Coal India's Profit Margins Narrow in a Mixed Quarter
The state-run miner posted a modest yearly revenue increase, but profitability declined significantly from the previous quarter.
Coal India's Q1 FY27 results show revenue growth of 7.8% year-on-year, but profit fell sharply quarter-on-quarter, squeezing net profit margins.
Coal India delivered a mixed set of earnings for the first quarter of FY27, with steady yearly sales growth overshadowed by a sharp quarterly drop in profitability. While revenue increased compared to the same period last year, profit margins contracted, highlighting cost pressures or operational challenges in the June quarter.
The company's revenue for Q1 FY27 stood at ₹46,255 crore, a 7.8% increase from Q1 FY26. However, profit after tax (PAT) grew a mere 0.7% year-on-year to ₹8,850 crore. This disconnect is more pronounced sequentially: profit fell 18.9% from the robust ₹10,908 crore posted in Q4 FY26, even as revenue dipped only slightly by 0.5%. Consequently, the net profit margin compressed to 19.1%, down from 23.5% in the prior quarter and 20.5% a year ago.
A look at the last five quarters shows volatile profitability, with margins ranging from a high of 23.5% to a low of 14.1%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 46,254.8YoY +7.8% | 46,490.03 | 42,919.20 |
| Profit (₹ Cr) | 8,849.81YoY +0.7% | 10,907.79 | 8,787.84 |
| Net Profit Margin (%) | 19.1YoY -6.8% | 23.5 | 20.5 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 19.8%, with TTM profit at ₹31,186 crore.
- The company maintains a strong balance sheet, evidenced by a high return on equity (ROE) of 28.1% and minimal debt, with a debt-to-equity ratio of just 0.12.
- The stock trades at a P/E of 8.9, a significant discount to the industry average of 15.5.
The immediate challenge for the world's largest coal producer is to defend its profitability in the coming quarters, even as it continues to secure the nation's energy needs.
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· COALINDIA
(BSE)
ISIN: INE522F01014
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