Coal India Approves Price Hike For Rajmahal Area To Rs 700 Per Tonne

Coal India Ltd. has approved a revision in the add-on price of coal for the Rajmahal area, a part of its subsidiary Eastern Coalfields Ltd. The price has been increased to Rs 700 per tonne from Rs 450 per tonne, according to an exchange filing.

The company's board of directors approved this price revision on Friday. The new rate will come into effect on Nov. 30.

With this revision, Eastern Coalfields is expected to generate incremental revenue of approximately Rs 300 crore per annum.

Earlier on Nov. 21, Coal India announced that it will allow coal supplies beyond annual contracted quantity to non-regulated sector customers in long term linkage auctions. The company has tweaked the policy provision for the same, to enable such customers to procure coal suiting their requirement, according to an exchange filing.

The decision, taken on Nov. 13, 2024, will be applicable from Tranche VIII linkage auction onwards, which is scheduled to commence shortly. The eighth tranche auction is to starts with cement and captive power plant sub-sectors, the filing said.

Coal India's revenue decreased by 6.42% to Rs 30,672 crore, compared to Bloomberg's estimate of Rs 31,207 crore during the second quarter of fiscal 2025. Its net profit declined 22.03% to Rs 6,275 crore, compared to the Bloomberg estimate of Rs 8,444 crore.

Shares of Coal India closed 0.29% higher to Rs 416.40 apiece, compared to a 0.91% decline at benchmark NSE Nifty 50 on Friday. It has risen by 21.63% in the last 12 months and by 10.74% on a year-to-date basis.

Twenty of the 25 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 28.7%.