Coal India Q2 Net Profit Falls 30% on Lower Revenue
Coal India reported a 30% year-on-year decline in net profit to Rs 4,354 crore for the second quarter ended September 2025, while revenue from operations slipped 3.2% to Rs 30,187 crore. The sharp drop in profitability reflects ongoing challenges in production, demand, and rising costs, even as the company remains a critical player in India's energy sector[1].
Coal India, the state-owned coal mining giant, announced a significant 30% year-on-year drop in its consolidated net profit to Rs 4,354 crore for the quarter ended September 2025, down from Rs 6,249 crore in the same period last year. Revenue from operations also declined by 3.2%, amounting to Rs 30,187 crore compared to Rs 31,182 crore previously[1]. The company’s financial performance was impacted by a combination of softer demand from the power sector, a reduction in both production and dispatches, and elevated inventory levels at thermal power plants[5]. Operational expenses rose due to higher wage bills, increased logistics costs, and regulatory compliance, further pressuring margins[5]. Despite these headwinds, Coal India declared a second interim dividend of Rs 10.25 per share for FY26, with a record date of November 4, 2025, offering some relief to shareholders[3]. The article highlights that the recent GST rate hike on coal from 5% to 18% will help the company utilize accumulated input tax credits, addressing previous issues with an inverted duty structure[3]. The share price dropped nearly 4% intraday following the results announcement, reflecting investor concerns over the company’s near-term outlook[3].
