Coal India OFS: 1% stake sale, floor ₹412 (May 2026)

Market focus shifts to PSU divestment and Q4 earnings

Coal India shares came under pressure after the Government of India announced plans to divest up to a 1% stake through an offer-for-sale (OFS), with an option to sell an additional 1%. The OFS is scheduled for May 27 and May 29, and the floor price has been set at ₹412 per share. The stock reaction contrasted with gains in two other names where quarterly numbers drove sentiment. Gandhar Oil Refinery India shares rallied 6% after a sharp rise in profit and double-digit revenue growth in the March quarter. Landmark Cars climbed 3% after reporting a more than 10-fold jump in quarterly profit, with revenue also rising year-on-year. Together, the moves highlighted how both supply events (like OFS) and earnings prints can dominate near-term trading.

Coal India OFS details: dates, size option, and floor price

The government’s plan involves selling up to a 1% stake in Coal India via OFS on May 27 and May 29. The structure includes an option to offload an additional 1% stake, taking the potential sale to 2% if the extra portion is exercised. The floor price for the OFS has been set at ₹412 per share, a key reference point for investors assessing the implied discount to prevailing market levels. News flow around the OFS contributed to a drop of about 4% in Coal India shares in the session highlighted. Separately, another headline noted Coal India “tumble nearly 4%” after the Centre launched a 2% stake sale via OFS on May 27, aligning with the base sale plus the additional option. The immediate market reaction reflected concerns about increased supply of shares in the secondary market. Such stake sales are closely tracked in large public sector undertakings because they can temporarily influence liquidity and pricing.

Reports of a larger sale and Coal India’s clarification

In addition to the announced OFS, market chatter earlier in May referenced a potential 3% to 4% stake sale that could raise around ₹10,000 crore. Those reports linked the possible fundraise to the Union Budget 2026 disinvestment and asset sales target of ₹80,000 crore. Coal India later clarified that it had not received any official communication from the Ministry of Coal or the Department of Investment and Public Asset Management (DIPAM) about a rumoured 3% to 4% stake divestment. The company said it made a regulatory disclosure under SEBI LODR Regulation 30 to address the speculation. Even with the clarification, the episode showed how quickly expectations of supply can influence a PSU stock’s trading tone. In one update, Coal India shares were reported down about 3% to trade near ₹456.1 on NSE during afternoon hours.

Coal India price action and investor positioning snapshot

Coal India traded at multiple reference points across the updates. One market snapshot cited the stock at ₹468.05 as on May 26, 2026 at 10:30 AM IST, up 2.20% versus a previous share price of ₹456.55. Another data point noted the share price moved up 3.37% from a previous close of ₹458.00 to a last traded price of ₹473.40. A separate report covering the stake-sale chatter said the stock fell as much as 2.86% to ₹456.30 on BSE and was trading 1.75% lower at ₹461.55, with a market capitalisation of ₹2.86 lakh crore. The same report noted a 52-week high of ₹490.90 on April 30, 2026 and a 52-week low hit on August 28, 2025, with the stock rebounding 33% from that low. Shareholding details cited for the March 2026 quarter included the Government of India holding 63.13%, with public shareholders owning 36.87%, including Life Insurance Corporation of India at 11% and mutual funds at 9.5%.

Financial performance: Q4 FY26 numbers and operating metrics

Coal India’s reported January to March quarter results featured in the news flow alongside the OFS headlines. One update said net profit rose 12% year-on-year to ₹10,908 crore for the quarter, while revenue from operations increased 6% year-on-year to ₹46,490 crore. It also reported EBITDA of ₹17,917 crore, up 12%, with margins improving to 39% from 36% in the corresponding period last year. Revenue growth was attributed to higher realisations, while volumes were largely unchanged, with average realisation per tonne rising 6% year-on-year to ₹2,290 and total sales volume slipping around 1% to 198.83 million tonnes. Another report on the same results said consolidated profit after tax rose 11.15% year-on-year to ₹10,839 crore in Q4FY26, compared with ₹9,751 crore a year ago, with revenue from operations again cited at ₹46,490 crore. The company’s board meeting for the audited results was held on April 27, 2026, and the board also recommended a final dividend of ₹5.25 per share (face value ₹10).

Dividends and prior quarterly softness still in focus

Coal India’s dividend track record was also mentioned as a key investor reference point. In the past 12 months, the company declared an equity dividend of ₹26.40 per share, including the final dividend of ₹5.25 per share for FY26 announced after the Q4 results meeting. Another historical data point cited September quarter results reported on October 29, 2025, when consolidated revenue fell 3.2% year-on-year to ₹30,187 crore. Net profit for that quarter was ₹4,263 crore versus ₹6,275 crore in the same quarter last year, while EBITDA was ₹6,716 crore, down 22% year-on-year. EBITDA margin declined 580 basis points to 22.2% from 27.8% and the stock traded around ₹383.50 that day, down 1.99%. The company also declared a second interim dividend of ₹10.25 per equity share for FY2025-26, with a record date of November 4, 2025 and payment expected by November 28, 2025.

Other trigger: e-auction reserve price cut and margin concerns

Apart from divestment headlines, Coal India saw selling after it cut coal reserve prices in its single-window, mode-agnostic e-auction segment. One report said the stock fell 4.79% to ₹432.35 after the e-auction reserve price cut, closing down ₹21.75 for the day. The market concern described was that lower realised prices could squeeze margins, particularly at a time when production inputs have become more expensive. The combination of potential share supply from stake sales and pricing decisions that could affect realisations added to the near-term caution. The coverage also compared the market reaction with an earlier instance when the stock dropped about 3% after Coal India’s board approved stake sales in subsidiaries SECL and MCL.

Gandhar Oil and Landmark Cars: earnings-driven gains

While Coal India moved on supply and pricing headlines, two other stocks gained on quarterly performance. Gandhar Oil Refinery India shares rallied 6% after the company posted a 248.6% rise in Q4 profit to ₹40.7 crore versus ₹11.7 crore a year ago. Revenue increased 13.7% year-on-year to ₹1,093.4 crore from ₹961.7 crore. Landmark Cars advanced 3% after reporting more than a 10-fold jump in quarterly profit to ₹15.03 crore compared to ₹1.42 crore in the year-ago period. Landmark’s revenue rose 17.2% year-on-year to ₹1,278.5 crore from ₹1,091.2 crore. The price moves reflected how investors often reward clear profit acceleration, especially when accompanied by steady revenue growth.

Key numbers at a glance

Why this set of headlines matters for investors

For Coal India, the OFS mechanics and the floor price matter because they influence how the market prices near-term supply. The government holding of 63.13% means even relatively small changes in sell plans can move sentiment due to the stock’s index and institutional ownership profile. The clarification that no official communication was received about a 3% to 4% divestment helped distinguish confirmed actions from speculation, but the episode still highlighted the sensitivity to such reports. Separately, pricing decisions in e-auctions drew attention because they can affect realisations and margins, which are core drivers of earnings. For Gandhar Oil and Landmark Cars, the market’s positive reaction underlined a more straightforward link: higher profits and rising revenues can support near-term momentum when results surprise positively.

Conclusion

Coal India’s slide tracked the government’s announced OFS plan for May 27 and May 29, with a floor price of ₹412 and an additional 1% sale option that could take the stake sale to 2%. In the same market tape, Gandhar Oil and Landmark Cars moved higher after reporting sharp year-on-year profit growth in the March quarter. The next key developments for Coal India are the execution of the OFS window and any further regulatory updates from the company or the government on stake-sale plans.