Coal India Limited (CIL)

Executive Summary Coal India Ltd (CIL) has reported a modest year-on-year production increase for November 2025, signaling operational stability. While Q2 financials reflected margin pressure and a profit decline, the company surpassed revenue estimates and declared a significant interim dividend, supporting investor sentiment. 1. Operational Performance (November 2025) The company released provisional data regarding production and offtake for November, showing marginal growth in output despite a flat demand scenario. Production Output: Rose by 1.2% YoY to 68 million tonnes (MT), up from 67.2 MT in November 2024. This aligns with the company’s broader aspiration to meet the FY26 production target of 875 MT. Offtake Volume: Registered a marginal decline of 0.3% YoY, standing at 62.7 MT compared to 62.9 MT in the corresponding period last year. 2. Financial Performance (Q2 FY26 Context) The recent quarterly results present a mixed financial picture, characterized by a revenue beat against consensus estimates, offset by profitability headwinds. Revenue from Operations: Stood at ₹30,187 crore, a decline of 3.2% YoY. However, this figure outperformed the street expectation (CNBC-TV18 poll) of ₹29,587 crore. Net Profit: Reported at ₹4,263 crore, down significantly from ₹6,275 crore in the base quarter. This missed the analyst consensus estimate of ₹5,544 crore. EBITDA & Margins: Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) fell 22% YoY to ₹6,716 crore. Consequently, EBITDA margins contracted by 580 basis points to 22.2%, coming in lower than projected estimates of ~26%. 3. Corporate Actions & Shareholder Value Despite the earnings contraction, the Board continues to prioritize shareholder returns. Dividend: Announced a 2nd Interim Dividend of ₹10.25 per equity share (Face Value ₹10) for FY 2025-26.