Coal India Declares Rs 10.25 Interim Dividend Despite Profit Pressure in Q2 FY26

Coal India Limited (CIL), the state-run coal mining giant, has announced a second interim dividend of Rs 10.25 per share for FY2025-26, even as its quarterly results reflected a softening in profitability.

The company’s board approved the dividend at its meeting on October 29, 2025. With a face value of Rs 10 per share, the payout translates to 102.5% of the nominal value. The record date for determining eligible shareholders is November 4, 2025, and the dividend will be credited by November 28, 2025.

Earnings Under Pressure

For the quarter ended September 30, 2025, Coal India reported consolidated revenue of Rs 302 billion, down 1.53% year-on-year from Rs 306.7 billion in the same period last year. Although the figure marginally exceeded market expectations of Rs 295.87 billion, profitability took a sharper hit.

EBITDA declined 22.09% to Rs 67.16 billion from Rs 86.2 billion a year ago, missing the estimated Rs 78.27 billion. The EBITDA margin contracted by 584 basis points to 22.25%, compared to 28.09% in Q2 FY2025.

The contraction in margins underscores higher operational costs and subdued realizations in a quarter when coal prices and offtake were largely stable.

Also Read: Coal India Q1 FY26 Results: Maharatna PSU Stock Declares Rs 5.5 Dividend - Check Record Date | Republic World

Operational Context and Outlook

Coal India’s performance continues to hinge on production efficiency, supply to the power sector, and demand trends in e-auctions. Analysts suggest that maintaining profitability amid rising input and transportation costs could remain challenging in the near term.

While the dividend declaration offers some comfort to investors, the company’s financials highlight the pressure of balancing shareholder returns with operational sustainability.

As India transitions toward a diversified energy mix, Coal India’s ability to enhance output while aligning with cleaner energy commitments will be closely watched in the coming quarters.