Coal India Reports 20% YoY Decline in Q1FY26 Profit; Declares ₹5.50 Interim Dividend

Kolkata, July 31 (IST) – Coal India Ltd (NSE: COALINDIA) posted a consolidated net profit of ₹8,734.17 crore for the quarter ended June 30, 2025 (Q1FY26), marking a 20.19% decline from ₹10,943.55 crore reported in the same period last year. The board has also announced a first interim dividend of ₹5.50 per equity share, with August 6, 2025, set as the record date. The dip in profitability was driven by lower revenue and other income, coupled with an increase in employee and contractual expenses.

Consolidated financials for the quarter reflect a period of operational moderation amidst cost pressures.

Consolidated Financial Performance (₹ in crore)

In Q1 FY26, the company reported a subdued financial performance compared to the same period last year. Revenue from operations declined by 4.43% to ₹35,842.19 crore, while other income also fell by 14.26% to ₹1,615.86 crore. Consequently, total income stood at ₹37,458.05 crore, marking a 4.90% year-on-year decline.

Total expenses rose modestly by 2.24% to ₹25,893.12 crore, resulting in a 17.74% drop in profit before share of joint ventures, which came in at ₹11,564.93 crore. On a positive note, the company’s share in earnings from joint ventures surged 68.87%, rising from ₹121.06 crore to ₹204.22 crore.

Despite this, profit before tax fell 17.17% to ₹11,709.15 crore. While the overall tax rate declined by 10.29%, a significant increase in deferred tax expenses weighed on the bottom line. Net profit for the quarter slipped 20.19% year-on-year to ₹8,734.17 crore.

The results reflect a phase of financial consolidation, with operational resilience in select areas countered by broader pressures on revenue and profitability.

Other Comprehensive Income (OCI)

The company has a negative Other Comprehensive Income (OCI) in Q1FY26 of 331.31 crore. This has 443.97 crore revenue not reclassified to profit and loss, partially offset by a tax credit of 111.74 crore. The reclassifications to profit and loss are known to be 0.92 crore, allowing 8,402.86 crores to be the total comprehensive income.

Earnings & Equity

The company reported an Earnings Per Share (EPS) of ₹14.19 for Q1 FY26. The paid-up equity capital stood at ₹6,162.73 crore, while other equity, as on the close of FY25, was recorded at ₹92,942.19 crore.

Interim Dividend Declared

The company has declared an interim dividend of ₹5.50 per share, based on a face value of ₹10. The record date for eligibility is set as August 6, 2025, and the dividend will be disbursed on August 30, 2025.

Shareholders holding shares on or before August 6, 2025, will be eligible for the interim dividend payout.

Management View

“We’ve sustained operational resilience despite market fluctuations. The interim dividend reaffirms our confidence in long-term growth,” said P.M. Prasad, Chairman and Managing Director.

Company Overview

Coal India Limited (CIL) is a state-owned Maharatna company and the world’s largest coal producer, established in November 1975 to develop and manage India’s coal reserves and reduce reliance on coal imports. Headquartered in Kolkata, CIL operates across eight Indian states with numerous mining areas, underground, opencast, and mixed mines, while also managing supporting establishments like workshops and training institutes. It operates through subsidiaries including CCL, NCL, SECL, MCL, and CMPDIL. The company is listed on NSE and BSE and plays a pivotal role in meeting India’s energy requirements.

REF:https://nsearchives.nseindia.com/corporate/COALINDIA_31072025172613_acctresults.pdf

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