Coal India Limited Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
COALINDIA Q3 FY2026: Revenue ₹34,924.19 Cr (vs ₹36,858.62 Cr YoY), PAT ₹7,157.45 Cr (vs ₹8,505.57 Cr YoY)
In Q3 FY2026 Coal India reported consolidated Revenue from Operations of ₹34,924.19 Cr, down from ₹36,858.62 Cr in Q3 FY2025, and Total Income of ₹37,315.83 Cr. Consolidated Profit After Tax attributable to owners was ₹7,157.45 Cr in Q3 FY2026 versus ₹8,505.57 Cr in Q3 FY2025, reflecting YoY pressure on profitability. The quarter includes a one-off estimated cost for pay-scale upgradation of ₹2,201 Cr accounted at the Group level up to 31-Dec-2025. The Board also declared a 3rd interim dividend of ₹5.50 per share for FY2026 (record date 18-Feb-2026).Revenue from Operations (Q3 FY2026)
₹34,924.19 Crvs ₹36,858.62 Cr in Q3 FY2025
Total Income (Q3 FY2026)
₹37,315.83 Crvs ₹39,001.82 Cr in Q3 FY2025
Profit Before Tax (Q3 FY2026)
₹9,472.61 Crvs ₹11,792.42 Cr in Q3 FY2025
Profit After Tax attributable to owners (Q3 FY2026)
₹7,157.45 Crvs ₹8,505.57 Cr in Q3 FY2025
Total Expenses (Q3 FY2026)
₹28,132.00 Crvs ₹27,280.39 Cr in Q3 FY2025
Stripping Activity Adjustment (Q3 FY2026)
-₹1,461.60 Crvs ₹
Basic EPS (Q3 FY2026)
₹11.61vs ₹13.80 in Q3 FY2025
Key Highlights
10
Consolidated Revenue from Operations decreased to ₹34,924.19 Cr in Q3 FY2026 from ₹36,858.62 Cr in Q3 FY2025, indicating weaker top-line versus the year-ago quarter.
Profit after tax attributable to owners fell to ₹7,157.45 Cr in Q3 FY2026 from ₹8,505.57 Cr in Q3 FY2025, driven by lower PBT and higher consolidated expenses.
The Board approved and accounted an estimated pay-scale upgradation cost of ₹2,201 Cr for the Group up to 31-Dec-2025 pursuant to the Hon'ble Jabalpur High Court order, recorded as an adjusting event in Q3 FY2026.
Total expenses increased to ₹28,132.00 Cr in Q3 FY2026 from ₹27,280.39 Cr in Q3 FY2025, partially offsetting revenue and compressing margins.
Stripping activity adjustment (credit) increased to ₹(1,461.60) Cr in Q3 FY2026 from ₹(833.56) Cr in Q3 FY2025, reflecting continued application of Appendix B of Ind AS 16 for surface-mine stripping accounting.
Total Income for the quarter was ₹37,315.83 Cr versus ₹39,001.82 Cr in Q3 FY2025, indicating other income also declined YoY.
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Key Highlights
10
Consolidated Revenue from Operations decreased to ₹34,924.19 Cr in Q3 FY2026 from ₹36,858.62 Cr in Q3 FY2025, indicating weaker top-line versus the year-ago quarter.
Profit after tax attributable to owners fell to ₹7,157.45 Cr in Q3 FY2026 from ₹8,505.57 Cr in Q3 FY2025, driven by lower PBT and higher consolidated expenses.
The Board approved and accounted an estimated pay-scale upgradation cost of ₹2,201 Cr for the Group up to 31-Dec-2025 pursuant to the Hon'ble Jabalpur High Court order, recorded as an adjusting event in Q3 FY2026.
Total expenses increased to ₹28,132.00 Cr in Q3 FY2026 from ₹27,280.39 Cr in Q3 FY2025, partially offsetting revenue and compressing margins.
Stripping activity adjustment (credit) increased to ₹(1,461.60) Cr in Q3 FY2026 from ₹(833.56) Cr in Q3 FY2025, reflecting continued application of Appendix B of Ind AS 16 for surface-mine stripping accounting.
Total Income for the quarter was ₹37,315.83 Cr versus ₹39,001.82 Cr in Q3 FY2025, indicating other income also declined YoY.
Basic EPS decreased to ₹11.61 in Q3 FY2026 from ₹13.80 in Q3 FY2025, mirroring the decline in PAT attributable to owners.
Coal India divested 10% equity in BCCL in Jan 2026 (sale of 46.57 crore shares), with CIL's post-divestment stake at 90% while BCCL remains a subsidiary.
Board declared a 3rd interim dividend of ₹5.50 per equity share for FY2026 with record date 18-Feb-2026 and payment by 13-Mar-2026, reflecting continued shareholder distributions.
Accounting for certain subsidiaries and joint ventures used management-certified unaudited financial statements for consolidation, which the auditors note as reliance on management submissions.
Guidance & Outlook
4
Board declared 3rd interim dividend of ₹5.50 per share for FY2026, signalling management intent to continue cash returns to shareholders.
Financial impact of the pay-scale upgradation (₹2,201 Cr accounted up to 31-Dec-2025) may influence near-term profitability and will be monitored in subsequent quarters.
Management noted no material liability expected from implementation of the New Labour Codes as of the reporting date but will review impact once rules are notified.
Group will continue to apply the stripping activity accounting policy per Ind AS 16 Appendix B, with systematic reversals of prior stripping provision impacting future other operating income recognition.
Risks & Concerns
6
YoY revenue decline to ₹34,924.19 Cr in Q3 FY2026 from ₹36,858.62 Cr in Q3 FY2025 poses demand or price risk for near-term earnings.
One-off estimated pay-scale upgradation charge of ₹2,201 Cr recognised at Group level in Q3 FY2026 creates earnings volatility and cash outflow risk for subsidiaries where not yet approved.
Total expenses increased to ₹28,132.00 Cr in Q3 FY2026, pressuring margins if cost inflation persists or if stripping reversals moderate in future periods.
Auditors flagged reliance on unaudited management-certified interim results for several subsidiaries and joint ventures, which increases consolidation risk until audited numbers are available.
Regulatory/compliance risks include outstanding issues
Stripping activity accounting adjustments (credit of ₹(1,461.60) Cr in Q3 FY2026) introduce timing differences in earnings recognition that may reverse and affect future quarters.
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