Shares of Coal India faced downward pressure on Tuesday, July 28, following the state-owned mining enterprise's announcement of a flat profit for the first quarter of the financial year 2026-27, alongside a newly declared dividend payout.
Trading Performance on BSE
At 1:50 pm on Tuesday, the PSU stock was trading 4% lower at Rs 410.3 per share on the BSE, resulting in a market capitalisation of Rs 2,52,887.56 crore. During the trading session, the stock registered an intraday high of Rs 423.85 per share and touched a low of Rs 407.00 per share.
Dividend Declaration and Key Dates
The board of directors of Coal India recommended an interim dividend for the financial year 2026-27 earlier this week. According to the BSE filing released on Monday, the Maharatna PSU board declared an interim dividend of Rs 5.50 per equity share on a face value of Rs 10. To determine shareholder eligibility for this payout, the company fixed Friday, July 31, 2026, as the record date. Investors must hold the stock prior to this date to qualify. The company noted that the payment of the interim dividend for FY 2026-27 will be processed on or before August 25, 2026.
Revenue and Cost Pressures
The public sector coal major posted largely in-line revenue performance propelled by stronger volume offtake. However, its adjusted EBITDA contracted by 9% year-on-year and fell around 17% on a quarter-on-quarter basis. According to a brokerage report released on Friday, the Kolkata-based mining entity missed broader earnings expectations due to cost headwinds stemming from prevailing geopolitical conditions.
The brokerage report anticipated that these cost pressures would stabilize in subsequent quarters. Moving forward, the company is projected to record a 3-4% volume CAGR across FY26-28. An increased share of e-auction volumes combined with improved premiums is expected to bolster overall NSR and margins, translating into an anticipated CAGR of 4% and 9% in revenue and EBITDA respectively for the FY26-28 period.
Analyst Recommendations and Valuations
Analysts maintained a 'Buy' rating on the stock, issuing a target price of Rs 510 per share. At the current market price, the stock trades at 4.9x the FY28E EV/EBITDA. Reaffirming previous estimates, the brokerage retained its buy rating with a target price of INR 510, valuing the enterprise at 6x FY28E EV/EBITDA.
For the quarter ending June, Coal India registered a 0.6% increase in net profit, touching Rs 8,852 crore compared to Rs 8,797 crore recorded in Q1FY26. Revenue from operations expanded by 7.8% to reach Rs 46,255 crore, up from Rs 42,919 crore in the corresponding period of the previous fiscal year. Meanwhile, the company reported an EBITDA margin of 26.1%, compared with 29.3% in the same quarter last year.
