Coal India Q2 net profit jumps 57% to ₹6,547 crore on higher realisations | Industry News

State-owned miner Coal India Ltd (CIL) on Thursday reported a 57 per cent jump in profit after tax (PAT) for the second quarter ended September 2026 to ₹6,547 crore, compared with ₹4,167 crore reported in the corresponding quarter last financial year.

The company’s total income also jumped 21 per cent to ₹46,833 crore during the September 2026 quarter, from ₹38,694 crore posted in the same period last financial year.

The company reported a 4 per cent increase in production to 151 million tonnes (mt) and a 12 per cent increase in coal offtake to 186 mt during the quarter. Overburden removal grew 1 per cent to 352 mt. CIL sold 186 mt of coal in the September 2026 quarter, a 13 per cent increase over the same period last financial year.

The increase in profit was driven mainly by improved average per-tonne realisation and higher other income during the quarter. Average billing realisation grew 7 per cent to ₹2,346 per tonne during the three-month period ended September 2026, from ₹2,186 per tonne in the corresponding quarter last financial year.

Billing realisation for coal sold through fuel supply agreements (FSAs) stood at ₹2,191 per tonne during the second quarter ended September 2026, compared with ₹2,103 per tonne recorded in the same period last financial year, creating a net positive impact of ₹1,411 crore.

During the September 2026 quarter, the company reported a 24 per cent increase in other income, mainly income accruing from interest on cash deposits, to ₹2,654 crore, compared with ₹2,140 crore reported in the same period last financial year.

The two factors, higher per-tonne realisation and other income, muted the impact of a 17 per cent rise in Coal India’s overall expenditure to ₹38,398 crore during the three-month period ended September 2026. Employee benefits expenses rose 8 per cent to ₹11,777 crore, while contractual expenses increased 18 per cent to ₹7,326 crore during the quarter.

Significantly, the company reported an 18 per cent jump in other expenses, which account for expenditure on rates and taxes paid to state governments, to ₹11,878 crore.

The first half of the current financial year, 2026-27, witnessed the incorporation of CIL’s wholly owned overseas subsidiary in Singapore, CIL Global Pte Ltd, with the mandate to explore and develop overseas opportunities in critical mineral asset acquisition and enable efficient management of overseas investments.

Among other major developments during this period, the foundation stone for the country’s first commercial coal gasification project was laid by Prime Minister Narendra Modi in June 2026. The project is being developed by a joint venture (JV) between CIL and Bharat Heavy Electricals Ltd (BHEL), with an investment of ₹25,000 crore in Odisha.