Coal India Limited (CIL), the world’s largest coal producer and a Maharatna PSU, released its Q2 FY26 results on October 28, 2025. The numbers present a mixed bag – while profits declined, the company reaffirmed its commitment to rewarding shareholders through a robust dividend payout. Here’s everything investors and stakeholders should know:
Financial Performance at a Glance
In the quarter ending September 2025, Coal India’s net profit dropped sharply by 32% year-on-year to ₹4,262.6 crore. Despite the dip, the company maintained revenue resilience, reporting sales of ₹30,200 crore, only a marginal fall of 1.5% compared to last year. However, operational performance took a hit—EBITDA came in at ₹6,716 crore (down 22%), and EBITDA margins fell to 22.25%, reflecting rising input and operational costs.
Dividend Offer: Generous Interim Payout
In a move that will please many investors, the Coal India board declared its second interim dividend for the fiscal: ₹10.25 per share (on a face value of ₹10).
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Record Date: November 4, 2025
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Dividend Payment By: November 28, 2025
This means any investor holding shares at the close of business on the record date is eligible to receive the dividend “offer.” Even with declining profits, Coal India is maintaining its stellar track record of sharing profits directly with its wide investor base, including retail and institutional shareholders.
Why Profits Declined
The drop in profits is mainly attributed to higher wage outgo, increased overburden removal expenses, and ongoing investments in infrastructure modernization. Coal offtake, slightly affected by monsoon disruptions in some areas, also contributed to softer financials.
Shareholder Benefits & Market Impact
Despite the challenging quarter, Coal India’s dividend yield remains among the highest in the large-cap PSU segment. The company has historically prioritized shareholder returns, and this payout underlines management’s confidence in future cash flows. Past data show that ex-dividend days often see short-term volatility, but long-term holders benefit from both dividend income and potential capital appreciation as energy demand rises.
Expert Outlook
Market analysts point to Coal India’s dominant sector position, solid resource base, and continued strong dividends as long-term positives, despite near-term earnings pressure. With the Indian government’s focus on energy security and stable coal demand, CIL is expected to maintain operational strength.
Conclusion
Coal India’s Q2 FY26 results highlight both headwinds and resilience. While net profit and margins came under pressure in July-September 2025, the board’s continued interim dividend offer at ₹10.25 per share confirms their shareholder-friendly policy. For income-seeking investors, Coal India remains an attractive stock, especially at current levels with bright long-term prospects.