Coal India shares jump 3% after Q4FY25 results beat Street estimates

On Thursday, Coal India share price jumped upto 3 percent, touching a day’s high price of Rs. 394.95 on NSE after reporting Q4FY25 results with a 12 percent year-on-year increase in consolidated net profit, reaching Rs. 9,593 crore compared to Rs. 8,530 crore in Q4FY24. This profit surpassed market estimates and reflects strong earnings despite a slight decline in revenue from operations, which fell by about 1 percent to Rs. 37,824 crore from Rs. 38,214 crore in the same quarter last year.

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 3.5 to 4 percent to Rs 11,790 crore, with the EBITDA margin expanding to 31.2 percent from 29.8 percent a year earlier. This margin improvement underscores better operational efficiency.

Operationally, Coal India produced 237.69 million tonnes of raw coal in Q4FY25, marking a 1.7 percent decline from 241.76 million tonnes in Q4FY24. The slight drop in production was attributed to seasonal factors and operational challenges. Coal offtake remained nearly flat at 201.38 million tonnes, marginally lower than 201.63 million tonnes in the previous year’s quarter, indicating steady demand.

For the entire fiscal year FY25, Coal India’s total coal production stood at 781.05 million tonnes, a marginal increase over 773.65 million tonnes in FY24, though it fell short of the company’s annual target of 838.20 million tonnes by nearly 7 percent. Offtake for the year rose moderately to 763.06 million tonnes from 753.51 million tonnes in FY24. The company also reported an increase in overburden removal (OBR), which supports coal extraction, reflecting operational scale.

The total expenses for Q4FY25 rose slightly to Rs. 29,057 crore from Rs. 28,950 crore in Q4FY24, indicating controlled cost management. Earnings per share (EPS) for the quarter improved to Rs 15.58 from Rs 13.91 in the corresponding period last year.

The company’s board recommended a final dividend of Rs. 5.15 per share for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). This final dividend adds to the interim dividends declared earlier, and the total dividend for FY25 stays at Rs. 26.50 per share, which is 265 percent of the face value of Rs. 10 each, reflecting Coal India’s commitment to rewarding shareholders.

Coal India shares have corrected around 28 percent from their 52-week high price of Rs. 543.55 per share. Looking forward, Coal India has set ambitious targets for FY26, aiming to produce 868 million tonnes of coal.

In summary, Coal India’s Q4FY25 results showed profit growth driven by improved operational efficiency and stable demand, even as production slightly declined. The company maintained steady revenue and controlled costs while declaring a healthy dividend. Although the company was not able to meet the expected FY25 target, they have set a higher aim for FY26. Despite challenges, Coal India is one of the consistent dividend-paying companies in India with a payout ratio of 6.65 percent.