Coal India Q2 Profit Rises 57% to ₹6,547 Crore on Higher Coal Prices

Coal India Ltd (CIL), the state-owned coal mining company, reported a significant rise in its profit after tax for the second quarter ending September 2026. The company’s net profit surged by 57 percent to ₹6,547 crore, up from ₹4,167 crore recorded during the same quarter last year.

Along with the profit increase, Coal India’s total income also grew substantially by 21 percent, reaching ₹46,833 crore for the July to September period. This compares to ₹38,694 crore earned in the corresponding period of the previous financial year.

Production and sales volumes both showed positive momentum during the quarter. Coal production rose by 4 percent to 151 million tonnes (mt), while coal offtake—the amount sold—increased by 12 percent to 186 mt. Overburden removal, the process of clearing materials covering coal seams, edged up by 1 percent to 352 mt. The volume of coal sold was 186 mt, marking a 13 percent rise compared to the same quarter in 2025-26.

The main driver behind the profit jump was the improvement in average coal realisation rates. The average billing rate per tonne climbed 7 percent to ₹2,346, compared to ₹2,186 in the previous year’s quarter. Specifically, coal sold under fuel supply agreements (FSAs) saw an increase in billing realisation to ₹2,191 per tonne from ₹2,103 per tonne, contributing to a positive net impact of ₹1,411 crore.

Additionally, Coal India reported a 24 percent rise in other income, primarily from interest earned on cash deposits. Other income totaled ₹2,654 crore during the quarter, up from ₹2,140 crore a year earlier.

These higher coal prices and increased other income helped offset the company’s rising expenses. Overall expenditure climbed 17 percent to ₹38,398 crore in the quarter. Employee benefits expenses increased 8 percent to ₹11,777 crore, and contractual expenses rose 18 percent to ₹7,326 crore. Notably, other expenses, which include payments such as taxes and rates to state governments, grew 18 percent to ₹11,878 crore.

During the first half of the 2026-27 financial year, Coal India made strategic moves to expand its global footprint. The company established a wholly owned subsidiary based in Singapore called CIL Global Pte Ltd. This entity is tasked with pursuing overseas opportunities, including the acquisition of critical mineral assets and the management of international investments.

Another major milestone for Coal India in 2026 was the laying of the foundation stone for India’s first commercial coal gasification project. The ceremony was led by Prime Minister Narendra Modi in June 2026. This project is a joint venture between Coal India and Bharat Heavy Electricals Ltd (BHEL) and involves an investment of ₹25,000 crore in the state of Odisha.

Coal India plays a vital role in meeting India’s energy needs, supplying a large share of the country’s coal consumption. The company’s financial performance reflects the ongoing demand for coal in industries and power generation, despite global shifts toward renewable energy sources. The increase in coal prices and production volumes highlights Coal India’s capacity to maintain steady growth amid evolving market conditions.

As India continues to balance energy security with environmental considerations, Coal India’s efforts to innovate through projects like coal gasification and overseas expansion signal its commitment to adapting within a changing energy landscape.