Coal India rises 4% post Q4 show; brokerages upbeat on better price hike realisations

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26 Aug, 2025 12:21

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Coal India’s shares gained over 3.5 percent in the morning trade on Wednesday. Investors reacted to the results for March quarter posted by the firm, which included a one-time gratuity payout.

The stock touched an intraday high of Rs 292.30 and an intraday low of Rs 277.75.

Brokerage house Nomura has maintained its neutral call on the stock with a target of Rs 332 apiece. It observed that the company had a strong March quarter as price hikes in January materialized. Its realisation on fuel supply agreement front surprised and has driven the sizeable earnings beat. In fact, the revenue was 9 percent above consensus estimates.

Meanwhile, Jefferies has also maintained its buy call on the stock with a target of Rs 350 per share. It said that the operating profit, ex-gratuity provision) was up 124 percent year on year and 22 percent ahead of estimates.

The FSA average selling price (ASP) was also ahead of estimates as gains from price hikes were better than expected. Further, the e-auction ASP surprised positively. It is upbeat on the stock as stronger ASP should drive strong earnings.

The company reported a fall of over 52 percent in the net profit for March quarter at Rs 1,295 crore. The company had posted a profit of Rs 2,919 crore for the corresponding quarter of last year. Its revenues fell 16 percent at Rs 26,909 crore against Rs 23,243 crore year on year.

A steep increase in its gratuity payout/employee benefit expenses at Rs 16,654 crore dragged its results. Other income and expenses reported by the firm were at Rs 2,000 crore and Rs 1,261 crore, respectively.

The firm also reported weak operational performance as operating profit of Rs 195.5 crore against Rs 3,460.5 crore year on year. The operating margin has also contracted to 0.7 percent against 14.9 percent in the previous year.

At 09:57 hrs Coal India was quoting at Rs 288.90, up Rs 6.75, or 2.39 percent, on the BSE. It touched an intraday high of Rs 292.30 and an intraday low of Rs 277.75.