Coal India Q3 results: Profit rises to Rs 9,069 cr, interim dividend of Rs 5.25 per share announced

State-run Coal India's net profit surged to Rs 9,069 crore in the December quarter from Rs 6,799 crore in the second quarter. The board has announced an interim dividend of Rs 5.25 per share. The coal behemoth's consolidated net profit stood at Rs 7,755.55 crore in the year-ago period.

Coal India's consolidated revenue from operations in the October-December period increased to Rs 36,153.97 crore from Rs 35,169.33 crore a year ago. CIL accounts for over 80 per cent of domestic coal production.

On Monday, shares of Coal India declined nearly 5 per cent to settle at Rs 433.05 on the BSE.

Also read: Coal India shares: 70% rise in 2023, analysts see further upside on this dividend-paying PSU stock

Last month, Motilal Oswal Securities said Coal India was well placed to capitalise on the growth opportunity ahead. The brokerage firm said the coal giant had intensified its focus on capex that would improve its evacuation infrastructure. Capex, which used to hover around Rs 6,500-8,500 crore until FY20, tripled in FY23 to Rs 18,600 crore.

"Over the last three years, capex has exceeded budget estimates. Coal India trades at an EV/adjusted FY26 Ebitda of 4.2 times. We roll forward our estimates to FY26. We reiterate our BUY rating on the stock with a target of Rs 430 (premised on 5 times FY26E EV/Ebitda). We believe Coal India is well placed to capitalise on the growth opportunity ahead," this brokerage said.

Sharekhan, which retained its 'Buy' rating on the stock with a revised target price of Rs 440, said Coal India's stock valuation at 7 times FY2026 earnings per share (EPS) was attractive, and the stock offered a high dividend yield of 8-9 per cent.