Coal India Shares Slide 4.5% Over Past Month: Q3 Profit Hits Speed Bump with ₹2,201 Cr Pay Provision

Mumbai, February 13, 2026: Shares of Coal India Limited (CIL) have faced a cooling period over the last 30 days, declining by ₹19.60 (4.57%) to close at ₹409.30. The market reaction follows the company's Q3 FY26 earnings release on February 12, which highlighted a squeeze on profitability despite resilient operational volumes.

While the stock hit a five-week low, the Maharatna PSU has moved to cushion the blow for investors by declaring its third interim dividend of the fiscal year.

1. The Financial Breakdown: Why Profit Slipped 16%

The December quarter (Q3 FY26) presented a challenging set of numbers compared to the previous year. The "Street" reacted to a significant miss in bottom-line expectations.

• Consolidated Net Profit: Reported at ₹7,166 crore, a 16% year-on-year (YoY) decline from ₹8,491 crore in Q3 FY25.

• Revenue from Operations: Dipped 5% to ₹34,924 crore as global coal prices softened, impacting realization per tonne.

• The One-Time Hit: A major drag on earnings was a ₹2,201 crore provision for the retroactive upgradation of executive pay scales, following a January 7, 2026, order from the High Court of Jabalpur.

• EBITDA Contraction: Operating profit fell by 25% to ₹10,285 crore, with margins narrowing by 800 basis points to 29.44%.

2. Dividend Update: The "Yield" Safety Net

True to its nature, Coal India has utilized its strong cash reserves to reward shareholders. This latest payout brings the total dividend for FY26 to a record high.

Note to Investors: To be eligible for the ₹5.50 dividend, shares must be in your Demat account before the market close on the Record Date.

3. Market Sentiment: A One-Month Snapshot

The stock’s decline from its January highs is not just about the profit miss; it reflects broader sectoral shifts:

1. Lower E-Auction Premiums: The average realization from e-auctions fell to ₹2,434 per tonne, down from ₹2,684 last year, indicating that the supply-demand gap is normalizing.

2. Listing of BCCL: The successful listing of Bharat Coking Coal Limited (BCCL) on January 19, 2026, initially boosted the stock, but investors have since moved into "profit-booking" mode.

3. Critical Minerals Foray: While the acquisition of the Kawalapur REE Block in Maharashtra (January 2026) is a long-term positive, it involves high initial capital expenditure which may weigh on short-term liquidity.

4. Technical Outlook

At ₹409.30, Coal India is currently trading below its short-term 20-day and 50-day moving averages. However, analysts point out that it remains comfortably above its long-term support at the 200-day average. The 14-day RSI stands at 46.8, suggesting the stock is in a "neutral" zone—neither overbought nor oversold.

Final Verdict for Investors

The 4.5% dip over the last month appears to be a correction driven by a one-time employee cost and a stabilization of coal prices. For income investors, the high dividend yield remains one of the best in the Nifty 50. For growth investors, the focus remains on the "1 Billion Tonne Roadmap" and how quickly the new critical mineral and thermal power JVs begin contributing to the top line.