India’s largest coal producer, Coal India Limited (CIL), on Wednesday reported a substantial year-on-year decline in its consolidated net profit for the quarter ended September 30, 2025 (Q2 FY26).
The company posted a profit of ₹4,262.64 crore, down by roughly 32% from ₹6,274.80 crore in the same period a year ago.
Revenue from operations also slipped, coming in at around ₹30,186.70 crore, representing a year-on-year drop of about 3.2%.
The company’s total expenses rose by about 7% to ₹26,421.86 crore from ₹24,670.70 crore in Q2 FY25.
CIL attributed the weaker performance to a combination of factors: subdued demand, heavier rainfall disrupting operations and lower realisations in its e-auction/business mix.
The company’s production in September declined by about 3.9% to 48.97 million tonnes from 50.94 million tonnes a year earlier, as monsoon-time rains hampered mining operations.
The decline in revenue and rising input and operational costs squeezed margins, with the earnings-before-interest-tax-depreciation-and-amortisation (EBITDA) margin contracting to 22.25% from 27.63% the prior year.
Despite the weaker earnings, the board approved a second interim dividend of ₹10.25 per equity share (face value ₹10) for FY26, with a record date set at November 4 and the payment scheduled by November 28.
Analysts noted that CIL’s results point to heightened headwinds in the domestic coal sector.
With thermal power plants drawing down inventories and limiting new purchases, coal offtake slowed.
Additionally, the mining major’s realisation in certain channels fell and its cost structure faced pressure from elevated fuel, logistics and labour costs.
Shares of Coal India reacted negatively to the results, falling over 2% in intraday trading following the announcement.
Looking ahead, CIL has set an ambitious annual production target of 875 million tonnes and dispatch target of 900 million tonnes for FY26, even as it grapples with near-term softness in demand and margin pressures.
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