Coal India Limited — Cyborg Score 6/10

Solid
Coal Mining & Energy

Strategic Profile

The company's major consumers are the power and steel sectors, with additional customers from cement, fertilizers, and brick manufacturing. Coal India provides a strong dividend yield of 6.48% with a 3-year return on equity (ROE) of 48.7% and maintains a healthy dividend payout of 45.1%. Recent production dynamics show 2.6% growth in production at 79.8 million tons in January 2026, though coal offtake declined 4.7% to 66.3 million tons.

Cyborg Score Rationale

Coal India has a market cap of ₹2,54,028 Cr, supported by strong dividend yields and substantial profitability. However, the company's consolidated net profit declined 30.32% in Q2 FY26 compared to Q2 FY25, and recent production faces headwinds. The company maintains a monopoly position in India's coal sector with government backing, though energy transition risks persist.

Top Insights

  • Coal India has delivered poor sales growth of 8.33% over the past five years.
  • Coal India reduced its stake in subsidiary Bharat Coking Coal from 100% to 90% following the January 2026 IPO, generating capital.
  • The company declared its 3rd interim dividend of Rs5.50/share with record date February 18, 2026.
  • As of February 16, 2026, Coal India has 222.69K employees.

Named Competitors

  • Singareni Collieries — Regional coal producer in India
  • Bharat Coking Coal — Coking coal specialist (now 90% subsidiary of Coal India)
  • NTPC Coal — Integrated power and coal operations

Recent Developments

  • (February 2026) Third interim dividend declared at Rs5.50/share
  • (January 2026) Bharat Coking Coal subsidiary IPO completed, stake reduced to 90%
  • (January 2026) Coal production grew 2.6% to 79.8 million tons; coal offtake declined 4.7%

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