Motilal Oswal's research report on Coal India
Revenue for 2QFY26 came at INR302b (-2% YoY and -16% QoQ), against our estimate of INR299b. The decline was mainly led by muted volume. Adj. EBITDA (excluding OBR exp) stood at INR58.5b (-18% YoY and -48% QoQ), against our estimate of INR85b during the quarter. EBITDA was impacted primarily by higher other costs (+22% YoY). EBITDA/t declined to INR357 (-16% YoY and -39% QoQ) vs our estimate of INR518/t. APAT came in at INR43.5b (-31% YoY and -50% QoQ), against our estimate of INR63b during the quarter.
Outlook
At CMP, the stock is trading at 4.2x EV/EBITDA and 1.8x P/BV on FY27E. We reiterate our BUY rating with a TP of INR440 (premised on 4.5x EV/EBITDA on Sep’27 estimate).
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