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Coal India reported a flattish production volume growth to 56.1 million tons

ICICIdirect Research 02 Jul 2026 DISCLAIMER

News: Coal India reported a flattish production volume growth to 56.1 million tons (MT) in June’26 with YTDFY27 volume reaching ~170 MT, down ~8% YoY. Similarly, offtake volume for the month stood at 65.8 MT (up 7.5% YoY), with sales volume reaching ~198 MT, growth of 3.5% YoY in the same period. Moreover, ~26.6 MT of coal was offered under the E-auction route in June’26, of which ~41% i.e. ~10.9 MT was allocated at premium exceeding 42% of over notified price in the month.

View: After witnessing a prolonged period of subdued performance, offtake volumes recorded a healthy recovery during the month. On the e-auction front, allocation volumes increased from ~8.4 MT in May'26 to ~10.9 MT in June'26, while e-auction premiums improved from 33% to 41% over the same period. From a long-term perspective, we remain constructive on the company, supported by its strategic diversification into coal gasification, critical minerals, and renewable energy, along with a robust net-cash balance sheet and an attractive dividend yield of ~6%.

Impact: Positive

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