June Numbers Fall Below Target as Coal India Battles Seasonal and Logistical Pressures

Coal India Ltd (CIL), the world's largest coal miner, registered an 8.5% yearonyear decrease in coal production and a 7.4% fall in offtake during June 2025, marking a bumpy beginning to the monsoon quarter. The drop is notwithstanding robust demand from power and industrial segments, and could be an indication of logistical congestion and weatherrelated interruptions.

 

Key Performance Indicators – June 2025

 

Coal Production:

Coal Offtake (Sales):

What's Behind the Decline?

Analyst Take

In spite of the decline, analysts are optimistic. Deutsche Bank and Jefferies retain "Buy" calls, citing attractive dividend yields and longterm India power sector demand. Nevertheless, eauction price volatility, wage cost pressures, and limited operating leverage continue to be concerns.

 

FY25 Outlook

Coal India has targeted production at 788 MT and offtake at 765 MT for FY25. June numbers indicate the company might have to push production in the second half to remain on track.

 

Sources: Smartkarma, Economic Times, Moneycontrol