Coal India share price surges 7% today; Here’s why

Synopsis:- PSU shares jumped nearly 7% after allowing foreign buyers to directly participate in coal e-auctions. The stock traded around ₹425, valuing it at ₹2.62 lakh crore. Company’s, Q2 revenue fell 3%, profit dropped 32%, and FY output reached 529 MT, about 60% of the annual target.

The shares of the prominent coal producer gained up to 7 percent in today’s trading session from its day high after the company permitted direct participation of foreign coal buyers in the e-auction.

With a market capitalisation of Rs 2.62 lakh crore, the shares of Coal India Ltd were trading at Rs 425.50 per share, increasing around 6.21 percent as compared to the previous closing price of Rs 400.35 apiece.

Global Market Access

The shares of Coal India Ltd have seen positive movement after opening its Single Window Mode Agnostic (SWMA) e-auctions to coal consumers from neighbouring countries such as Bangladesh, Bhutan, and Nepal. This move allows foreign buyers to directly participate, instead of routing purchases through Indian coal traders.

The decision, cleared by CIL’s Board, reflects a calibrated market expansion strategy while protecting domestic coal availability. According to company officials, opening SWMA auctions improves transparency, competition, and global market integration, marking a shift toward a more inclusive and market-linked auction framework.

Under the revised scheme, foreign buyers can register once, bid digitally, and make advance electronic payments in line with FEMA rules. Nepal-based buyers may pay in INR or USD, while others must pay in USD, with exports routed through notified logistics channels.

The company reported a weaker Q2FY26 performance, with revenue declining 3% from  Rs 31,182 crore to  Rs 30,187 crore, reflecting softer demand or pricing pressure. Net profit fell sharply by 32% to  Rs 4,263 crore, indicating margin compression and higher costs impacting overall profitability during the quarter.

Over the last one year, Coal India Ltd saw a sharp moderation in operating performance. Operating profit fell from ₹8,617 crore in Sep 2024 to ₹6,716 crore in Sep 2025, while OPM declined from 28% to 22%. This reflects margin pressure amid lower realisations, higher costs, and softer profitability despite stable sales volumes.

Coal India drew attention after its December update showed mixed trends. Production rose 4% year-on-year, indicating improved mining activity, but offtake fell 5%, reflecting softer demand. For FY-to-date, output reached 529 MT, down 2.2% from last year and about 60% of the 875 MT full-year target.

Coal India Ltd is India’s largest coal producer and a Maharatna PSU under the Ministry of Coal. It plays a critical role in meeting the country’s energy needs, supplying coal primarily to power, steel, cement, and other core industries across India.

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