Coal India Q2 Results 2025: ₹10.25 Dividend Declared, Profit Drops 32% Amid Weak Demand
Coal India Limited (CIL) reported its Q2 FY25 earnings with a net profit of ₹4,263 crore, down 32% year-on-year. Despite operational pressure from monsoon disruptions, the PSU declared a dividend of ₹10.25 per share.
Coal India Q2 Results Dividend & Share Price: Profit Down 32%, ₹10.25 Dividend Announced
Coal India Limited (CIL), one of India’s largest state-run miners, released its Q2 FY25 results, reporting a net profit of ₹4,263 crore — a 32% decline compared to the same quarter last year. The fall comes amid weaker demand, lower output due to heavy rains, and increased input costs affecting margins.
Coal India Dividend Update
The board of directors approved a dividend of ₹10.25 per share, continuing its record of strong shareholder returns. The dividend payout reflects the company’s stable cash flow despite near-term headwinds in production volumes.
Coal India Share Price Movement
Following the results, Coal India share price opened slightly lower on the NSE, hovering near ₹435 levels, as investors reacted to the dip in profit. The market, however, noted that the dividend declaration added support to investor sentiment. Analysts believe the stock’s long-term outlook remains positive given steady demand recovery in Q4 and FY26.
Comparison: Coal India and Gold Price Trends
Interestingly, while Coal India stock faced a temporary dip, gold prices in India saw a minor correction this week. Investors seeking defensive assets moved to dividend-paying PSU stocks like Coal India, balancing exposure between commodity-linked assets and equities.
Bonus, Buyback & Long-Term Potential
Though the company has not announced any bonus issue or buyback plan, the consistent dividend yield above 5% makes it one of the most reliable PSU income stocks. Many retail investors continue to view Coal India as a potential multibagger over the next three years if operational efficiencies improve and demand rebounds post-monsoon.
Key Financial Highlights
- Net Profit (Q2 FY25): ₹4,263 crore (down 32% YoY)
- Revenue: ₹28,500 crore (down 6% YoY)
- Dividend: ₹10.25 per share
- EBITDA Margin: 18%
- Production Volume: 147 MT vs. 162 MT last year
Market Outlook
Despite near-term challenges, Coal India’s fundamentals remain steady. Analysts expect a recovery in volumes during Q3 and Q4 with seasonal demand pickup and better offtake from power utilities. The management remains focused on capital expenditure and green energy diversification to support long-term growth.
Disclaimer
This article is for informational purposes only and should not be treated as investment advice. Investors are advised to consult certified financial professionals before making stock market decisions.
Frequently Asked Questions (FAQ)
Q1: What was Coal India’s Q2 FY25 profit?
A: Coal India reported a profit of ₹4,263 crore for Q2 FY25, down 32% compared to the same period last year.
Q2: What dividend has Coal India declared?
A: The company declared a dividend of ₹10.25 per share for Q2 FY25.
Q3: Why did Coal India’s profit decline this quarter?
A: The decline was mainly due to heavy rainfall during the monsoon season, which disrupted production and affected coal dispatch volumes.
Q4: What is Coal India’s current share price?
A: As of October 29, 2025, Coal India shares traded around ₹435 on NSE.
Q5: Is Coal India still a good long-term investment?
A: Many analysts maintain a positive long-term outlook, citing stable dividends, strong cash flows, and future demand recovery potential.
