Coal India shares surged during Thursday's trading session following the Maharatna PSU's announcement to spend ₹1,900 crore on research and development (R&D) until Financial Year 2030. According to Goodreturns, the company's June 2026 production declined nearly 1% on an annual basis to 57 million tonnes, which reflected comfortable inventory levels. However, inventories have already declined 22% year-to-date and production is expected to improve in the second half of FY27. Emkay forecasts output to increase from 768 million tonnes in FY26 to 815-850 million tonnes in FY27-28, implying a 6% CAGR, supported by 6-7% power demand growth, stronger thermal generation and electricity consumption, and tighter seaborne coal markets following Indonesia's production target cut to 600 million tonnes for CY26.
Global brokerage UBS has reiterated its bullish stance on Coal India with the highest price target of ₹550 among 25 analysts tracking the stock, as reported by CNBC TV18. The brokerage maintained its 'Buy' rating on the state-run miner, with the target implying an upside potential of nearly 26% from Wednesday's closing price of ₹435.15. According to Bloomberg data, 14 analysts recommend 'Buy', five have a 'Hold' rating and six have a 'Sell' recommendation for the stock. Emkay maintains an 'Add' rating with a target price of ₹475 per share, citing expectations of production ramp-up and favorable market conditions.
According to CNBC TV18, Coal India's offtake remained strong during the June quarter, supported by robust electricity demand amid the summer season. While coal production declined 7% year-on-year in the first quarter of FY27, offtake increased 4%, indicating healthy demand, steady coal movement and liquidation of inventories. The brokerage highlighted improvement in e-auction realisations as elevated international coal prices continued to support premiums. The e-auction premium rose to 42% in June from 36% in May, while the average premium for the first quarter of FY27 stood at 44%.
Coal India shares were trading 0.24% lower at ₹433.7 per share on BSE with a market capitalisation of ₹2,67,215.90 crore at 10:36 pm on Thursday, as reported by Goodreturns. The stock had touched an intraday high of ₹438 per share and an intraday low of ₹433.4 per share. Coal India shares settled 1.7% higher at ₹435.15 on Wednesday and have gained around 9% so far in 2026 but remain nearly 10% below its 52-week high of ₹490.90 per share hit on April 30, 2025. The stock has delivered close to 8% return in 2026 so far and its share price value has declined close to 3.6% in three months.
According to CNBC TV18, UBS noted that buyer participation remained selective, with the allocation rate at 41% in June and 37% for the June quarter. The brokerage's bullish stance reflects expectations of growth outlook improvement for Coal India, with the demand recovery providing a solid foundation for the company's future performance. Emkay emphasizes that Coal India is well-positioned to benefit from Indonesia's production target cut to 600 million tonnes in CY26 from 790 million tonnes in CY25, which should support tighter seaborne coal markets and improve pricing conditions for the Maharatna PSU.
