Coal India Q2 Profit Falls 30% YoY Amid Mixed Broker Views
Coal India reported a 30% year-over-year decline in Q2 FY26 net profit to Rs 4,354 crore due to increased expenses and lower revenues. Despite weak earnings, the company declared a Rs 10.25 interim dividend. Broker recommendations remain mixed with Motilal Oswal advising 'Buy', Elara recommending 'Accumulate', and Choice Broking maintaining a 'Sell' stance. Share price showed volatility but modest gains post-announcement.
Coal India's Q2 FY26 earnings revealed a 30% drop in net profit to Rs 4,354 crore, driven by higher operating expenses and reduced revenue streams. The company attempted to maintain shareholder confidence by announcing an interim dividend of Rs 10.25 per share, payable by late November 2025. Investor reactions were mixed, as brokerage firms differed in their outlooks: Motilal Oswal favored buying the stock, Elara suggested accumulating shares, while Choice Broking held a negative position to sell. Despite the profit decline, Coal India’s share price showed some intraday volatility, trading between ₹381.65 and ₹399.30 on the NSE, but the stock generally declined around 1.9% following the results announcement. The stock’s price-to-earnings ratio remains comparatively low versus sector averages, pointing to some valuation appeal. Nonetheless, the company's weakening profit profile amid rising costs continues to weigh on investor sentiment, causing caution in portfolio positioning. The mixed views from analysts reflect uncertainty about Coal India’s near-term growth prospects despite steady dividend payouts, placing importance on upcoming market and operational developments for future investment decisions.
