Coal India Shares Drop for 2nd Day as Production Growth Lags Behind FY25 Target

Shares of Coal India declined for the second consecutive day due to concerns over its ability to meet the FY25 production target of 838 MT. The company’s production is lagging, and a 37% increase is needed in Q4.

Coal India’s Subsidiaries Underperform

As of January, Coal India had produced 621.1 MT of coal, 1.8% higher than the same period last year, but still only 74.1% of the annual target. To meet the target, production must increase by 37% in the final quarter of FY25. As per news reports five of Coal India’s subsidiaries have missed their production targets for the first nine months of FY25.

Coal India’s January Production Declines 

Coal India Ltd (CIL) reported a 0.8% year-on-year decline in its coal production for January, with output falling to 77.8 million tonnes (MT) from 78.4 MT in the same month last year. This marks the company’s first monthly production drop.

Despite this, CIL remains optimistic about a strong recovery in the final quarter of FY25.

The company’s output growth from April 2024 to January 2025 stands at 1.8%, reaching 621.1 MT compared to 610.3 MT in the same period last year. CIL’s coal offtake in January increased by 2.2% to 68.6 MT from 67.1 MT year-on-year, and for the fiscal year-to-date, it has seen a 1.8% rise in offtake, totalling 630.2 MT.

The primary contributors to the production decline in January were South Eastern Coalfields Ltd (SECL) and Bharat Coking Coal Ltd (BCCL), with SECL’s output falling by 11.8% to 17.4 MT from 19.7 MT in January 2024.

Share Price Performance

As of February 3, 2025, Coal India Ltd (CIL) experienced a significant decline in its share price, dropping by ₹12.00 or 3.11%, closing at ₹373.30 compared to ₹385.30 the previous day. During the day, the stock traded between ₹366.50 and ₹384.15, with an indicative close of ₹371.74. This decline follows a 2.7% drop in the previous session.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.