Coal India still at 40% of full year target as production drops for second straight month

Coal India generally reports lower production in the first half of a financial year due to the monsoon months, while output picks up in the later half of the year.

State-run Coal India Ltd. reported a drop in production for the month of September, a second straight month of decline in production as monsoon rains continued to take a toll on output.

Production for the month of September fell 1% from last year to 50.9 million tonnes, down from 51.4 million tonnes in September last year. The figure though, was better than the 11.9% drop reported in August.

For the first half of the current financial year, Coal India’s production has increased by 2.5% to 341.3 million tonnes, from 332.9 million tonnes last year.
That figure, is just over 40% of the full year target of 838 million tonnes that Coal India has set for itself.

Coal India generally reports lower production in the first half of a financial year due to the monsoon months, while output picks up in the later half of the year.

In September, only Eastern Coalfields reported an increase in production for Coal India, along with Western Coalfields and Mahanadi Coalfields. Central, Northern, SECL and BCCL, all reported a drop in production of up to 10% from last year.

Coal India’s Offtake too declined for the month of September, dropping 1.4% to 54.4 million tonnes from 55.2 million tonnes last year. For the first half of financial year 2025, total offtake stood at 366.6 million tonnes, a growth of 1.7% from last year.

Towards the end of August, brokerage firm Nuvama maintained its “Neutral” rating on the stock with a price target of ₹567 and advised investors to sell the stock on every rally. The brokerage believes that volumes in the current financial year will fall well short of the management’s targets.

Shares of Coal India ended near the lowest point of the day, ending 0.3% lower at ₹508.5.
Source: CNBCTV18