Coal India Limited plays an important part in meeting India’s growing energy needs, providing the majority of the coal used in industries, power generation, and daily consumption.
As the largest player in this space, its stock often responds to shifts in demand, updates in government policy, and changes in global commodity markets. For investors, factors such as dividends, revenue growth, and cost management provide important signals.
In this article, we will review Coal India’s recent stock performance and share insights on what the future may hold.
Current Stock Snapshot
As of September 2025, the Coal India share price is trading close to ₹380. Over the last year, it has moved within a broad range, with the lowest point near ₹349 and the highest around ₹518.
At the start of September, the stock showed steady momentum, rising for four days in a row from about ₹374.8 to ₹380.1, which equals an increase of roughly 1.5 percent.
While this short-term performance reflects positive sentiment, the overall monthly trend still records a small decline of nearly 1.3 percent, highlighting both strength and caution in its current position.
Recent Financial Performance
Coal India’s first quarter of fiscal 2026 was held back by reduced earnings and activity across the board. Consolidated net profit slipped about 20% year-on-year to ₹8,734 crore, while revenues eased by around 4% to ₹35,842 crore.
Higher depreciation and finance costs dented margins despite minor cost savings. EBITDA also showed stress, and coal production edged down roughly three percent to 183 million tonnes.
On top of that, the board declared a first interim dividend of ₹5.50 per share, with payment set for late August.
Valuation & Fundamentals
With that base established, we can now look at the valuation metrics and financial strengths that shape Coal India’s present position.
1. Price-to-Earnings (P/E) Ratio
Coal India’s trailing P/E ratio currently stands around 7 times earnings, indicating investors are paying ₹7 for every ₹1 of profit earned over the last year. That compares sharply with peers whose P/Es often range around 19, highlighting Coal India’s valuation as relatively low and potentially offering a value opportunity in its sector.
2. Price-to-Book (P/B) Ratio
The Price‑to‑Book ratio shows how much investors pay for each rupee of a company’s net assets. Coal India’s P/B stands near 2.34 to 2.36, meaning the stock trades at over twice its book value per share. That puts its valuation in line with or slightly above industry norms and indicates moderate market expectations.
3. Dividend Yield
The company delivers a solid dividend yield, staying close to 7 percent most of the time. Depending on the source, it ranges from roughly 6.9 percent to about 8.5 percent. That reliable income boosts overall returns.
4. Return on Equity (ROE)
Return on Equity measures how well Coal India turns shareholder equity into profit. As of September 2025, Coal India delivered a consolidated ROE of around 35.32 percent, reflecting strong efficiency in using equity for earnings.
5. Return on Capital Employed (ROCE)
Coal India’s most recently reported ROCE stands around 24.48 percent. That indicates the company is generating nearly ₹49 of earnings before interest and tax for every ₹100 of capital it deploys.
6. Intrinsic Valuation Estimates
Intrinsic value estimates says that Coal India could be priced below its true worth in the current market. Independent assessments place fair value near ₹450 a share, which is above recent trading levels of about ₹380. This difference points to possible gains for long-term investors. Checking this kind of information with trusted stock market screeners also makes it easier to compare Coal India’s numbers against sector averages and overall market trends, helping you make more informed decisions.
Conclusion
Coal India continues to hold a strong position with consistent earnings, attractive dividends, and sound valuations. Before investing, understand your goals and risk appetite.