Regulatory
HIGHTrigger: State governments can levy and increase mineral cess unilaterally; CIL has limited pricing power to pass this through FSA customers
Monitor: regulatory
Coal India Ltd: Why Is It Outperforming Nifty 500?
ActiveAverageRe-Entry
In , Coal India Ltd (Mining/Minerals) is outperforming Nifty 500 with +6.8% relative strength. Fundamentals: Average.
Coal India Ltd Key Facts
- PE Ratio
- 9.5x
- Market Cap
- ₹2,96,705 Cr
- PAT Growth YoY
- +14%
- Revenue Growth YoY
- +23%
- OPM
- 27.0%
- RS vs Nifty 500
- +6.8%
PE: Mid ExpansionDanger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
🌐FII stake decreased 1.2% this quarter
💰Trading 17% above estimated fair value
Key Risks
1. Regulatory
HIGH2. Labor
MEDIUM3. Commodity
MEDIUMKey Numbers
PAT Growth YoY
+14%
Inflection Up
Revenue YoY
+23%
Inflection Up
Operating Margin
27.0%
-400 bps YoY
PE Ratio
9.5
Current Price
₹481
Dividend Yield
5.50%
Fundamental Score
57/100
Average
3Y PAT CAGR
-1%
Market Cap
2.8L Cr
Valuation
Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for Coal India Ltd?
Earnings deceleration risks from management commentary
Labor
MEDIUMTrigger: PSU pay revision cycles recur every 5-10 years; next revision cycle could create similar provisioning burden; employee costs already at structurally high level
Monitor: labor
Commodity
MEDIUMTrigger: Spot coal prices globally have softened as European gas supply improved and Chinese demand moderated; domestic e-auction premiums track global coal price sentiment
Monitor: commodity
Logistics
MEDIUMTrigger: Rake availability constraints and mine-mouth logistics bottlenecks at Jharkhand/Odisha mines are recurring issues; building inventory signals demand absorption limits rather than supply-side recovery
Monitor: logistics
Regulatory
LOWTrigger: DISCOM financial health remains stressed in several states; elongating payment cycles increase working capital burden and credit risk for CIL
Monitor: regulatory
What Is Coal India Ltd's Management Saying?
Key quotes from recent conference calls
“Other expenses up 9% due to increase in Jharkhand Mineral-Bearing Land Cess from Rs 250 to Rs 450 per Tonne, impact Rs 3,635 Crore [Risk (regulatory): HIGH]”
“One time provision of pay scale upgradation of Executives: Rs 1,458 Cr; Reduction in Manpower: 4% (31.03.26: 2,12,066 & 31.03.25: 2,20,242) [Risk (labor): MEDIUM]”
“E-Auction Price FY 25-26: Rs 2,961.87 per Te vs FY 24-25: Rs 3,122.64 per Te, reduction of Rs 160.76 per Te, impact Rs -1,348 Crore [Risk (commodity): MEDIUM]”
“Coal Production FY 25-26: 768.19 MT vs target 875.24 MT; Coal Offtake: 744.88 MT vs target 900.24 MT; Inventory increase of 22.80 MT (21%) to 129.96 MT as on 31.03.2026 [Risk (logistics): MEDIUM]”
How Fast Is Coal India Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +23% | +7% | Inflection Up |
| PAT (Net Profit) | +14% | -1% | Inflection Up |
| OPM | 27.0% | -400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
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Frequently Asked Questions: Coal India Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Coal India Ltd's latest quarterly results?
Coal India Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +13.7% (turning around (inflection up))
- Revenue Growth YoY: +22.9%
- Operating Margin: 27.0% (volatile)
Is Coal India Ltd's profit growing or declining?
Coal India Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +13.7% (latest quarter)
- PAT Growth QoQ: +52.2% (sequential)
- 3-Year PAT CAGR: -0.7%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Coal India Ltd's revenue growth trend?
Coal India Ltd's revenue growth trend is turning around (inflection up).
- Revenue Growth YoY: +22.9%
- Revenue Growth QoQ: +33.1% (sequential)
- 3-Year Revenue CAGR: +6.8%
How is Coal India Ltd's operating margin trending?
Coal India Ltd's operating margin is volatile.
- Current OPM: 27.0%
- OPM Change YoY: -4.0% basis points
- OPM Change QoQ: 0.0% basis points
What is Coal India Ltd's 3-year profit and revenue CAGR?
Coal India Ltd's long-term compounding rates
- 3-Year Profit CAGR: -0.7%
- 3-Year Revenue CAGR: +6.8%
Is Coal India Ltd's growth accelerating or decelerating?
Coal India Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +29.3% bps
- Sequential Acceleration: 0.0% bps
- Margin Warning: Operating margins are under pressure
What is Coal India Ltd's trailing twelve month (TTM) performance?
