Coal India shares burn 4% on weak February business update

With Coal India achieving only 83 percent of its annual production target by February, investors remain cautious about the company falling short of its FY25 goal by year-end.

Moneycontrol News

March 03, 2025 / 10:14 IST

Coal India shares have fallen over 21% in the last one year.

26 Aug, 2025 12:21

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Shares the state-miner Coal India tumbled 4 percent on March 3 as the company's business update for February, marked by a fall in production, dented investor sentiment.

At 10.08 am, shares of Coal India were trading at Rs 357.95 on the NSE. The stock has lost over 21 percent of its value in the past one year.

Coal India’s production in February declined 0.8 percent on year to 74.1 MT, bringing its full-year output to 695.3 MT, up 1.5 percent on year. However, the full-year output as yet reflects just 83 percent of Coal's India's FY25 target of 838 MT target. This means that to meet its annual guidance, the company must produce 142 MT in March, the final month of the financial year, a feat the Street remains skeptical about.

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Offtake also slipped 4.8 percent on year to 62.1 MT in February, while year-to-date offtake rose a meagre 1.3 percent to 693.4 MT. Brokerage firm Morgan Stanley flagged the fall in offtakes as a "key negative", attributing it to sluggish power demand and inventory digestion concerns, which could further impact volumes.