Coal India Q1 Results: A Detailed Analysis
Coal India Ltd., the state-run coal supplier, has posted a 20% decline in its net profit for the first quarter of fiscal 2026. The company reported a consolidated bottom line of Rs 8,743.38 crore for the April-June quarter, compared to Rs 10,959.47 crore in the same period last year.
Revenue and Ebitda: A Year-on-Year Comparison
Revenue fell 4.4% year-on-year for the three months ended June, reaching Rs 35,842.19 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 13% year-on-year to Rs 12,521.42 crore. The Ebitda margin contracted to 34.9%.
Key Highlights of Q1 Results
- Revenue down 4.4% to Rs 35,842.19 crore versus Rs 37,503.87 crore.
- Net profit down 20% to Rs 8,743.38 crore versus Rs 10,959.47 crore.
- Ebitda down 13% to Rs 12,521.42 crore versus Rs 14,338.53 crore.
- Margin at 34.9% versus 38.2%.
Dividend Announcement and Stock Performance
The company also declared the first interim dividend of Rs 5.50 per share for fiscal 2026. The record date for the same has been set as Aug. 6, while the payment for the first interim dividend will be made on Aug. 30.
The quarterly earnings were shared aftermarket hours. The stock settled 0.93% lower at Rs 376.35 apiece on the NSE, compared to a 0.35% decline in the benchmark Nifty 50. Coal India’s shares have fallen 27.53% in the last 12 months and risen 2.03% year-to-date.
Analyst Ratings and Price Targets
Out of 25 analysts tracking the company, 17 maintain a ‘buy’ rating, four recommend a ‘hold’ and as many suggest ‘sell’, according to Bloomberg data. The average 12-month consensus price target of Rs 424.27 implies an upside of 12.7%.
What Do The Numbers Indicate For Investors?
The decline in net profit and revenue is a cause for concern for investors. However, the company’s dividend announcement and the average 12-month consensus price target suggest that there is still value in the stock.
Investors should keep a close eye on the company’s future earnings and the overall performance of the coal sector. Read more about the coal sector outlook and how it may impact your investments.
Conclusion
In conclusion, Coal India’s Q1 results show a decline in net profit and revenue. While this is a cause for concern, the company’s dividend announcement and the average 12-month consensus price target suggest that there is still value in the stock. Investors should keep a close eye on the company’s future earnings and the overall performance of the coal sector.
