Coal India Misses FY25 Production Target as March Output Drops 3.1%

As FY25 comes to a close, Coal India, the country’s largest coal producer, has fallen short of its annual production target. The state-run miner reported a decline in output for March 2025, alongside flat off-take growth for the full year.

Production Falls Short of FY25 Target

State-run Coal India Ltd. failed to meet its production target for the financial year 2025, with output in March declining on a year-on-year basis. The company reported a total production of 85.8 million tonnes (MT) for March 2025, a drop of 3.1% compared to the same month last year.

Among the company’s subsidiaries, Central Coalfields Ltd. and South-Eastern Coalfields Ltd. recorded a fall in monthly output, while other subsidiaries posted production growth ranging between 2% and 12% year-on-year.

Flat Offtake Dampens Annual Performance

Coal India’s total offtake for FY25 stood at 763.2 MT, registering a modest growth of 1.3% compared to FY24. The company reported an offtake of 69 MT for March 2025, up just 0.3% from the previous year.

The flat offtake and weaker-than-expected production figures point to operational headwinds in the latter part of the financial year, despite earlier projections of higher coal demand.

Recent Price Hike at Subsidiary Level

In February 2025, Coal India had announced a ₹300 per tonne price hike for coal sold through its third-largest subsidiary, Northern Coalfields Ltd. The price revision was aimed at improving realisations amid fluctuating demand and rising operational costs.

Coal India Share Price Performance

Shares of Coal India ended flat on April 1, 2025, closing at ₹398 apiece. The stock has remained largely range-bound in recent sessions, with the latest production and offtake data failing to trigger significant investor reaction.

Conclusion

Despite some subsidiaries showing growth, Coal India’s overall performance for FY25 fell short of expectations due to a decline in March production and muted off-take growth. Market participants will now watch for updates on FY26 guidance and the potential impact of the recent price hike on the company’s earnings trajectory.

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