Coal India (COAL IN) – Q1FY27 Result Update – Cost inflation dents profitability – ACCUMULATE
Published on 28 Jul 2026
Coal India (COAL) reported EBITDA (ex-OBR) of INR102bn, down 9% YoY was 10% below our estimates, EBITDA was primarily impacted due to higher fuel and material costs. Following the results, we have cut our FY27/28E EBITDA estimates by ~4/5%, factoring higher operating expenses. Given that the costs are peaking, retain Accumulate rating with revised TP of INR472 (at 5.25x FY28E EV/EBITDA). In Q1FY27, the company declared a dividend of INR5.5/share we have estimated DPS of INR28 for FY27E (yield of 7%). We model modest volume growth of 2/3% YoY with EBITDA (ex-OBR) growth of 11%/5% YoY for over FY27/28E. COAL remains well positioned to benefit from sustained strength in power demand led by delayed monsoon, with ~80% of volumes linked to coal-based power generation.
