Coal India shares rise 5%, emerge as top Nifty gainer amid West Asia crisis: Here's why

Coal India shares rise 4%, emerge as top Nifty gainer amid West Asia crisis: Here's why

• Coal India shares rise amid West Asia energy supply concerns
• India's coal stocks reach record 210 MT, enough for 88 days
• Coal India’s CMPDI plans IPO, to divest 10% stake

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Shares of Coal India were the top Nifty gainer on March 12 by gaining over 5% as escalating tensions in West Asia threaten global energy supplies.

Shares of other energy majors such as Adani Enterprises, NTPC, and Power Grid Corp. of India also remained among the top gainers in the index, up 1.3%-2.8%.

On March 12, Nifty Energy index closed trading nearly 2% higher.

The government on Wednesday said it is fully prepared to meet any unprecedented surge in coal demand, with overall coal stocks at about 210 million tonne -- adequate for around 88 days.

This year, coal production and supply have outpaced consumption, leading to record-high stocks at thermal power plants and coal mines.

Supplies to the non-regulated sector are up nearly 14 per cent over the previous year.

Pithead coal stocks at mines of Coal India Ltd (CIL) stood at 106.78 million tonne (MT) on April 1, 2025, rising to 121.39 MT as of March 9 this year.

Further, there is around 6.07 MT of coal at the mines of Singareni Collieries Company Limited (SCCL), another 15.12 MT at captive, commercial mines, and about 14 MT in transit, totalling 156.58 MT, the highest ever, reported PTI.

This stock is in addition to the coal which is already available at power plants, which is around 54.05 MT as on March 9, 2026, adequate for nearly 24 days at the present rate of consumption.

"The overall coal stock available in the country is about 210 MT, which would be adequate for about 88 days," the coal ministry said in a statement.

Meanwhile, there are reports that Central Mine Planning and Design Institute Ltd (CMPDI), the consultancy and technical arm of Coal India, will launch its IPO soon, which further gave boost to CIL stock.

The company has already filed its draft red herring prospectus with the Securities and Exchange Board of India.

The proposed IPO is an offer for sale of up to 7.14 crore equity shares, representing a 10 per cent stake divestment by CIL.

Meanwhile, global brokerage Jefferies raised Coal India target price and lifted its FY26–28 earnings estimates by 1–4%, primarily due to higher e-auction premiums. “After 21% EPS decline over FY24–26E, we expect Coal India’s earnings trajectory to improve with 9% CAGR over FY26–28E,” Jefferies said.