This Maharatna PSU Stock, engaged in the exploration, production, transportation, and supply of coal, primarily supporting power generation and other key industries across India, jumped 4.93 percent after the company announced its business highlights for August FY27, while UBS retained its ‘Buy’ rating with a target price of Rs. 550 per share.
With a market capitalization of Rs. 2,58,218.32 crores, the share of Coal India Limited has reached an intraday high of Rs. 422.35 per equity share, rising nearly 4.93 percent from its previous day’s close price of Rs. 402.50. Since then, the stock has retreated and is currently trading at Rs. 419 per equity share.
Business Highlights (August FY27)
Coal India announced its business highlights for August FY27, showing steady growth in coal supplies across key sectors. Strong demand from the power and non-regulated sectors supported the company’s performance and improved market sentiment. The positive update also helped Coal India’s stock gain 4.93 percent during intraday trade, as investors responded positively to the company’s strong operational performance.
- Overall Coal Supplies: Coal India’s total coal supplies increased by 5.5 percent year-on-year in August FY27 to 60.60 million tonnes (MT), compared with 57.40 MT supplied in the same month last year. The increase reflects steady demand for coal across different sectors and highlights the company’s continued focus on maintaining strong supplies.
- Power Sector Supplies: Coal supplies to the power sector rose 4.5 percent to 48.46 MT in August FY27, compared with the year-ago period. Higher supplies to power plants are important for maintaining adequate fuel availability and supporting uninterrupted electricity generation, particularly as power demand remains strong.
- Non-Regulated Sector Growth: Supplies to the non-regulated sector recorded stronger growth of 9.6 percent, reaching 12.12 MT in August FY27, against 11.06 MT in August last year. The growth indicates healthy demand from industries outside the power sector and adds to Coal India’s overall supply performance.
- Five-Month Performance: For the first five months of FY27, Coal India’s total coal supplies stood at 322.90 MT, marking a 6.7 percent increase from 302.60 MT supplied during the corresponding period of the previous year. The consistent growth over the five-month period points to sustained improvement in the company’s operational performance.
- Strong Coal Inventory: Coal India also continued to reduce its pithead coal inventory, with around 55 MT of stocks liquidated during the period. Despite this liquidation, approximately 76 MT of coal remains available at pitheads. The sizeable inventory provides the company with a comfortable supply position and supports its ability to meet the fuel requirements of the power sector.
Brokerage Viewpoints
UBS, a prominent brokerage firm, has recommended a “Buy” call on Coal India Limited with a target price of Rs. 550 per share, indicating an upside potential of 36.65 percent from its previous day’s close price of Rs. 402.50.
UBS maintained its “Buy” rating on Coal India, highlighting improved coal offtake and a rise in e-auction premiums during August 2026. The brokerage noted that higher demand has supported stronger market conditions for the company, particularly in the e-auction segment.
Coal offtake increased 6 percent year-on-year during August, although it remained below the 13 percent YoY growth in power demand. UBS also highlighted that e-auction premiums increased amid strong demand, which could support Coal India’s realisations and earnings. Overall, the brokerage remains positive on the company’s operating outlook, supported by healthy demand and improving e-auction pricing.
Company Overview
Coal India Limited is the world’s biggest producer of coal, and it is one of the Maharatna public sector units in India. Its main activities involve coal mining and production through its subsidiaries in the states that contain coal deposits. Coal India Limited supplies coal to various sectors such as power, steel, cement, fertilizers, and many other industries.
Recent Quarter Results
Looking at the company’s financial highlights, Coal India Limited’s revenue has increased from Rs. 42,919 crore in Q1 FY26 to Rs. 46,255 crore in Q1 FY27, which has grown by 7.77 percent. The net profit has also grown by 0.71 percent from Rs. 8,788 crore in Q1 FY26 to Rs. 8,850 crore in Q1 FY27.
Coal India Limited’s revenue and net profit have grown at a CAGR of 13 percent and 20 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 35 percent and 28.2 percent, respectively. Coal India Limited has an earnings per share (EPS) of Rs. 50.6, and its debt-to-equity ratio is 0.12x.