Shares of state-owned Coal India fell as much as 3% to ₹381 on the BSE on Friday, even though the company reported a strong rise in profit for July–September, The Economic Times reported.
Consolidated net profit rose 57% to ₹6,547 crore, from ₹4,167 crore a year earlier. Revenue from operations grew 21% to ₹44,179 crore, from ₹36,553 crore, and total income rose 21% to ₹46,833 crore.
What the brokerages say
- **Jefferies** cut its target price to ₹460 from ₹500. It noted that coal stocks at power plants have fallen to about 6 days, against a ten-year average of 15, and said such periods have usually been followed by strong dispatch growth as generators restock.
- **JM Financial** cut its target to ₹438 from ₹458, citing a gradual fall in thermal power plant use, more captive mining and steady e-auction prices.
- **Motilal Oswal** kept its buy rating with a target of ₹450. It said operating earnings missed estimates because of higher production costs, and cut its 2026-27 EBITDA estimate by 5%, but expects volumes to rebound in the second half.
Why it matters
Coal India supplies most of the coal burned in India's power plants, so its dispatches track electricity demand. Jefferies pointed to a 31% rise in international thermal coal prices since February, to $152 a tonne, which could support the prices Coal India gets in its e-auctions.
The company plans to expand coal-washing capacity, and to move into renewable power, iron ore mining and overseas critical minerals, according to Motilal Oswal.
This article reports results and brokerages' views and is not investment advice.