Coal India Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹31,000 Cr
- TTM PAT Growth: -12.0% YoY
- TTM Revenue: ₹1.5 Lakh Cr
- TTM Revenue Growth: +3.6% YoY
- TTM Operating Margin: 27.9%
Is Coal India Ltd overvalued or undervalued?
Coal India Ltd appears overvalued based on our fair value analysis.
- Valuation Signal: Overvalued
- Current PE: 9.5x
- Price-to-Book: 2.5x
What is Coal India Ltd's current PE ratio?
Coal India Ltd's current PE ratio is 9.5x.
- Current PE: 9.5x
- Market Cap: 3.0 Lakh Cr
- Dividend Yield: 5.50%
How does Coal India Ltd's valuation compare to its history?
Coal India Ltd's current PE is 9.5x.
- Current PE: 9.5x
- Valuation Assessment: Overvalued
What is Coal India Ltd's price-to-book ratio?
Coal India Ltd's price-to-book ratio is 2.5x.
- Price-to-Book (P/B): 2.5x
- Book Value per Share: ₹193
- Current Price: ₹481
Is Coal India Ltd a fundamentally strong company?
Coal India Ltd is rated Average with a fundamental score of 57.03/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +22.9% (10% weight)
- PAT Growth YoY: +13.7% (10% weight)
- PAT Growth QoQ: +52.2% (10% weight)
- Margins stable (10% weight)
Is Coal India Ltd debt free?
Coal India Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹14,000 Cr
What is Coal India Ltd's return on equity (ROE) and ROCE?
Coal India Ltd's return ratios over recent years
- FY2024: ROCE 64.0%
- FY2025: ROCE 48.0%
- FY2026: ROCE 35.0%
Is Coal India Ltd's cash flow positive?
Coal India Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹43,000 Cr
- Free Cash Flow (FCF): ₹9,000 Cr
- CFO/PAT Ratio: 139% (strong cash conversion)
What is Coal India Ltd's dividend yield?
Coal India Ltd's current dividend yield is 5.50%.
- Dividend Yield: 5.50%
- Current Price: ₹481
Who holds Coal India Ltd shares — promoters, FII, DII?
Coal India Ltd's shareholding pattern (Mar 2026)
- Promoters: 63.1%
- FII (Foreign): 8.4%
- DII (Domestic): 22.8%
- Public: 5.6%
Is promoter holding increasing or decreasing in Coal India Ltd?
Coal India Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 63.1% (Mar 2026)
- Previous Quarter: 63.1% (Dec 2025)
- Change: 0.00% (stable)
How long has Coal India Ltd been outperforming Nifty 500?
Coal India Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.
Is Coal India Ltd a new momentum entry or an established outperformer?
Coal India Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the key risks in Coal India Ltd?
Coal India Ltd has 5 key risks worth monitoring
- [HIGH] Regulatory — State governments can levy and increase mineral cess unilaterally; CIL has limited pricing power to pass this through FSA customers
- [MEDIUM] Labor — PSU pay revision cycles recur every 5-10 years; next revision cycle could create similar provisioning burden; employee costs already at structurally high level
- [MEDIUM] Commodity — Spot coal prices globally have softened as European gas supply improved and Chinese demand moderated; domestic e-auction premiums track global coal price sentiment
- [MEDIUM] Logistics — Rake availability constraints and mine-mouth logistics bottlenecks at Jharkhand/Odisha mines are recurring issues; building inventory signals demand absorption limits rather than supply-side recovery
What did Coal India Ltd's management say in the latest earnings call?
In Q4 FY26, Coal India Ltd's management highlighted
- "Other expenses up 9% due to increase in Jharkhand Mineral-Bearing Land Cess from Rs 250 to Rs 450 per Tonne, impact Rs 3,635 Crore [Risk (regulatory)..."
- "One time provision of pay scale upgradation of Executives: Rs 1,458 Cr; Reduction in Manpower: 4% (31.03.26: 2,12,066 & 31.03.25: 2,20,242) [Risk (la..."
- "E-Auction Price FY 25-26: Rs 2,961.87 per Te vs FY 24-25: Rs 3,122.64 per Te, reduction of Rs 160.76 per Te, impact Rs -1,348 Crore [Risk (commodity)..."
Is Coal India Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Coal India Ltd may be worth studying
- Earnings growing at +13.7% YoY
- Cash flow is positive — CFO ₹43,000 Cr
What is the investment thesis for Coal India Ltd?
Coal India Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +22.9% YoY
Risk Factors (Bear Case)
- Margins under pressure
- Appears overvalued
- Key risk: Regulatory
What is the future outlook for Coal India Ltd?
Coal India Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: turning around (inflection up)
- Margin Trend: volatile
- Valuation: Overvalued
- Key Risk: Regulatory
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.