Coal India Q2 Review: Motilal Oswal Maintains 'Buy' Despite Muted Results — Here's Why

Coal India's revenue for Q2 FY26 came at Rs 302 billion (-2% YoY and -16% QoQ), against our estimate of Rs 299 billion. The decline was mainly led by muted volume. Adjusted Ebitda (excluding overburden removal exp) stood at Rs 58.5 billion (-18% YoY and -48% QoQ), against the brokerage's estimate of Rs 85 billion during the quarter. Ebitda was impacted primarily by higher other costs (+22% YoY)..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Coal India Ltd. delivered muted performance, mainly due to weak volumes, where e-auction volumes accounted for ~10% of total volumes and premium stood at 55% in Q2 FY26. For FY26, we trimmed our revenue/Ebitda/APAT estimates by 4%/8%/6%, respectively, as we incorporate the muted volumes of H1 FY26 and subdued near-term outlook. We expect e-auction volume and premium to recover in H2 FY26, supported by demand recovery from the non-FSA sector. We expect Coal India to clock a 3% volume CAGR over FY25-28. This is expected to translate into a CAGR of 5% in revenue and 7% in Ebitda. The company’s focus on increasing coal-washer capacity will improve its market share in domestic coking/non-coking coal. Further, management remains focused on expanding its coal mining operations, which will be funded through internal accruals. Coal India may, however, consider raising debt to undertake strategic diversification projects such as RE facilities and coal gasification. At CMP, the stock is trading at 4.2x EV/Ebitda and 1.8x P/BV on FY27E. We reiterate our Buy rating with a target price of Rs 440 (premised on 4.5x EV/Ebitda on Sep’27 estimate)..Click on the attachment to read the full report:.Coal India Q2 Results: Profit Down 50%, Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Coal India Q2 Review: Motilal Oswal Maintains 'Buy' Despite Muted Results — Here's Why

Coal India posted big miss on earnings due to high costs; hence Motilal Oswal cuts estimates for FY26.

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