Coal India H1 profit rises 19% as revenue increases 14%

Coal India reported consolidated profit after tax of Rs 15,397 crore in H1 26-27, up 19% from Rs 12,955 crore in H1 25-26. Revenue from operations rose 14% to Rs 90,434 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 11% to Rs 25,796 crore and EBITDA margin stayed at 29%.

What drove Coal India’s H1 26-27 profit increase?

Coal India’s profit increase reflected higher product sales, other income and joint-venture profit. Sale of product rose Rs 10,704 crore, or 14%, to Rs 88,859 crore in H1 26-27 from Rs 78,155 crore in H1 25-26. Sale of services and other revenues increased 20% to Rs 1,575 crore from Rs 1,318 crore, taking revenue from operations to Rs 90,434 crore.

Other income increased 25% to Rs 4,694 crore from Rs 3,756 crore, contributing to a 14% rise in total income to Rs 95,128 crore. The major financial highlights page lists H1 25-26 revenue from operations as Rs 79,472 crore, while the consolidated-results table lists Rs 79,473 crore. Both pages report 14% growth in revenue from operations.

Profit before tax increased 15% to Rs 20,448 crore from Rs 17,768 crore. Coal India’s share of joint-venture profit rose 51% to Rs 534 crore from Rs 354 crore, while profit before tax excluding joint ventures rose 14% to Rs 19,913 crore. Tax expense increased 5% to Rs 5,050 crore, compared with the 15% increase in profit before tax.

How did Coal India’s expenditure change in H1 26-27?

Coal India’s expenditure rose 14% to Rs 75,215 crore in H1 26-27 from Rs 65,815 crore in the consolidated financial-results table. The detailed expenditure schedule gives the prior-period total as Rs 65,814 crore, a Rs 1 crore difference. The 14% expenditure increase matched the reported 14% growth in revenue from operations.

Changes in inventories recorded the largest percentage increase among the listed expenditure lines, rising 202% to Rs 4,470 crore from Rs 1,480 crore. Cost of materials consumed rose 24% to Rs 6,012 crore, finance costs increased 21% to Rs 666 crore, contractual expense rose 14% to Rs 15,985 crore and other expenses increased 16% to Rs 23,536 crore.

Employee benefits expense increased 4% to Rs 22,800 crore from Rs 21,923 crore. Depreciation, amortisation and impairment expenses declined 6% to Rs 4,682 crore from Rs 4,972 crore. The stripping activity adjustment was negative Rs 2,935 crore, compared with negative Rs 2,266 crore in H1 25-26.

Why did Coal India’s EBITDA margin remain at 29%?

Coal India reported an EBITDA margin of 29% on revenue from operations in both H1 26-27 and H1 25-26. EBITDA rose 11% to Rs 25,796 crore from Rs 23,291 crore, while revenue from operations increased 14% to Rs 90,434 crore from Rs 79,472 crore on the major financial highlights page.

The presentation does not assign a specific cause for the unchanged margin. It reports that materials cost rose 24% to Rs 6,012 crore, changes in inventories rose 202% to Rs 4,470 crore and other expenses increased 16% to Rs 23,536 crore. These increases occurred alongside the 14% rise in sale of product to Rs 88,859 crore.

Profit after tax grew faster than EBITDA, increasing 19% versus 11%. Beyond operating earnings, the consolidated results include other income of Rs 4,694 crore, up 25%, and a Rs 534 crore share of joint-venture profit, up 51%. Tax expense rose 5% to Rs 5,050 crore while profit before tax increased 15%.

Which subsidiaries changed Coal India’s H1 profit before tax?

Coal India’s subsidiary profit-before-tax movements were mixed, with several increases offsetting declines elsewhere. The subsidiary labelled ECL in the presentation moved to profit before tax of Rs 655 crore from a loss of Rs 581 crore. The subsidiary labelled SECL increased profit before tax by Rs 1,022 crore, or 54%, to Rs 2,911 crore.

The presentation identifies MCL as the largest reported subsidiary contributor to profit before tax, at Rs 6,575 crore, up 7% from Rs 6,126 crore. CCL’s profit before tax rose 55% to Rs 1,814 crore and WCL’s rose 76% to Rs 1,352 crore. CMPDIL increased 24% to Rs 420 crore.

The subsidiary labelled NCL reported profit before tax of Rs 5,938 crore, down 19% from Rs 7,290 crore, a decline of Rs 1,352 crore. BCCL’s profit before tax fell 59% to Rs 83 crore from Rs 199 crore. Despite those declines, Coal India’s consolidated profit before tax rose Rs 2,680 crore, or 15%, to Rs 20,448 crore.

Conclusion

Coal India’s H1 26-27 results combined a 14% increase in revenue from operations, to Rs 90,434 crore, with a 19% rise in profit after tax, to Rs 15,397 crore. Product sales, other income and the higher joint-venture profit share supported earnings, while expenditure also rose 14% and the reported EBITDA margin remained 29%.

The presentation discloses no forward financial target, operating plan or scheduled event for the next reporting period. The unresolved movements to watch are the 19% fall in NCL profit before tax, ECL’s shift from a Rs 581 crore loss to a Rs 655 crore profit, and the faster increases in inventory changes, materials cost and other expenses during H1 26-27.