Coal India margin falls as costs outpace 29.05% revenue growth
Operating margin slipped to 26.09% sequentially, while other income remained 19.46% of pre-tax profit and kept net profit growth modest.
Filed 27 Jul 2026, 17:49 IST · after market close · Coal India Ltd (COALINDIA)
Key takeaways
- Consolidated revenue rose 29.05% year on year, but expenses grew 46.59%, pulling operating margin down 8.84 percentage points.
- Net profit increased only 1.32% year on year as other income contributed 19.46% of pre-tax profit and the tax rate fell 0.92 percentage points.
- Operating margin declined 1.17 percentage points sequentially to 26.09%, reversing the improvement seen over the previous two quarters.
Price around the results
Revenue growth did not translate into operating profit
Coal India’s consolidated revenue rose 29.05% year on year to Rs 46,254.8 cr, but operating profit fell 3.62%. Sequentially, revenue was nearly flat at -0.51% while expenses rose 1.09%, lowering operating profit by 4.77%.
Lower tax helped offset weaker operating performance
Net profit rose 1.32% year on year even though operating profit declined, helped by a 0.92-percentage-point reduction in the tax rate to 24.49%. Other income was 19.46% of pre-tax profit, so reported profit had a meaningful non-operating contribution. Sequentially, net profit fell 18.87%, with other income down 56.50% from the previous quarter.
Margin recovery stalled after two quarters of improvement
Operating margin fell from 22.25% in Q2FY26 to 26.72% in Q3FY26 and 27.26% in Q4FY26, before easing to 26.09% in Q1FY27. This is not a third straight quarterly decline, but it does mark a reversal after two quarters of improvement. The margin remained 20.41 percentage points above the 5.68% median for the seven Energy peers that had reported.
Results were filed after the close; history leans negative
The consolidated results were filed after market close, so there was no current market reaction to assess. Across the previous eight result reactions, the stock rose three times and fell five times, with a median absolute move of 2.43%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹46,255 cr | ₹46,490 cr | -0.51% | +29.05% |
| Other income | ₹2,281 cr | ₹5,244 cr | -56.50% | +29.58% |
| Expenses | ₹34,186 cr | ₹33,817 cr | +1.09% | +46.59% |
| Operating profit | ₹12,069 cr | ₹12,673 cr | -4.77% | -3.62% |
| Operating margin (%) | 26.09% | 27.26% | — | — |
| Interest | ₹327 cr | ₹344 cr | -4.74% | +23.45% |
| Depreciation | ₹2,303 cr | ₹2,947 cr | -21.85% | -0.20% |
| Profit before tax | ₹11,719 cr | ₹14,627 cr | -19.88% | +0.09% |
| Tax | ₹2,870 cr | ₹3,719 cr | -22.84% | -3.54% |
| Net profit | ₹8,850 cr | ₹10,908 cr | -18.87% | +1.32% |
| EPS (₹) | ₹14.36 | ₹17.59 | -18.36% | +1.20% |
Operating margin of 26.09% compares with a Energy sector median of 5.68% across 7 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 26.09% after the sequential decline of 1.17 percentage points.
- Whether expenses continue to grow faster than revenue after a 46.59% year-on-year increase against 29.05% revenue growth.
- Whether other income remains close to 19.46% of pre-tax profit.