Coal India shares up 5% on Q4 results, dividend news; MOFSL sees 12% upside

Coal India has informed the exchanges that its board of directors has declared a final dividend of ₹5.25 per equity share of face value ₹10 for the FY26

SI Reporter New Delhi

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Coal India Share Price: Shares of Maharatna company Coal India were ruling higher on the bourses in an otherwise volatile market on Tuesday, April 28. The company’s stock rose as much as 4.72 per cent to ₹473.90 apiece during early trade after the world’s largest coal miner reported its financial results for the fourth quarter of 2025–26 (Q4FY26) as well as for the full year FY26. Sentiment was further buoyed by the company’s announcement of dividend rewards for its shareholders.

Although the stock trimmed gains partially, it continued to trade higher on the bourses. At 09:37 AM, Coal India shares were trading at ₹471.65 apiece, up 4.23 per cent from the previous close of ₹452.50 per share on the NSE. The benchmark Nifty 50, meanwhile, was trading with gains of 18 points, or 0.08 per cent, at 24,111 levels.

So far during today’s trade, a combined total of nearly 8.1 million equity shares of Coal India, estimated to be valued at around ₹379 crore, have exchanged hands on the BSE and NSE. The company’s market capitalisation stood at ₹2,90,849.96 crore.

Coal India Q4 results, dividend announcement

Earlier on Monday, April 27, after market hours, the Maharatna company informed exchanges that its net profit for the quarter ended March 31, 2026, rose to ₹10,849 crore, reflecting a year-on-year (YoY) jump of 11.15 per cent from ₹9,751.6 crore reported in the same quarter of the corresponding fiscal year.

The company’s consolidated revenue from operations increased 5.75 per cent year-on-year to ₹46,490 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) rose to ₹12,672 crore, with margins remaining flat at 27 per cent, according to the exchange filing.

Besides this, the company informed exchanges that its board of directors has, inter alia, declared a final dividend for the financial year 2025–26 at ₹5.25 per equity share on a face value of ₹10, as recommended by the Audit Committee of CIL at its meeting. The payment of the final dividend for FY26, Coal India said, shall be subject to shareholder approval at the ensuing AGM.

Motilal Oswal retains ‘Buy’

Following the announcement of results, brokerage Motilal Oswal Financial Services (MOFSL) has reaffirmed its bullish stance on the stock. According to the brokerage, at CMP the stock is trading at 5x FY28E EV/Ebitda.

MOFSL has reiterated its ‘Buy’ rating with a target price of ₹530, valuing the stock at 6x FY28E EV/Ebitda. The assigned target price implies an 11.83 per cent upside from the current market price.

Commenting on the results, the brokerage noted that the company delivered a decent performance, mainly supported by higher e-auction volumes, which accounted for around 14 per cent of total volumes. Premium stood at 36 per cent in Q4FY26.

MOFSL expects Coal India to post a 4 per cent volume CAGR over FY26–28E, while a higher share of e-auction volumes with better premium will support overall NSR and margins. This is expected to translate into a CAGR of 5 per cent and 12 per cent in revenue and Ebitda over FY26–28E, respectively.

“The company’s focus on increasing coal-washer capacity will improve its market share in domestic coking and non-coking coal. Further, management remains focused on expanding its coal mining operations, which will be funded through internal accruals,” said the brokerage in its report. =============================================

(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.)

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First Published: Apr 28 2026 | 9:53 AM IST