Coal India Share Price: Should You Buy Ahead of Q4 FY25 Results?

Coal India Share Price: Should You Buy Ahead of Q4 FY25 Results?

May 7, 2025 — As Coal India Limited (CIL), the world's largest coal producer, prepares to announce its Q4 FY25 results today, investors are keenly observing the stock's performance and evaluating its investment potential.

Anticipated Q4 FY25 Performance

Analysts project a mixed bag for Coal India's Q4 FY25 performance. While higher production volumes are expected, profitability may take a hit due to declining e-auction premiums and increased employee costs.(mint)

• Revenue: Estimated to rise by 2.4% YoY to ₹38,290 crore.

• Net Profit: Expected to remain flat YoY at ₹8,690 crore.

• EBITDA: Projected to increase by 12.9% YoY to ₹11,110 crore.

• EBITDA Margin: Anticipated to be around 32.3%, down from 34.4% in the previous quarter.(mint, ET Now)

The decline in profitability is primarily attributed to weaker realizations and elevated employee costs, despite higher production volumes. (mint)

Market Reaction and Share Price Trends

Ahead of the earnings announcement, Coal India's share price experienced a slight dip, trading 0.42% lower at ₹376.75 on the BSE. The stock has been oscillating within a range of ₹356 to ₹421, with recent trends indicating bearish momentum. (mint)

Dividend Considerations

The company's board is also expected to consider and recommend the payment of a final dividend for FY 2024-25 during today's meeting. Coal India has a history of consistent dividend payouts, making it an attractive option for income-focused investors. (mint)

Analyst Recommendations

Brokerage firms have varied outlooks on Coal India's stock:

• Motilal Oswal Financial Services: Highlights better e-auction volume and premium as drivers for healthy performance. Emphasizes the importance of management guidance on FY25/FY26 volume and e-auction premium. (mint)

• SMC Global Securities: Points to pressure on realizations and elevated employee costs as factors impacting profitability. Notes that while e-auction premiums have declined QoQ, there is some YoY improvement.

Investment Outlook

Coal India's strong fundamentals, consistent dividend payouts, and dominant position in the coal industry make it a noteworthy consideration for long-term investors. However, potential investors should be cautious of short-term volatility due to fluctuating coal prices and operational challenges.