What was the impact of the accounting restatement on Coal India's FY2026 results?

CIL restated its FY2025 financials under Ind AS 8 after changing how it accounts for levies on coal production and sales — shifting from an agency model to a principal model, which grosses up both revenue and corresponding expenses. This made FY2025 revenue appear higher in the restated comparison, which makes the FY2026 revenue look like a decline even though the operational business was broadly stable. Investors should account for this when comparing the two years.

What do the BCCL and CMPDI listings mean for Coal India shareholders?

Bharat Coking Coal Limited (BCCL) was listed in January 2026 with CIL divesting a 10% stake; Central Mine Planning and Design Institute Limited (CMPDI) was listed in March 2026 with a 15% stake divested. These listings are part of the government's disinvestment programme. CIL retains majority control (90% in BCCL, 85% in CMPDI), and the listings improve price discovery for these subsidiaries while generating divestment proceeds for CIL.

What is the total FY2026 dividend from Coal India?

Coal India paid a total dividend of ₹26.50 per share in FY2026, across four tranches: ₹5.50 (first interim, July 2025), ₹10.25 (second interim, October 2025), ₹5.50 (third interim, February 2026), and ₹5.25 recommended as final dividend (subject to shareholder approval at the upcoming AGM). All dividends are now paid electronically — shareholders should update KYC details in their demat accounts.

Why did Coal India's PAT fall 12% in FY2026 despite strong cash flows?

PAT fell 12.4% to ₹31,071 crore due to three specific factors: a one-time ₹1,458 crore salary provision ordered by the High Court of Jabalpur (covering exec pay arrears from August 2023 to December 2025), a ₹608.81 crore impairment charge at SECL for coal blocks in eco-sensitive zones, and broad cost inflation across other expenses, depreciation, and finance costs. Despite this, operating cash flow was strong at ₹43,215 crore, significantly higher than FY2025's ₹30,237 crore.

Coal India FY2026: PAT Down 12%, Q4 Recovers. Full Breakdown

Q: How was Q4 FY2026 different from the full year?

Q4 FY2026 was significantly stronger than the full year suggested. Revenue from operations in Q4 was ₹46,490 crore, up 5.7% year-on-year. PAT came in at ₹10,908 crore, up approximately 12% from ₹9,740 crore in Q4 FY2025 — the strongest quarterly PAT of the year. With one-off charges now absorbed, Q4 signals that the underlying operations are recovering.

Quick Answer

Coal India (CIL) reported consolidated PAT of ₹31,071 crore for FY2026, down 12.4% from ₹35,450 crore in FY25, weighed down by a ₹1,458 crore one-off salary provision, higher expenses, and an eco-zone impairment at SECL. Revenue from operations was nearly flat at ₹1,68,400 crore. Q4 FY2026 told a better story — PAT recovered to ₹10,908 crore, up ~12% year-on-year. The board recommended a final dividend of ₹5.25 per share, taking the total FY26 payout to ₹26.50 per share across four tranches.

The Full-Year Numbers: A Soft Year, Not a Broken One

Coal India's consolidated revenue from operations for FY2026 came in at ₹1,68,400 crore, slightly below the restated ₹1,69,177 crore in FY2025, a decline of less than 1%. On the surface, this looks like stagnation. In context, it reflects a company operating near its revenue ceiling while costs caught up.

The profit picture is harder to ignore. Consolidated PAT fell 12.4% to ₹31,071 crore from ₹35,450 crore in FY2025. Earnings per share dropped from ₹57.61 to ₹50.46. These are not numbers that will excite growth investors, but they need to be read carefully before drawing conclusions about the underlying business.

One important caveat: the FY2025 numbers have been restated upward due to a change in how CIL accounts for levies on coal production and sales. Historically treated as amounts collected in an agency capacity, these have now been reclassified as principal transactions, meaning both revenue and corresponding levy expenses are now shown gross. This restates FY2025 revenue significantly higher, making the YoY comparison look worse than the operational reality.

Why PAT Fell: Three Specific Reasons

The PAT decline was driven by a combination of one-off charges and structural cost increases — not by a collapse in volumes or pricing.

First, salary provisioning. Following a High Court of Jabalpur order in January 2026 directing the upgradation of pay scales for executives across the CIL group (effective August 2023), the company recognised a provision of ₹1,457.90 crore for the period from August 2023 to December 2025. This is a one-time catch-up charge that hit the FY2026 P&L but covers three years of salary arrears. The revised salary structure is now implemented from January 2026 and being paid going forward, so this specific charge should not recur.

