Coal India’s production for the month of August declined by 5.7% from last year to 47.5 MT. However, its offtake was higher by 5.5% to 60.6 MT.
On a year-to-date basis, Coal India’s production stood at 267.5 million tonnes for the April-August period, a decline of 4.5% during the same comparable period last year. Coal India has set its financial year 2027 production target at 815 MT.
Dispatches during the same April-August period have increased by 6.7% from the last year’s comparable period to 322.9 MT.
Coal India’s e-auction premium, which was reported after market hours on Tuesday, indicated a growth of 59% from the comparable period. For the April-August 2026 period, e-auction premiums are up 46%, compared to the 35% figure between April-August 2025.
Should You Buy Coal India Shares?
Brokerage firm UBS has a “buy” rating on Coal India with a price target of ₹550, which indicates an upside potential of 37.5% from Tuesday’s closing.
UBS said in its note that although the company’s offtake increased by 6% in August, it lags the 13% year-on-year growth seen in power demand.
The decline in production also allowed the liquidation of 55 MT of pithead coal inventories in the first five months of this financial year, UBS wrote.
HSBC has a “hold” rating on Coal India with a price target of ₹440.
The brokerage said that strong power demand, and weak hydro generation creates strong coal demand.
With coal inventories falling to three-year lows and regional coal prices surging, HSBC expects Coal India’s e-auction prices to rise further.
Morgan Stanley too is “equalweight” on Coal India with a price target of ₹420 apiece.
Coal India received an upgrade from Nuvama after this update, where the brokerage upgraded the stock to “hold” from its earlier rating of “reduce” and raised its price target to ₹454 from ₹396 earlier.
25 analysts have coverage on Coal India, of which 14 have a “buy” rating, six say “hold”, and five have a “sell” rating.
Shares of Coal India are trading 4.1% higher on Wednesday, bucking the trend in a weak market at ₹418.1. With this move, the stock has also turned positive on a year-to-date basis.
