Coal India Q3 FY26 results: profit falls, ₹5.50 dividend

What happened in Coal India’s Q3 FY26

State-owned Coal India Limited (CIL) reported its December-quarter results with consolidated profit declining year-on-year, alongside the announcement of an interim dividend for FY2025-26. Multiple market reports around the results highlighted different profit figures, but the company’s December 2025 quarter profit was widely reported as lower YoY, with a one-time provision linked to executive pay-scale upgradation cited as a key factor. The stock reaction was also mixed across trading sessions referenced in the reports, with prices quoted at different levels during the day and after market close.

Beyond the quarterly numbers, the updates mattered for two reasons. First, Coal India remains a key bellwether for domestic fuel supply into the power sector, where demand tends to peak in winter and the January to March quarter is typically operationally strong. Second, the dividend announcement and guidance points often drive incremental investor interest because the company is closely tracked for capital returns.

Profit numbers reported across market updates

One detailed report said Coal India posted a consolidated net profit of ₹7,166 crore in the December 2025 quarter, a 16% decline from ₹8,491 crore in the same period last year. The report linked the decline to a one-time provision of ₹2,201 crore for executive pay scale upgradation. Another snippet cited a 17% year-on-year fall in consolidated net profit to ₹8,506 crore from ₹10,253 crore, and noted it was better than a Street estimate of ₹8,083 crore.

A separate market update said the company reported a consolidated net profit of ₹7,165 crore, lower than analysts’ expectations of ₹7,200 crore, citing weaker sales, higher operating costs, and weak realizations. That same update also said profit improved 68% sequentially from ₹4,264 crore in the September quarter. Another excerpt stated sequential profit grew 5.4% from ₹6,800 crore in Q2 FY26.

Because these figures appear in the provided text without a reconciliation, they should be read as different report snapshots rather than a single unified set. What is consistent across the updates is that the December quarter profit was reported as down YoY, and that one-off pay revision provisioning was a stated driver in at least one report.

EBITDA and cost commentary: one-off adjustment in focus

One excerpt highlighted operating performance after adjusting for the one-off impact. It said that excluding a one-off ₹2,200 crore pay-scale revision adjustment, adjusted EBITDA fell 6% YoY to ₹11,500 crore, but beat estimates by 14% to 15%. The same note attributed support to lower material costs, which lifted EBITDA per tonne to ₹615.

This adjusted view is important because it frames how analysts may separate structural operating performance from accounting or policy-linked provisions. Still, the text does not provide the unadjusted EBITDA figure in the same place, so comparisons should be limited to what is explicitly stated.

Dividend declared: amount, record date, payment date

Coal India declared a third interim dividend of ₹5.50 per share for FY2025-26, as per the detailed report. The record date for the dividend was fixed on February 18, 2026, and the dividend was to be paid on or before March 12, 2026.

Another excerpt, focused on Q3 FY25 context, mentioned an interim dividend of ₹5.60 per share and said total interim dividends were ₹21.35 per share as of 9M FY25. This FY25 reference is separate from the FY26 interim dividend announcement but shows how dividends are repeatedly part of Coal India’s market narrative.

Production and operational targets mentioned

The text said Coal India set a production target of 838 million tonnes for FY26, implying a push in Q4, described as “traditionally the best performing quarter.” It also said the company is expected to accelerate production in Q4 to meet annual targets and continue activity across areas including accumulated balance utilisation, critical minerals exploration and development, renewable energy projects in Uttar Pradesh and Rajasthan, and evaluating further subsidiary listings after a “successful BCCL listing.”

Another operational snippet said December production grew 4.6% to 75.7 MT, while offtake (dispatch) dipped 5.2%, with logistics and wagon availability flagged as a point to watch for the January to March period.

Stock price reaction: different snapshots across reports

The market reaction in the provided text spans multiple time stamps and price points. One update said at 12:03 PM, Coal India shares were down 2.46% at ₹408.8. Another noted the share price dropped 3% to ₹408.10, described as a five-week low.

A separate section said the shares closed at ₹486.75 on NSE, down 2.1%, reflecting the profit decline. The same part noted the stock had declined 8% in the past one month but was up 12% year-to-date, and gave a 52-week range of ₹415.20 to ₹612.80. A different “preview” snapshot cited a “current share price” of ₹424.80 (+0.35%) with an intraday range of ₹420.30 to ₹428.00.

Broker views and targets cited

The text included multiple brokerage stances following the quarter. It said JM Financial maintained a ‘reduce’ rating with a target price of ₹401. Another excerpt said Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹525, describing the quarter as “largely neutral,” with volumes exceeding expectations driven by better realizations.

A separate analyst note said the stock was trading at 3.3x FY27E EV/EBITDA, reiterated a Buy rating, and set a target price of ₹480, premised on 4.5x FY27 EV/EBITDA.

Growth forecasts and return ratios referenced

The provided text also included forward-looking forecasts: Coal India is forecast to grow earnings by 5.5% per annum and revenue by 5.6% per annum. EPS was expected to grow 5.4% per annum, and return on equity was forecast at 22.5% in 3 years.

Separately, for Q3 FY25, revenue was cited as ₹35,800 crore (converted from ₹358 billion) with YoY/QoQ movements of -1% / +17%, and in other places revenue numbers were cited in the ₹30,187 crore to ₹36,800 crore range in a preview table.

Key facts table

What to watch next

Coal India management was scheduled to hold an earnings conference call on February 13, 2026 at 4:00 PM IST to discuss results and answer analyst queries. Based on the issues highlighted in the text, investors and analysts are likely to focus on management commentary around e-auction premiums, cost guidance, and how dispatch constraints, if any, could affect Q4 execution.

The FY26 production target of 838 million tonnes also keeps attention on Q4 delivery, given the quarter’s historical importance to annual volumes. Any updates on renewable energy projects and critical minerals exploration, both referenced in the text, will also be monitored as part of Coal India’s broader strategy.

Conclusion

Coal India’s December-quarter updates combined a YoY profit decline influenced by a one-off pay provision with an interim dividend of ₹5.50 per share and a reiterated focus on meeting a large FY26 production goal. The near-term market narrative now shifts to the earnings call on February 13, 2026, where guidance on costs, realizations, and operational execution is expected to shape investor expectations.