Coal India Q2 FY27 Results Analysis: PAT Jumps 57%, Rs. 10.25 Interim Dividend (COALINDIA)

Coal India Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 44,178.74 Cr (+20.86% YoY) and PAT growth of +57.12% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Coal India delivered 20.86% YoY revenue growth and 57.12% PAT growth on a restated base, with company-basis EBITDA margin up ~135 bps YoY to 25.24% despite a ~526 bps QoQ compression from inventory drawdown and wage provisions. Cash generation was the standout: H1 CFO of Rs.31,037.96 Cr was 2.02x PAT with FCF of Rs.23,198.28 Cr, supporting a Rs.10.25/share second interim dividend. Supplies are on track for the 850 MT FY27 target while the 815 MT production target requires sharp H2 acceleration.

Key Investment Insights

Key Positives

• Revenue from operations grew 20.86% YoY to Rs.44,178.74 Cr on a restated base
• Consolidated PAT grew 57.12% YoY to Rs.6,547.43 Cr; owners' PAT +53.00% YoY
• Company-basis EBITDA rose 27.72% YoY to Rs.11,152.57 Cr with margin up ~135 bps YoY to 25.24%
• Normalized PAT grew 67.85% YoY to Rs.6,872.45 Cr after stripping one-time items
• H1 CFO of Rs.31,037.96 Cr was 2.02x PAT; FCF of Rs.23,198.28 Cr
• Inventories fell Rs.4,280.35 Cr from March 2026 with ~63 MT of pithead stock liquidated in H1
• Q2 supplies of 186.04 MT grew 12.04% YoY, tracking 21.89% of the 850 MT FY27 target
• 2nd interim dividend of Rs.10.25/share declared, a 96.9% payout of Q2 owners' PAT

Risk Factors

• Company-basis EBITDA margin compressed ~526 bps QoQ to 25.24% from Q1's 30.50%
• Inventory drawdown charge of Rs.3,052.23 Cr vs Rs.1,330.80 Cr a year ago depressed margin
• NCWA-XII estimated wage provision of Rs.499.29 Cr charged to employee costs
• Solar segment turned to a loss of Rs.9.15 Cr PBIT in Q2 on Rs.1,772.74 Cr of segment assets
• Board/committee composition non-compliance from independent-director shortfall flagged by auditors
• Q1 production of 169.63 MT was ~21 MT below the FY27 production target pace