Why Coal India Share Price is Rising

Good Q4 FY26 Results

Shares of Coal India surged 4% after the company reported its Q4 FY26 results.

The company's revenue increased by 5.8% year-over-year (YoY) to Rs 464.9 billion (bn), up from Rs 436.9 bn in the same period last year. The growth was driven by higher average realisation, even though overall sales saw a slight decline.

The average realisation was higher by 6% YoY to Rs 2,289.58 per tonne while overall sales were down 1% at 198.83 tonne. EBITDA stood at Rs 179.17 bn, up 12%.

Coal India reported a net profit of Rs 108.39 bn in Q4 FY26, up 11.15%, compared to Rs 97.51 bn in the same period last year.

Coal India's board of directors have announced a final dividend of Rs 5.25 per equity share for the FY26, subject to shareholders approval.

This was the main reason for the share price to surge.

What Next for Coal India?

The company aims to improve the quality of its coking coal and will be setting up eight new coking coal washeries at an estimated capital outlay of Rs 330 bn.

This is expected to be operational by FY30, which would have a combined washing capacity of 21.5 million tonnes per Year (MT/Y). Coking coal is a vital ingredient in steel making.

Further, Coal India is exploring opportunities to acquire critical mineral assets both domestically and overseas in mineral-rich countries such as Australia, Argentina, and Chile. The company has also signed an MoU with Curtin University to collaborate in the critical minerals sector.

Coal India has planned to invest around Rs 800 bn by FY30, about Rs 200 bn per year, to fund its capex. The company is diversifying with an aim to be a net-zero entity through the installation of 3,000 MW renewable solar capacity by FY28.

India's clean energy transition will remain the biggest challenge for Coal India in the next few years. A positive is that the company is diversifying, including renewable energy and critical minerals.

How Coal India Shares Have Performed Recently

In the past five trading sessions, Coal India shares jumped 5%, extending their one-month rally to 25%. Over the past six months, the shares have been up 19%.

The stock touched its 52-week high of Rs 475.95 on 13 March 2026 and its 52-week low of Rs 368.55 on 28 August 2025.

About Coal India

The company, along with seven wholly owned coal producing subsidiaries and one planning and consultancy subsidiary, produces around 80% of the coal in India and accounts for about 75% of the supply to the country's thermal power generating capacity.

It's a Maharatna company, a privileged status conferred by Government of India to select state owned enterprises to empower them to expand operations and emerge as global giants.

The company mines many types of coal and supplies to power producers and steel manufacturers. With its market leading position, the company sits on a huge pile of cash. It uses the cash reserve to pay dividends consistently.

It has declared dividends consistently since 2004. Here's a table showing the entire history of dividends paid by Coal India.

For more details, see the Coal India fact sheet and quarterly results.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy investing.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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