Coal India Ltd. (COALINDIA) AI Stock Analysis

• Market Cap: ₹2.71T
• Dividend Yield: 6.62%
• Average Volume (3M): 350.07K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.07
• Revenue Growth: -0.76%
• EPS Growth: -10.84%
• Country: IN
• Employees: 228,861
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 6.90
• Shares Outstanding: 6,162,728,500
• 10 Day Avg. Volume: 371,148
• 30 Day Avg. Volume: 350,068
• PEG Ratio: -1.27
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 15.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ₹500.00 ▲(16.97% Upside)

Coal India Ltd. achieves a strong overall stock score driven by its robust financial performance and attractive valuation. The company's solid profitability and low P/E ratio, coupled with a high dividend yield, make it appealing to investors. Technical analysis indicates a neutral trend, suggesting stability but limited immediate upside potential.

Positive Factors

Scale & market position

Very large scale and dominant domestic position provide durable competitive advantages: bargaining power with large utility customers, operational leverage across many mines, and the ability to amortize fixed costs and capex across high volumes. This scale supports stable supply contracts and resilience over the next 2–6 months.

Balance sheet strength

Low leverage and a strong equity base give the company durable financial flexibility to fund mine development, absorb cyclical downturns, and maintain payments to stakeholders. A conservative balance sheet reduces refinancing risk and supports strategic capex or dividend policy stability over months.

Cash generation & margins

Sustained operating cash flows and historically high gross and net margins underpin long-term operational resilience. Strong free cash flow supports reinvestment in mine development, maintenance capex, and shareholder returns, helping the business remain solvent and competitive across mid‑term cycles.

Negative Factors

Revenue decline

A material negative revenue growth reading indicates a significant contraction in realized volumes or pricing. If sustained, falling revenues erode fixed‑cost absorption, weaken cash flow margins and limit funding for capex and maintenance, exposing the company to operational and serviceability risks over several months.

Earnings deterioration

Double‑digit EPS decline implies margin pressure or lower realizations that can persist beyond a quarter. Continued EPS deterioration reduces retained earnings, constrains reinvestment and dividend capacity, and may signal structural cost or demand issues that impair long‑term profitability if not addressed.

Policy & logistics concentration risk

Heavy reliance on domestic power demand, administrative pricing and rail dispatch creates structural vulnerability. Policy shifts, regulatory intervention or persistent rail bottlenecks can restrict volumes and margins for months, limiting revenue realization and adding execution risk to expansion or supply commitments.

Coal India Ltd. Business Overview & Revenue Model

Company Description

Coal India Limited, together with its subsidiaries, produces and market coal and coal products in India. The company offers coking coal primarily for use in steel making and metallurgical industries, and for hard coke manufacturing; and semi coking coal that is used as blend-able coal in steel making, merchant coke manufacturing, and other metallurgical industries. It also provides non-coking coal that is used as thermal grade coal for power generation, as well as for cement, fertilizer, glass, ceramic, paper, chemical, and brick manufacturing, and other heating purposes. In addition, it offers beneficiated and washed non-coking coal for use in power generation; beneficiated non-coking coal for use in cement, sponge iron, and other industrial plants; and middling products for power generation and by domestic fuel plants, brick manufacturing units, cement plants, industrial plants, etc. Further, the company provides rejects that are used for fluidized bed combustion boilers for power generation, road repairs, briquette making, land filling, etc. The company was incorporated in 1973 and is headquartered in Kolkata, India.

How the Company Makes Money

Coal India generates revenue primarily through the sale of coal, which constitutes its main revenue stream. The company sells coal to various sectors, with the power sector being the largest consumer, accounting for a significant portion of its sales. Additionally, Coal India has established long-term supply contracts with various companies and government entities, ensuring a stable demand for its products. The company also benefits from coal auctions and e-auction mechanisms, which allow it to sell coal at competitive prices. Furthermore, Coal India engages in the production of various by-products derived from coal, such as coal gas and tar, contributing additional revenue. Its strategic partnerships with other companies and investments in technologies for efficient coal extraction and production enhance its operational capabilities and profitability.

Coal India Ltd. Financial Statement Overview

Summary

Coal India Ltd. exhibits a strong financial position with high profitability, solid balance sheet metrics, and a positive cash flow trend. The company's ability to maintain high margins and generate substantial free cash flow suggests resilience in its operations. While the balance sheet is strong, continuous monitoring of liabilities and expenditure management is advisable to sustain long-term growth.

Income Statement

Coal India Ltd. demonstrates robust profitability with consistently high gross and net profit margins over the years. The company has shown strong revenue growth, particularly between 2022 and 2023, indicating a positive trajectory. Although there was a slight decline in revenue from 2024 to 2025, margins remained stable, showcasing operational efficiency.

Balance Sheet

The balance sheet presents a strong equity base with a favorable debt-to-equity ratio, indicating low leverage and financial stability. The equity ratio is healthy, reflecting solid asset management. However, the company should monitor its liabilities growth to maintain this stability in the long run.

