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Coal India Q1 Profit Drops Over 20% Due to Lower Sales and Rising Expenses

Coal India Limited (CIL) reported a 20.2?cline in its consolidated net profit for Q1 FY26, falling to Rs8,734 crore from Rs10,944 crore in the same period last year. The drop was primarily due to reduced sales and increased expenses. Revenue from operations slipped by 4.4% year-on-year to Rs35,842 crore, while total income decreased to Rs37,458 crore from Rs39,388 crore in Q1 FY25.

Sales revenue declined to Rs31,880 crore from Rs33,170 crore year-on-year. Meanwhile, the company’s expenses rose slightly to Rs25,893 crore, up from Rs25,327 crore a year ago. Other income also saw a sharp 14.3?cline. Profit before tax fell by 17.2%, and PBIDT (Profit Before Interest, Depreciation, and Taxes) dropped by 12.4%.

In response, CIL’s Board declared the first interim dividend for FY26 at Rs5.50 per equity share, with a record date set for August 6, 2025. The dividend payout is expected by August 30. The profit slump comes at a time when thermal power generation and coal-based energy remain crucial for India's energy mix, especially amid growing power demand.