Second, eco-zone impairment. South Eastern Coalfields Limited (SECL), a CIL subsidiary, took an impairment charge of ₹608.81 crore against coal blocks located in eco-sensitive zones, including the Lemru Elephant Reserve, Elephant Corridor, and Bandhavgarh Tiger Reserve, where mining has been prohibited by state government notifications. These blocks are effectively stranded, and the write-off reflects that reality.

Third, broad cost inflation. Other expenses rose from ₹40,474 crore to ₹44,264 crore (+9.4%). Employee benefit expenses rose ₹1,578 crore (+3.5%). Depreciation increased ₹1,045 crore (+11.5%), and finance costs rose ₹333 crore (+37.7%). None of these individually are alarming, but together they absorbed any revenue-side momentum.

Q4 FY2026: A Clearer Picture of Where the Business Is

Quarter-on-quarter, the story improves. Q4 FY2026 (January–March 2026) revenue from operations came in at ₹46,490 crore, up 5.7% from ₹43,962 crore in Q4 FY2025. More importantly, PAT for the quarter was ₹10,908 crore, up approximately 12% from ₹9,740 crore in the comparable quarter last year.

Q4 EPS came in at ₹17.59 — the strongest quarter of the year. This matters because it suggests the cost headwinds that weighed on H1 and H2 FY2026 are beginning to moderate. With salary arrears now provisioned and eco-zone impairments taken, the base for FY2027 is cleaner.

Cash generation remains a genuine strength. Operating cash flow for FY2026 came in at ₹43,215 crore, significantly higher than ₹30,237 crore in FY2025. A business generating ₹43,000+ crore in operating cash flow annually — even in a weak profit year — has a fundamentally different risk profile than its P&L headline suggests.

The Dividend: ₹26.50 Per Share for FY2026

For income-oriented investors, Coal India remains one of the highest-yielding large-cap stocks in India. The FY2026 dividend summary:

First interim dividend: ₹5.50 per share (declared July 31, 2025)
Second interim dividend: ₹10.25 per share (declared October 29, 2025)
Third interim dividend: ₹5.50 per share (declared February 12, 2026)
Final dividend: ₹5.25 per share (recommended April 27, 2026, subject to shareholder approval at AGM)

Total FY2026 dividend: ₹26.50 per share. The total cash outflow for the final dividend alone is approximately ₹1,691 crore. CIL's ability to sustain this payout even in a year of PAT decline reflects its strong operating cash flow position. Note that dividends will now be paid only through RBI-approved electronic modes, shareholders should ensure their KYC and bank account details in their demat accounts are updated.

Two Subsidiary Listings: BCCL and CMPDI

Two significant structural developments happened during FY2026 that have received less attention than they deserve.

Bharat Coking Coal Limited (BCCL) was listed on NSE and BSE on January 19, 2026. CIL divested a 10% equity stake (46.57 crore shares) through this listing. Post-divestment, CIL holds 90% of BCCL, which continues to remain a subsidiary.

Central Mine Planning and Design Institute Limited (CMPDI) was listed on NSE and BSE on March 30, 2026. CIL divested a 15% equity stake (10.71 crore shares). Post-divestment, CIL holds 85% of CMPDI, which also continues as a subsidiary.

These listings are part of the broader government disinvestment program and represent value unlocking for CIL shareholders. They also improve price discovery for these entities and could generate proceeds that CIL can redeploy into capital expenditure, dividends, or further capacity expansion.

The Honest Read on FY2027

Going into FY2027, the base is cleaner. The ₹1,458 crore salary provision will not repeat. The eco-zone impairment at SECL is taken. If coal demand holds, which it has historically during periods of high power consumption, the revenue line should stabilise or grow modestly.

The structural risks are real and unchanged: Coal India's volumes are regulated, its pricing is partially administered, and its cost structure is heavily employee-driven (employee costs alone were ₹46,425 crore in FY26 — nearly 28% of revenue). Any further wage revision orders or regulatory interventions could compress margins again.

But for investors who hold CIL primarily for dividends and cash generation, FY2026 did not fundamentally alter the investment case. The ₹43,215 crore operating cash flow and ₹26.50/share dividend speak for themselves.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock prices can be volatile, and past performance does not guarantee future results. Please do your own research or consult a financial advisor before making any investment decisions.

Coal India FY2026 Results: PAT Falls 12% for the Year, But Q4 Shows Momentum Returning