Coal India Seen Reaching Rs 506: Geojit Financial Services Maintains Buy Recommendation

Coal India Ltd. (CIL) Q3FY26 Results

Key Highlights

• Coal India Ltd., one of the world's largest coal producers, reported a 5.2% YoY decline in consolidated revenue to Rs. 34,924cr in Q3FY26.
• The company's coal production output totaled 781 MT in FY25, with a target to reach 1 billion tonne by FY28-29.

Revenue and Sales Performance

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• Coal offtake volumes declined to 188.17 MT from 194.10 MT, while e-auction realisation fell to Rs. 2,435 per tonne from Rs. 2,685 per tonne.
• Notified processes for FSA supplies improved, partly offsetting the decline in e-auction realisation.
• Other operating income fell 8.7% YoY to Rs. 4,106cr, due to reduced stripping activity adjustments and lower recovery of service and logistics-related charges.

Profitability

• EBITDA declined 24.2% YoY to Rs. 9,331cr, with a narrowed EBITDA margin of 26.7%, down 670bps YoY.
• PAT decreased 15.6% YoY to Rs. 7,166cr, due to a lower topline and a one-time provision for executive employee pay scale upgradation.

Outlook and Recommendation

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• We upgrade our rating on the stock to BUY, with a revised target price of Rs. 506, based on 6.3x FY28E EV/EBITDA.