Coal India offtake leads output by 55 million tonnes

Coal India Limited

sold 322.9 million tonnes of coal in April to August 2026 but produced only 267.5 million tonnes. The 55.4 million tonne gap is being met from pithead stocks, and that cannot last. The numbers August production: 47.5 million tonnes, down 5.7% August offtake: 60.6 million tonnes, up 5.5% April to August production: down 4.5% April to August offtake: up 6.7% Mahanadi Coalfields output fell 10% in August and Northern Coalfields fell 24.8%. Eastern Coalfields rose 39.5%. Read-through Revenue follows offtake, so near-term sales look fine. The risk sits in supply. Emkay estimates April to August output is about 60 million tonnes short of the seasonal target, and expects a post-monsoon catch-up. My take I agree with the direction but want proof. August 2025 output was 50.4 million tonnes. If September and October stay under 50 million while offtake stays above 60 million, stocks keep falling and power-sector supply gets tighter. Mahanadi matters more than it looks. It makes 28.4% of group output, and Coal India plans to sell 10% of it through an offer for sale of 66.18 crore shares, with proceeds going to the parent. A listing helps value, but a shrinking subsidiary weakens the story. Tracking Monthly output back above 50 million tonnes, and the Mahanadi offer filing. Q2 results for realisation per tonne. Stance: Neutral. I need two months of output recovery before turning positive. I do not hold a position in Coal India ***** investment advice.