Coal India Q2 Earnings Miss Expectations, Company Declares ₹10.25 Dividend

Energy

29th October 2025, 9:00 AM

Coal India Q2 Earnings Miss Expectations, Company Declares ₹10.25 Dividend

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Stocks Mentioned :

Coal India Limited

Short Description :

Coal India Limited reported its September quarter results, showing revenue down 3.2% year-on-year to ₹30,187 crore, beating analyst revenue expectations but falling short on net profit. Net profit declined to ₹4,263 crore from ₹6,275 crore last year, significantly missing the ₹5,544 crore projection. EBITDA also dropped by 22%. The company announced a second interim dividend of ₹10.25 per share for FY25-26, with a record date of November 4. Shares fell 1.99% following the results.

Detailed Coverage :

Coal India Limited (CIL) announced its financial results for the quarter ending September 30, 2025, revealing a mixed performance that missed analyst expectations for profitability. Total revenue for the quarter stood at ₹30,187 crore, marking a 3.2% decrease compared to the same period last year. However, this revenue figure was higher than the CNBC-TV18 poll forecast of ₹29,587 crore.

The company's net profit saw a substantial decline, falling to ₹4,263 crore from ₹6,275 crore in the corresponding quarter last year. This profit was significantly below the ₹5,544 crore predicted by the CNBC-TV18 poll. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) also decreased by 22% to ₹6,716 crore, falling short of the projected ₹7,827 crore. The EBITDA margin narrowed by 580 basis points to 22.2%, a lower figure than the expected 26.45%.

In a positive note for shareholders, the Board of Directors approved a second interim dividend of ₹10.25 per equity share for the financial year 2025-26. The record date for this dividend has been set as November 4, 2025, with payments expected by November 28, 2025.

Following the announcement, shares of Coal India Limited traded 1.99% lower on Wednesday, closing at ₹383.50. The stock has remained flat on a year-to-date basis.

Impact This news is likely to have a moderate impact on Coal India's stock price in the short term due to the miss on profit and EBITDA expectations. However, the dividend payout might offer some support to investors. The overall performance of a major PSU like Coal India can also influence sentiment in the broader energy and commodities sectors. Rating: 6/10

Definitions * EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): A measure of a company's operating performance before accounting for financing costs, taxes, and non-cash expenses like depreciation and amortization. It provides an indication of a company's ability to generate cash from its operations. * Basis Points: A unit of measure used in finance to describe the percentage change in a financial instrument. One basis point is equal to 0.01% or 1/100th of a percent. A narrowing of 580 basis points means the margin decreased by 5.80%.