Coal India Q2 Profit Jumps 57% to Rs 6,547 Crore but Falls 26% From June Quarter; Declares Rs 10.25 Dividend

Coal India reported a sharp year-on-year rise in earnings for the July-September quarter on Thursday evening, helped by much stronger coal dispatches, but the numbers also showed the state-owned miner's profit cooling noticeably from the pace it set in the June quarter.

Profit after tax for Q2 FY27 came in at Rs 6,547 crore, up 57% from Rs 4,167 crore a year earlier. Net profit attributable to shareholders on a consolidated basis was Rs 6,516 crore, a 53% rise over the comparable figure of Rs 4,259 crore. The board also declared a second interim dividend of Rs 10.25 per share for FY27.

The numbers at a glance

Revenue from operations rose 21% to Rs 44,179 crore from Rs 36,553 crore in the same quarter last year. Profit before tax climbed 46% to Rs 8,728 crore. EBITDA, as presented in the company's earnings release, grew 28% to Rs 11,447 crore, lifting the margin to roughly 26% from 24%.

For the first half of the financial year, revenue rose 14% to Rs 90,434 crore and profit after tax increased 19% to Rs 15,397 crore.

Volumes did the heavy lifting

The real driver this quarter was offtake. Coal India dispatched 186.34 million tonnes in Q2, up 13% from 164.96 million tonnes a year ago. Production grew a far slower 4% to 151.37 million tonnes. Average realisation also improved about 7% to Rs 2,346 per tonne.

That gap between what Coal India dug and what it shipped is the most telling detail in the release. Dispatches ran roughly 35 million tonnes ahead of output during the quarter, which means the company was drawing down its stockpiles. Pithead inventory fell 49% between March 31 and the end of September to 66.58 million tonnes. Over the first half, production actually slipped 2% to 321 million tonnes, even as offtake rose 8% to 384.2 million tonnes.

Drawing down a bloated inventory is healthy up to a point, since unsold coal ties up working capital and loses quality over time. But it cannot be repeated indefinitely. If demand from power utilities stays firm through the winter, production will need to pick up to keep supplies steady.

Softer than the June quarter

Measured against the previous quarter, the picture is less flattering. Consolidated net profit fell about 26% from roughly Rs 8,852 crore in Q1 FY27, and revenue slipped around 4.5% from about Rs 46,255 crore. Part of this is seasonal, as the monsoon months typically dampen both mining activity and electricity demand, but it does show the June quarter was an unusually strong base.

Dividend and payout

The Rs 10.25 interim dividend carries a record date of November 4, 2026, with payment due on or before November 27. With the stock closing at Rs 393.10 on the NSE on Thursday, ahead of the results, this single payout works out to a yield of about 2.6%. Coal India has long been a favourite among income-focused investors, and the latest declaration keeps that profile intact.

Spending and diversification

Capital expenditure for April to September reached Rs 7,966 crore, 27% more than a year ago and about 109% of the company's target for the half. Coal India also set up a wholly owned Singapore subsidiary, CIL Global, in August to look at overseas critical-mineral opportunities, and it has been named the preferred bidder for the Gadadharpur iron ore block in Odisha, which has estimated resources of 288 million tonnes.

What to watch

The share price reaction on Friday will likely weigh the strong annual growth and dividend against the sequential slowdown. Beyond that, the key questions are whether production can catch up with dispatches before stockpiles run thin, and whether the diversification into minerals and iron ore can eventually offset the long-term pressure on coal demand from India's renewable energy push.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.