Coal India has raised daily coal dispatches to thermal power plants to 1.78 million tonnes in early October, rising from 1.63 million tonnes in September. The state-run miner is tapping into its pithead stocks to meet urgent energy demands, as nearly half of India’s thermal power stations report critical inventory levels. While this supply push supports grid stability, investors remain focused on whether higher operational costs will continue to pressure profit margins.
Coal India is stepping up its efforts to ensure thermal power plants across the country remain operational. In early October, the company reported an average daily dispatch of 1.78 million tonnes of coal to the power sector. This represents a notable increase from the 1.63 million tonnes recorded in September, reflecting the state-run miner's attempt to meet rising energy needs across the national grid.
The company is relying heavily on its accumulated coal reserves to manage this demand. During the first half of fiscal year 2027, the miner liquidated 63 million tonnes of coal from its pithead stocks. This strategy allows the company to supply more fuel to power stations than its current daily production capacity might otherwise allow. Total offtake for the first six months of the current fiscal year stood at 384.2 million tonnes, marking a 7.6% increase compared to the 357 million tonnes recorded during the same period in the previous year.
While this rise in supply volume is a positive sign for operational throughput, the financial impact for investors is more nuanced. The company faces a difficult balance between meeting critical national energy requirements and maintaining profitability. As of late September, nearly 50% of India’s thermal power plants reported critical coal stock levels. This places significant pressure on Coal India to prioritize supply, even when costs are rising.
The stock, trading around ₹429 on October 5, 2026, has seen investor interest driven by its strong volume performance. However, recent quarterly results have highlighted some of the risks involved. Q1 FY27 saw net profits remain largely flat, as rising operational and extraction expenses led to margin compression. The company faces ongoing challenges in passing on these higher costs to consumers, which can limit the translation of volume growth into actual earnings growth.
Going forward, the power sector remains the primary driver of the company’s business, accounting for 79% of its total offtake in the first half of the fiscal year. Investors may monitor the company’s ability to manage its operational and transport costs in the coming quarters. The key point to track will be whether the company can sustain these high supply levels without further hurting its operating margins, especially as thermal power plants continue to struggle with inventory shortages.