Coal India Posts 57% Profit Surge in Q2 on Higher Offtake and Improved Pricing

Financial Performance Overview

Coal India Ltd reported a 57% year-on-year increase in net profit, reaching ₹6,547 crore for the second quarter. The state-owned miner's financial growth was primarily supported by stronger fuel offtake and better price realisations, which successfully outweighed rising input costs.

Alongside the earnings report, the Kolkata-headquartered company declared a second interim dividend of ₹10.25 per equity share.

Operational Drivers and Production Figures

During the quarter ended September, coal offtake rose 12% year-on-year to 186.34 million tonnes (MT), bolstered largely by sustained power demand. Average price realisations across fuel supply agreements, e-auctions, washed coal, and other categories increased by 7% to ₹2,346.21 per tonne.

However, overall production grew by a more modest 4% year-on-year to 151.37 MT, missing the company's internal target of 157.83 MT for the period.

Revenue and Rising Expenses

Revenue from the sale of products advanced 21% year-on-year to ₹43,724 crore, while total revenue also climbed 21% to reach ₹44,179 crore.

At the same time, expenditure grew. The company's cost of materials—incorporating expenses on explosives, oil and lubricants, heavy earth-moving machinery, spares, and timber—increased 20% year-on-year to ₹2,752 crore.

Practical Implications and Analysis

What Is Confirmed

• Net profit rose by 57% year-on-year to ₹6,547 crore.
• A second interim dividend of ₹10.25 per share was announced.
• Offtake increased 12% to 186.34 MT, and average price realization rose 7% to ₹2,346.21 per tonne.
• Total revenue grew 21% to ₹44,179 crore, while material costs increased 20% to ₹2,752 crore.

What Remains Unknown

• Specific future production targets and whether quarterly shortfalls will impact annual output goals.
• Future trajectories for e-auction premiums and specific sector-wise demand shifts beyond the power sector.

How to Verify

Readers can review the official financial disclosures and reports published by Coal India Ltd or read the original coverage on [The Hindu](https://www.thehindu.com/business/Economy/coal-india-profit-jumps-57-as-higher-offtake-prices-weigh-over-costs/article71641279.ece).