Coal India share price jumped over 4% after the company reported its Q4 results. Coal India shares rallied as much as 4.63% to ₹473.90 apiece on the BSE.
The world’s largest coal miner, reported a net profit of ₹10,839 crore in the fourth quarter of FY26, registering a growth of 11.15% from ₹9,751 crore in the same period last year. Sequentially, net profit increased 51.4% from ₹7,157 crore reported in the December quarter.
The company’s rose by 5.8% to ₹46,490 crore from ₹43,961 crore, year-on-year (YoY), aided by higher average realization even though the sales declined marginally.
The average realization was higher by 6% YoY to ₹2,289.58 per tonne while overall sales were down 1% at 198.83 tonne, Coal India said.
At the operational front, earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 12% to ₹17,917 crore.
The Maharatna company also announced a final dividend of ₹5.25 per share of face value ₹10 each for the financial year 2025–26, subject to shareholders’ approval.
Should you buy Coal India shares after Q4 results?
Coal India delivered a decent performance, mainly supported by higher e-auction volumes (accounted for ~14% of total volumes). Premium stood at 36% in Q4FY26.
Brokerage firm expects Coal Indian to post a 4% volume CAGR in FY26-28E, while a higher share of e-auction volumes with better premium will support overall NSR and margins. This is expected to translate into a CAGR of 5% and 12% in revenue and EBITDA over FY26-28E, respectively.
“The company’s focus on increasing coal-washer capacity will improve its market share in domestic coking/non-coking coal. Further, management remains focused on expanding its coal mining operations, which will be funded through internal accruals. At CMP, the stock is trading at 5x on FY28E EV/EBITDA,” said the brokerage firm.
Motilal Oswal reiterated its ‘Buy’ rating on Coal India shares with a target price of ₹530 apiece, valuing the stock at 6x FY28E EV/EBITDA.
Coal India’s realizations remained soft, leading to 1% decline in FY26 blended realizations, although production and offtake rebounded sequentially.
While e-auction premiums moderated QoQ in Q4 due to lower reserve prices despite firm global coal trends, Emkay Global Financial Services expects 55% premium sustenance and factors in ~6% volume CAGR over FY27-28E.
The brokerage firm maintained an ‘Add’ call with unchanged Coal India share price target of ₹475 apiece.
Coal India share price has gained over 5% in one month, and more than 17% on a year-to-date (YTD) basis. The PSU stock has jumped 20% in six months and has risen 18% in one year. Coal India share price has delivered multibagger returns of 101% in three years, and a staggering 266% over the past five years.
At 9:45 AM, Coal India share price was trading 4.00% higher at ₹471.00 apiece on the .
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.