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Coal India: Steady performance supported by higher e-auction volume and lower employee cost

ICICIdirect Research 30 Apr 2026 DISCLAIMER

Total operating income stood at ₹46,490 crore, up by 6% YoY, with coal sales volume of 199 million tonne, down 1% YoY in Q4FY26.
Notably, E-Auction volume contribution has increased from 10% in Q3FY26 to 14% in Q4FY26.
With this, EBITDA/tonne increased by ₹142/ton to ₹636/ton in Q4FY26, primarily driven by lower raw material and employee costs.
Resultant PAT for the quarter stood at ₹10,908 crore, up by 15% YoY
We hold a positive view on the company, supported by steady volume growth with strategic diversification into coal gasification and critical minerals, robust net-cash-positive B/S, and strong dividend yield of ~6%.
Thus, we maintained a BUY rating on Coal India with target price of ₹550 i.e. 5x EV/EBITDA on FY28E.

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