Shares of Coal India dropped 2% in early trade on Tuesday, July 28, after most global brokerages cut target prices on the stock after the state-run coal miner announced April-June quarter results for fiscal 2026-27 (Q1FY27). The Kolkata-headquartered PSU missed most June quarter earnings estimates by global brokerages. Jefferies emerged as the only firm that still holds a bullish view on the stock. Coal India's net profit was flat in the quarter-under-review, while revenue rose 8% year-on-year.
On Tuesday, shares of Coal India opened at Rs 422.90 against a previous close of Rs 427.50 and extended losses by upto 3% hitting an intraday low of Rs 417.50 apiece on the NSE. The stock last traded 3.06% lower at Rs 414.40 apiece on the NSE. This compares to a 0.01% rise in the Nifty 50 benchmark. The PSU stock has dropped 4% in one month, 4.52% on a year-to-date basis, and 11% in the last one year. The company commands a market cap of Rs 2,55,321.83 crore.
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Coal India Share Price Intraday
Coal India Q1 Results
Coal India Ltd. saw a 0.6%% uptick in its net profit to Rs 8,852 crore, as per financial results data for the quarter ended June 30, according to an exchange filing from the firm on Monday. The coal miner reported a profit of Rs 8,797 crore in the previous fiscal for the same aforementioned period. The PSU declared an interim dividend of Rs 5.50 per share. The record date for the determining the eligibility of shareholders is Jul 31, 2026. The dividend amount will be paid out on or before Aug. 25, 2026. The PSU's revenue saw a 7.8% increase to Rs 46,255 crore on a year-on-year basis compared to Rs 42, 919 crore.
Coal India Misses Q1 Estimates
While Coal India's valuation appears inexpensive across the board, soft operating metrics, muted realizations, and looming cost headwinds have prompted most analysts to maintain a cautious stance. Despite an EBITDA miss, Jefferies remains the sole major bull, citing strong structural demand for power. Conversely, brokerages Morgan Stanley, Citi, and JPMorgan have all highlighted the lack of near-term re-rating triggers, keeping their ratings neutral while trimming target prices.
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Jefferies remains optimistic despite acknowledging the company's EBITDA miss. Looking ahead, Jefferies notes that Coal India's overall volume growth remains heavily hinged to domestic power demand. It maintain a 'buy' rating on the stock and has pegged a target price of Rs 500. On the other hand, Citi has cut the target price to Rs 430 from Rs 440 and sees limited upside potential for e-auction prices, primarily due to elevated coal inventory already present in the system. While inexpensive valuations provide a floor and limit downside risk, Citi lacks visibility on what could trigger upward momentum.
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