Cash Flow

Coal India Ltd. has shown a positive trend in operating cash flow, supporting its ability to generate cash from operations. The free cash flow has grown significantly, enhancing financial flexibility. However, high capital expenditures and fluctuations in free cash flow to net income ratio could pose potential risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.32T	1.33T	1.35T	1.32T	1.10T	857.82B
Gross Profit	1.13T	1.14T	1.17T	1.11T	881.74B	713.96B
EBITDA	439.06B	469.94B	478.97B	441.66B	247.47B	186.36B
Net Income	331.42B	353.58B	374.02B	317.63B	173.58B	127.00B
Balance Sheet
Total Assets	0.00	2.60T	2.38T	2.11T	1.80T	1.62T
Cash, Cash Equivalents and Short-Term Investments	373.91B	363.71B	329.34B	431.11B	390.80B	202.60B
Total Debt	0.00	91.46B	65.23B	43.31B	35.14B	58.83B
Total Liabilities	-999.51B	1.60T	1.54T	1.53T	1.36T	1.25T
Stockholders Equity	999.51B	991.05B	827.30B	572.45B	431.43B	365.17B
Cash Flow
Free Cash Flow	0.00	159.07B	12.82B	203.73B	290.64B	-4.55B
Operating Cash Flow	0.00	292.00B	181.03B	356.86B	410.88B	105.60B
Investing Cash Flow	0.00	-100.76B	-44.86B	-234.23B	-264.81B	3.39B
Financing Cash Flow	0.00	-133.09B	-138.99B	-136.61B	-134.41B	-84.55B

Coal India Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 427.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:COALINDIA, the sentiment is Positive. The current price of 427.45 is below the 20-day moving average (MA) of 428.42, above the 50-day MA of 403.16, and above the 200-day MA of 380.92, indicating a bullish trend. The MACD of 9.45 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 80.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:COALINDIA.

Coal India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMDCLTD	78 Outperform	₹183.77B	19.59	―	1.91%	-0.96%	57.80%
COALINDIA	77 Outperform	₹2.71T	9.00	―	6.62%	-0.76%	-10.84%
NTPC	73 Outperform	₹3.45T	14.36	―	2.66%	1.68%	7.60%
NLCINDIA	69 Neutral	₹359.28B	14.05	―	1.20%	18.29%	42.31%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ADANIPOWER	62 Neutral	₹2.61T	22.76	―	―	-0.70%	-5.41%
RPOWER	55 Neutral	₹116.88B	38.33	―	―	-0.06%	-74.64%

Coal India Ltd. Corporate Events

Coal India Partially Divests Bharat Coking Coal in ₹23-Per-Share IPO

Coal India Limited has announced the successful initial public offering and stock exchange listing of its subsidiary Bharat Coking Coal Limited, which sold 465.7 million equity shares at ₹23 per share on the BSE and NSE effective January 19, 2026. Following the offer for sale, Coal India’s stake in Bharat Coking Coal has been reduced from 100% to 90%, meaning the unit is no longer a wholly owned subsidiary but continues to remain under Coal India’s control, marking a partial divestment that broadens the subsidiary’s shareholder base while retaining majority ownership.

Coal India Subsidiary BCCL Files Prospectus for ₹10-Share IPO Offer for Sale

Coal India Limited has announced that its wholly owned subsidiary, Bharat Coking Coal Limited, has filed its prospectus dated 13 January 2026 with the Registrar of Companies in Jharkhand on 14 January 2026, advancing plans for an initial public offering of equity shares with a face value of ₹10 each. The IPO, structured as an offer for sale of up to 465.7 million shares, marks a significant step in Coal India’s ongoing equity market strategy and could broaden the shareholder base of BCCL, potentially enhancing transparency, market visibility and governance standards for the subsidiary while aligning with regulatory disclosure obligations.

Coal India Links Share Price Surge to Move Allowing Foreign Buyers in E-Auctions

Coal India Limited informed the stock exchanges that a material price movement was observed in its share price on 2 January 2026 and clarified that, on the same date, it had issued a press release announcing that it now permits direct participation of foreign coal buyers in its e-auction platform. The company’s intimation links the share price movement to this operational development, highlighting a step that could broaden Coal India’s buyer base, open its auction mechanism to global participants and potentially influence its pricing dynamics and market positioning in both domestic and international coal trade.

Coal India Opens E-Auctions to Direct Participation by Neighbouring Countries’ Buyers

Coal India Limited has opened its Single Window Mode Agnostic (SWMA) e-auction platform to allow coal consumers in neighbouring countries such as Bangladesh, Bhutan and Nepal to directly participate in its online coal auctions from 1 January 2026. Approved by the company’s board, the revised framework enables foreign buyers to bid alongside domestic consumers, replacing the earlier model where cross-border buyers could only access Coal India’s output through domestic traders.

The move is aimed at expanding Coal India’s market reach while maintaining priority for domestic supply, and is expected to improve transparency, competition and integration with regional coal markets. The updated scheme introduces one-time registration, digital bidding, advance electronic payments, and export via specified logistics channels, with payments structured under FEMA norms and settled in US dollars for Bangladesh and Bhutan and either US dollars or Indian rupees for Nepalese buyers, signalling a more formalized and regulated export mechanism for stakeholders in the neighbouring markets.

Coal India Limited Opens Special Window for Share Transfers and Implements E-Dividend Payments

Coal India Limited has announced the opening of a special window for the re-lodgement of transfer requests for physical shares, as well as the implementation of electronic payment of dividends. These initiatives aim to streamline shareholder processes and enhance operational efficiency, potentially improving stakeholder engagement and satisfaction.

Coal India Fined for SEBI Regulation Non-Compliance

Coal India Limited has been fined Rs. 5,42,800 by the Bombay Stock Exchange for non-compliance with Regulation 17(1) of the SEBI Listing Obligations and Disclosure Requirements for the quarter ending September 2025. The company asserts that the non-compliance was not due to negligence or default on their part, and they are making continuous efforts to meet compliance requirements. CIL has requested a waiver of the penalty, citing past instances where such requests were favorably considered.