State-run Coal India Limited (CIL) has released its financial results for the second quarter of FY 2025–26 on October 29, 2025, reporting a 32% year-on-year (YoY) decline in consolidated net profit to ₹4,262.64 crore, compared to ₹6,274.8 crore in the same quarter last year. The decline reflects the combined effect of reduced sales and higher operating expenses.
Revenue and Income Performance
Coal India’s revenue from operations stood at ₹30,186.7 crore, marking a 3.2% YoY decrease from ₹31,181.89 crore reported in the corresponding period of the previous year. Sequentially, revenue dropped by 15.8%, mirroring a slowdown in sales volume and weaker realisations.
Sales contributed ₹26,909.23 crore to the total revenue, marginally lower than ₹27,271.3 crore recorded in Q2 FY25. The company’s total income also saw a slight dip of 1.1% YoY, while total expenses surged 7.1%, rising to ₹26,421.86 crore from ₹24,670.70 crore a year earlier.
Profitability and Market Reaction
The decline in profitability was largely driven by increased costs and a moderation in demand during the monsoon-affected quarter. On a sequential basis, the company’s profit dropped by 52% from ₹8,734.17 crore in Q1 FY26.
Following the announcement, Coal India’s shares traded 2% lower at ₹383.50 on the BSE, reflecting a cautious market reaction to the subdued earnings performance.
Dividend Announcement
In addition to reporting its quarterly performance, Coal India’s Board of Directors declared a second interim dividend of ₹10.25 per equity share for FY 2025–26. The record date for determining eligible shareholders has been set as November 4, 2025, and the dividend will be paid by November 28, 2025.
The company confirmed that the payout aligns with recommendations from its Audit Committee and reflects its commitment to shareholder returns, despite near-term operational pressures.
Operational Update
Earlier in the month, Coal India reported a 3.9% decline in coal production for September 2025, with output dropping to 48.97 million tonnes (MT) from 50.94 MT in the same month last year. The company attributed the fall primarily to heavy rainfall, which disrupted mining operations across key producing regions.
Despite the temporary slowdown, the Ministry of Coal continues to emphasise the early completion of critical evacuation projects, aiming to strengthen logistics and ensure smoother coal movement in the coming quarters.
Outlook
As the world’s largest coal producer, Coal India remains integral to India’s energy supply chain. While short-term weather disruptions and rising costs have weighed on profitability, the company’s focus on operational efficiency, infrastructure upgrades, and dividend distribution underscores its stability and long-term resilience in a changing energy market.
Also Read:
- Jindal Steel’s Q2 FY26 Results: Profit Declines 26% YoY, Revenue Grows 4% Amid Expansion Momentum
- Tata Capital Q2 FY26 Results: Profit Rises 2% YoY, Revenue Grows 8% in First Post-Listing Quarter
- TVS Motor Q2 FY26 Results: Record-Breaking Quarter with 42% Profit Growth and 25% Revenue Surge
- Adani Energy Solutions Q2 FY26 Results: Profit Falls 21% YoY, Revenue Grows 7%
- Indian Oil Corporation Q2 FY26 Results: Profit Climbs to ₹7,817 Crore, Revenue Grows 3.9% YoY
Conclusion
Coal India’s Q2 FY26 results highlight a period of pressure on margins and output, with profit falling 32% YoY to ₹4,262 crore and revenue slipping 3.2%. However, the ₹10.25 interim dividend announcement and continued investment in infrastructure indicate the company’s balanced approach towards growth and shareholder value.
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