Coal India ↗

CIL is promoted and majorly owned by GoI, which holds 63.13% ownership and Life Insurance Corporation of India holds 11.05% ownership as on March 31, 2026. CIL plays a strategic role in meeting India’s energy requirement as evident from its ~74% contribution to total domestic coal production in FY26 and FY25. CIL’s importance to the GoI is further corroborated by large dividend and taxes paid by it. CIL also has two Government Nominee directors on its board.

CIL has over five decades of established track record of operations in coal mining and holds ~49% of total proven coal reserves of India, with production accounting for 74%-80% of domestic coal production in FY24-FY26. In FY26, CIL produced 768.10 MT against 781.06 MT in FY25. Going forward, production target for FY27 is 815 MT, which is expected to further strengthen CIL’s positioning. Government has started auctions for commercial mining by private sector players from 2020. Coal production by

The company’s TOI reduced by ~1% in FY25 compared to FY24 and by ~5% in 9MFY26 from 9MFY25. Profit before interest, lease rentals, depreciation, and taxation (PBILDT) margin, though moderated, remained healthy at 28.94% in 9MFY26. This moderation was owing to decrease in mining activities and off-take owing to elongated monsoon, moderation in e-auction premium in 9MFY26 and impact of provision for pay-scale upgradation of ₹2,201 crore expensed in Q3FY26. The capacity utilisation though

The company has a strong financial risk profile marked by high net worth base and low debt levels of ~₹14,750 crore as on December 31, 2025. The company’s overall gearing remained consistently below 0.20x for past five years. Its debt protection metrics are strong marked by PBILDT interest coverage of 33.46x and total debt to gross cash accruals (TD/GCA) of 0.54x as on 2 CARE Ratings Ltd. Press Release December 31, 2025.

CIL has a strong liquidity position with unencumbered cash and cash equivalents of ~₹45,000 crore as on December 31, 2025. CIL generally receives advance payment for sales under e-auction and sales made through FSAs, which aids its cash flow from operations and results in comfortable operating cycle. CIL’s debt repayment obligations are on the lower side against annual cash accruals. Accordingly, CIL is expected to generate sufficient accruals to meet its capex requirements and dividend payouts.

The company has annual capex target of ₹16,000 crore – ₹16,500 crore for FY27-FY29, mainly towards increasing its coal beneficiation capacity, coal mining capacity, first mile connectivity (FMC) projects and development of rail infrastructure for improving evacuation capabilities apart from investments towards solar power, thermal power capacity and revival of fertiliser plants. This capex shall be comfortably funded from internal accruals and available liquidity and accordingly reliance on debt

The company had high contingent liabilities of ₹56,471 crore as on March 31, 2025 (₹54,419 crore as on March 31, 2024) against its tangible net worth as on even date. Contingent liabilities continued to be on the higher side and materialisation of such liabilities shall lead to significant cash outflow and remain a key monitorable. This apart, materialisation of liability towards the Supreme Court’s verdict, considering power of State Government to tax mineral