Coal India reported a consolidated net profit of ₹8,852.11 crore for Q1 FY27, marking a marginal increase of 0.63% year-on-year from ₹8,797.05 crore in the corresponding period last year. However, the PSU company's net profit dropped more than 18% quarter-on-quarter from ₹10,839 crore reported in Q4 FY26. Revenue from operations stood at ₹46,254.80 crore, marking an 8% YoY increase from ₹42,919.20 crore in Q1 FY26, though it declined slightly from ₹46,490.03 crore in the previous quarter. Total expenses increased 11.9% year-on-year to ₹36,816.23 crore in the first quarter of FY27, with the cost of materials consumed rising 27.3% to ₹3,259.85 crore and contractual expenses growing 10.8% to ₹8,658.42 crore. The company's operating profit (EBITDA) decreased 4.1% to ₹12,069 crore for Q1 FY27 as compared to ₹12,588 crore in Q1 FY26, with margins contracting to 26.1% from 29.3% year-on-year, though they improved marginally from 25.9% in the preceding quarter.
Coal India has officially declared a ₹5.50 dividend per share for Q1 FY27, as reported by CNBC TV18. The PSU's board announced this dividend along with the quarterly results, maintaining the company's reputation as a high dividend-paying stock. The dividend will be paid to eligible shareholders on or before August 25 this year. The company has so far declared 33 dividends since February 2011, and the stock currently offers a dividend yield of 6.18% at the current market price, according to data on Trendlyne. The record date for dividend eligibility has been fixed as July 31, 2026.
Coal India's capital expenditure grew 16.6% to ₹3,399 crore during Q1 FY27, surpassing its quarterly target of ₹3,349 crore by achieving 101.5% of the planned expenditure. The company's Q1 spending represents 20.60% of CIL's total capex target of ₹16,500 crore for the current fiscal. Land acquisition and rehabilitation & resettlement activities accounted for the highest expenditure at ₹804 crore, constituting one-fourth of total capex, as the company emphasized that timely land acquisition is critical for coal mining operations, as mining projects cannot commence or expand without the required land, irrespective of the availability of coal reserves. The company invested ₹754 crore in railway sidings and rail corridors to strengthen coal evacuation infrastructure, while spending ₹195 crore on coal handling plants, silos, weighbridges and roads, taking cumulative coal evacuation infrastructure expenditure to ₹949 crore during the quarter. Plant & machinery segment accounted for ₹819 crore, covering procurement of Heavy Earth Moving Machinery and construction activities, while the company also invested ₹278 crore in solar projects as part of its clean energy diversification. Capital infusion into joint ventures stood at ₹207 crore, reflecting the company's continued focus on expanding its presence in renewable energy and allied businesses.
Coal India's coal production dropped 7.5% to 169.6 million tonnes (MT) in Q1 FY27, despite robust demand from the power sector which has seen unprecedented consumption levels this summer. The company, which accounts for over 80% of the country's coal output, produced 183.3 MT in the April-June period of the previous fiscal year. Coal production by the Maharatna firm also dropped marginally by 0.6% to 57.4 MT in June from 57.8 MT in June last year. Coal arms of CIL that registered negative growth in June include Bharat Coking Coal Ltd (BCCL) and Mahanadi Coalfields Ltd (MCL), while subsidiaries showing positive growth were South Eastern Coalfields (SECL), Eastern Coalfields (ECL), Central Coalfields (CCL) and Western Coalfields (WCL). However, Coal India's offtake rose 7.5% to 65.8 MT during June over 61.2 MT a year ago, with coal offtake in the April-June period increasing 3.5% to 197.7 MT over 191 MT in the year-ago period.
The statutory auditor highlighted significant governance concerns, stating that Coal India did not have the requisite number of independent directors during the quarter. Consequently, the composition of the board, audit committee, and nomination and remuneration committee did not comply with provisions of the Companies Act and listing regulations, attracting penal provisions. The auditor also drew attention to matters at South Eastern Coalfields, including a contingent liability of ₹2,367.14 crore relating to custodian coal mines and non-compliance with tax-deduction-at-source requirements on certain provisions. The auditor's conclusion was not modified on these matters, reflecting the serious nature of the governance and compliance issues identified during the quarter.
