Shares of state-owned Coal India Limited fell on Wednesday, April 2, 2025, following the company's decision to increase coal prices. The board approved a ₹10 per tonne price hike for both coking and non-coking coal, effective from April 16, 2025.
At 9:27 AM, Coal India shares were trading 1.11% lower at ₹393.25 apiece on the National Stock Exchange (NSE). The company's market capitalisation stood at ₹2,42,349.29 crores.
Coal India's price revision details
In an exchange filing, Coal India stated, "The board has approved an increase in the notified price of coal by ₹10 per tonne. The new price for non-coking and coking coal will be ₹20 per tonne across regulated and non-regulated sectors. This change will contribute to the corpus of CMPS-1998."
The price revision will take effect from April 16, 2025. Eastern Coalfields Limited (ECL), a subsidiary of Coal India, had previously increased the add-on price of coal in Jharkhand's Rajmahal area from ₹450 per tonne to ₹700 per tonne in November 2024.
The revision was made due to adjustments in logistics costs and was passed on to customers. The company estimated that this hike would generate additional annual revenue of ₹300 crores for ECL.
Coal India's production performance
Coal India produced 781.1 Million Tonnes (MT) of coal in FY25, which was 7% below its production target of 838 MT. However, the company's production increased by 1% compared to the previous financial year.
For March 2025, coal production declined 3.1% to 85.8 MT from 88.6 MT in March 2024. Several Coal India subsidiaries, including Western Coalfields Limited (WCL), Central Coalfields Limited (CCL), and South Eastern Coalfields Limited (SECL), reported lower production volumes.
Coal India's financial performance
Coal India reported a 17.5% decline in net profit to ₹8,491.2 crores in Q3 FY25, compared to ₹10,291.7 crores in the same period of the previous year. The company's revenue from operations dropped by 1% to ₹35,799.8 crores in Q3 FY25, compared to ₹36,154 crores in Q3 FY24.
Market analysts suggest that investors evaluating Coal India may consider these financial trends when deciding to invest in stocks.
Coal India's market position
Coal India contributes over 80% of India's total coal output. The company remains a significant part of the energy sector, supporting industries dependent on coal supply. The price revision and production data will likely impact investor sentiment in the short term.
At 12:00 PM on Wednesday, April 2, 2025, the shares of Coal India Limited were trading at ₹394.18 per share on the NSE.
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