Coal India Q1 FY26 Results (NSE: COALINDIA)
Signal: Margin pressure
The read
Q1FY26 consolidated revenue grew 7.8% YoY to ₹46,254 Cr, but OPM contracted 400bps to 24.8% as contractual and other expenses outpaced revenue, while employee cost was well controlled; PAT rose modestly 1.2% to ₹8,850 Cr, cushioned by a large stripping activity reversal credit (₹1,830 Cr) and higher other income; standalone is a holding entity with minimal op income; board declared interim dividend ₹5.50/share.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹46,254 Cr | 7.8% | -0.5% |
| EBIT | ₹11,406.32 Cr | -4.1% | |
| Net profit | ₹8,849.81 Cr | 1.2% | |
| EPS | ₹14.36 | 0.6% | |
| EBIT margin | 24.8% |
P&L walk
Topline grew 7.8% YoY, but OPM contracted 400bps to 24.8% as input/mix shift and higher other expenses overpowered revenue gains.
Segments
Coal segment dominates (99.9% of revenue) with PBIT declining 4.1% YoY to ₹11,408 Cr, dragging group performance; solar energy segment is negligible.
Key positives
- Revenue grew 7.8% YoY despite a 0.5% QoQ dip, showing resilient coal demand.
- Employee cost grew only 0.4% YoY, improving cost-to-revenue ratio by 170bps.
- Stripping activity reversal of ₹1,830 Cr boosted reported OPM; structural cost management visible.
- Interim dividend declared at ₹5.50/share (55% of face value), consistent with high dividend yield history.
Key concerns
- OPM contracted 400bps YoY to 24.8%, the 4th consecutive quarter of YoY margin compression.
- Contractual expense and 'Other Expenses' grew sharply, outpacing revenue growth; pressure on operating leverage.
- Coal segment PBIT declined 4.1% YoY despite 7.8% revenue growth, implying cost-side drag.
- EPS growth (0.6%) slightly lagged PAT growth (1.2%), indicating minor dilution.
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