand and drive a sharp recovery in coal offtake, offsetting the subdued performance seen earlier in the fiscal year. Geopolitical tensions in Iran have surged global energy prices, positioning CIL to benefit from higher e-auction realisations, as industries pivot from costly imports to domestic coal.
Therefore, we upgrade our rating on the stock to Buy, with a revised target price of ₹506, based on 6.3x FY28E EV/EBITDA.
Published on March 30, 2026
