As of 2:15 PM, Coal India shares were trading close to the day’s high at ₹456, significantly outperforming the benchmark Nifty 50 index, which fell 1.60 per cent as the West Asia conflict entered its fifth week.
Today’s surge in Coal India shares coincides with the listing of its arm, Central Mine Planning & Design Institute Ltd (CMPDIL). CMPDIL shares listed with a discount of nearly 7 per cent at ₹160 on the NSE against the issue price of ₹172.
CMPDIL IPO was entirely an OFS of 10.71 crore shares, worth ₹1,842 crore, by Coal India. CMPDIL was incorporated in 1975 as a wholly-owned subsidiary of Coal India.
Meanwhile, brokerage firm Geojit Investments upgraded its rating on Coal India to ‘Buy’ and revised the target price to ₹506, based on 6.3x FY28E EV/EBITDA. The target price implies an upside of 11 per cent from the current market price (CMP).
Analysts at Geojit said that Coal India reported a subdued set of numbers in Q3FY26, with earnings impacted by weaker volumes, lower realisations, and rising costs. However, they expect a sharp uptick in coal demand in the coming months due to early summer and rising power consumption.
Additionally, elevated global energy prices amid geopolitical tensions are likely to push industries towards domestic coal, supporting pricing and volumes.
“Geopolitical tensions in Iran have surged global energy prices, positioning Coal India to benefit from higher e-auction realisations as industries pivot from costly imports to domestic coal,” Geojit said.
Coal India reported a 15.8 per cent Y-o-Y decline in consolidated net profit at ₹7,157.45 crore in the third quarter, impacted by lower sales and higher expenses. The PSU’s sales declined to ₹30,818.17 crore in Q3 from ₹32,358.98 crore in the year-ago period.
In the first nine months of FY26 (April to December), Coal India produced 529.19 million tonnes (MT), lower than the 543.36 MT produced in the same period of the previous fiscal.
Geojit also noted that Coal India is advancing its diversification strategy into renewables and critical minerals, alongside downstream integration initiatives and stronger digital mine management practices.
Coal India’s “investments in clean energy projects, mineral diversification and logistics optimisation could support medium-term sustainability while maintaining coal’s strategic relevance,” analysts said.
Coal India, which accounts for 80 per cent of domestic coal output, enjoys Maharatna status and falls under the administrative control of the Ministry of Coal. It is also the world’s largest coal producer. ======================== Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.
