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Coal India Profit Climbs 11%, Dividend Boosted
28 Apr
Summary
- Net profit increased by 11.15% to Rs 10,839 crore in Q4 FY26.
- Board proposed a final dividend of Rs 5.25 per equity share for FY26.
- Stock gained 4.3% in early trade, reaching Rs 471.85.
Coal India announced an 11.15% year-on-year increase in net profit for the fourth quarter of FY26, reaching Rs 10,839 crore compared to Rs 9,751.6 crore in the prior year. Revenue saw a 5.8% growth, amounting to Rs 46,490 crore, with EBITDA rising by 6.2% to Rs 12,673.2 crore.
The company's board has proposed a final dividend of Rs 5.25 per equity share for FY26, pending shareholder approval. Operationally, coal production for March saw a slight decline of 1.5% year-on-year, yet offtake experienced a marginal increase of 0.7%.
Expansion initiatives are underway, including a 750 MWh battery energy storage project in Telangana and planned investments of approximately Rs 3,300 crore in eight coking coal washeries. Brokerages maintain a largely constructive outlook, citing attractive valuations and dividend yield, despite some near-term headwinds.
Jefferies maintains a 'buy' rating with a target price of Rs 500, highlighting strong Q4 cash EBITDA and potential for FY27 earnings growth. Conversely, HSBC holds a cautious 'hold' rating with a Rs 440 target price, noting higher other income and increased inventory levels as potential concerns.
