Coal India Q1 FY26 Results: PAT Falls ~20% to ₹8,734 Cr; Revenue Down ~4%, Dividend ₹5.50/Share Declared

Coal India, India’s largest state-owned coal miner, witnessed a nearly 20% year-on-year fall in consolidated net profit, reporting ₹8,734 crore in Q1 FY26, down from ₹10,944 crore in Q1 FY25. Revenue from operations declined ~4.4% to ₹35,842 crore. EBITDA declined 13% YoY, pulling down the margin to 34.9%, while coal production and offtake both eased, highlighting demand softness amid subdued power generation and price pressure.

📊 Q1 FY26 Financial Highlights

Metric	Q1 FY26	YoY Change	Insight
Consolidated PAT	₹8,734 cr	–19.5%	Impacted by lower volumes and weaker prices
Revenue from Operations	₹35,842 cr	–4.4%	Decline led by lower coal sales
EBITDA	₹12,521 cr	–13%
Coal Production	~183.3 million tonnes	–3%	Production dipped from 189 MT YoY
Total Expenses	₹25,893 cr	+2%	Operating cost increased marginally
Dividend	₹5.50 per share (interim)	—	Record date: Aug 6; payment by Aug 30

Key Drivers & Operational Trends

• Lower volumes and pricing pressure: Weaker coal demand from the power sector and softer pricing resulted in a ~4% dip in revenues. Production also eased slightly.

• EBITDA contraction: Margin slipped to 34.9% due to lower realizations and steady operating costs.

• Stable cost base: Despite declining top-line, expenses edged up ~2%, reflecting fixed cost structure. 

• Dividend continuity: The board declared an interim dividend of ₹5.50/share, underscoring robust cash flow. 

Market Reaction & Analyst Sentiment

Coal India shares remained steady with limited market chatter post-results. Analysts highlighted the cyclical slump in coal demand, supply headwinds in mining volumes, and continued margin pressure. Yet, strong dividend yield was seen as cushion in investor sentiment. 

Broader Industry Context Before Outlook

Coal demand in India remains vulnerable to erratic monsoon cycles, falling thermal power dispatch, and rising visibility of renewable energy uptake. Coal India's earnings reflect this headwinds-driven perfomance with limited growth visibility until power demand rebounds or demand mix improves. Renewables transition efforts and diversification into gasification/hydro storage could help medium-term resilience.

Outlook & Forward‑Looking View

Key factors to watch in coming quarters:

• Power sector coal consumption trend—especially as monsoon migrates and summer demand softens

• Coal off-take and volume recovery

• Margin trends: realization levels vs cost containment

• Dividend policy and free cash flow consistency

• Strategic diversification initiatives (e.g., gasification, pump storage projects)

Coal India's status as a high-dividend PSU offers a steady income avenue, but near-term earnings remain tied to cyclical coal demand—with limited margin flexibility.

Source:-Coal India,Chatgpt