Coal India Stocks Rally 4.10% in Early Trade; Touch Rs 471 Per Share on Strong Q4 Results, Dividend Announcement

Mumbai, April 28: Shares of Coal India were trading amongst top gainers on the NSE today (Tuesday), and rallied up Rs 18.55 to Rs 471.05, 4.10% higher than its previous close of Rs 452.50.

The state-run miner opened at Rs 456.20 in the pre-opening trade and rallied sharply after the opening bell, hitting an intraday high of Rs 474.80 around 9: 45 am before consolidating in the Rs 469–471 range throughout the rest of the morning session on strong buying interest following better-than-expected quarterly results announced yesterday evening.

The Coal India stock rose 6.12% over the last week, vastly outperforming the Nifty 50 which declined by 1.68% over the same time frame. The stock rose gradually from Rs 443 on April 21 to Rs 444.30 on April 22, gaining pace to Rs 450.60 on April 23 before rising sharply to Rs 455.40 on April 24 and largely consolidating throughout the weekend session. One-month returns are in line at 5.66% compared to Nifty 50’s 5.89% rise, while year-to-date returns are at a healthy 17.43% compared to the benchmark’s decline of 7.58% so far this year.

The order book shows 60.81% quantity on the sell-side versus 39.19% quantity on the buy-side on a total traded quantity of over 27.63 lakh shares, hinting that the rally may consolidate a bit as traders book profits at higher levels. The bid prices were seen ranging between Rs 470.50 to Rs 470.70 while ask prices were tight between Rs 470.80 to Rs 471.05. This small order book spread indicates healthy market depth and the lack of a substantial sell-side overhang in the order book also indicates that the selling may not be aggressive near current levels, allowing the stock to consolidate here before resuming its next upward move.

Coal India’s Q4 Results Trigger Rally

Coal India reported results for the quarter ending March on Monday, sparking Tuesday’s strong rally:

Profit after Tax: Coal India reported a net profit of Rs 10,839 crore for Q4 FY26, a rise of 11.1% year-on-year that beat analyst estimates comfortably.

Revenue: The company’s revenue rose 5.8% year-on-year to Rs 46,490 crore in the March quarter on account of higher offtake volumes.

EBITDA: Earnings before interest, tax, depreciation and amortisation also rose 6.2% YoY to Rs 12,673 crore in Q4 FY26.

EBITDA Margin: EBITDA margin improved by 20 bps to 27.3%, suggesting that the company is still able to improve operational efficiencies despite a continued pressure on realisation.

Production: Coal production rose only 0.6% year-on-year to 239 million tonnes in Q4 but fell 1.7% year-on-year to 768.2 MT for the full-year.

Realisations Still Under Pressure: Realisation from operations fell 14.6% to Rs 1,571.8 per tonne on an annual basis, which could weigh on revenue growth in the medium-term as e-auction premiums continue to moderate.

Dividend: The miner declared a dividend of Rs 5.25 per equity share (payable on July 15), giving a payout ratio of 52.5% based on the face value of Rs 10 per equity share. This handsome dividend, along with soaring crude oil prices that increases Coal India’s rerailment potential makes CIL one of the highest yielding PSU stocks to own.

Sources:

• https://www.bseindia.com/stock-share-price/coal-india-ltd/coalindia/533278
• https://www.nseindia.com/get-quote/equity/COALINDIA/Coal-India-Limited