Coal India Dividend Revealed! PSU Announces 102% Dividend, Fixes Record Date; Should You Buy? Target Price

Coal India Share Price Today: Maharatna PSU, Coal India Limited shares opened higher on Thursday, a day after the announcement of its second quarter results for the financial year 2025-26. The PSU also announced a 102% interim dividend for FY26.

Coal India shares opened higher on Thursday. The stock was trading 0.38% higher at Rs 382.5 per share on BSE with a market capitalisation of Rs 2,36,186.56 crore at 9:53 am.

Coal India Q2 Review

Coal India's revenue and EBITDA margins growth came below the estimates during Q2FY26, as per brokerage Motilal Oswal in its report. Coal India's adjusted. EBITDA (excluding OBR exp) stood at Rs 58.5 billion, which was down 18% on an annual basis, against Motilal Oswal's estimate of Rs 85 billion during the quarter. EBITDA was impacted primarily by higher other costs, noted the brokerage in its report on Thursday.

Weak volumes, and higher other costs impacted Coal India's Q2 performance. "For FY26, we trimmed our Revenue/EBITDA/APAT estimates by 4%/8%/6%, respectively, as we incorporate the muted volumes of 1HFY26 and subdued near-term outlook. We expect e-auction volume and premium to recover in 2HFY26, supported by demand recovery from the non-FSA sector," noted MOSL in its report.

The Maharatna PSU had reported a net profit of Rs 4,354.24 crore, which was 31% down against Rs 6,249.10 crore reported in the year-ago period. Additionally, the company had reported a sequential decline in its net profit from Rs 8,743.38 crore reported in Q1FY26. Coming to Coal India's net profit in the first half of FY26, the profit declined to Rs 13,097.66 crore in H1FY26 from Rs 7,244.57 crore reported in H1FY25.

Coal India Share Price Recommendation

The brokerage, despite highlighting the weaker than expected Q2 results, has given a buy rating for Coal India share price. "At CMP, the stock is trading at 4.2x EV/EBITDA and 1.8x P/BV on FY27E. We reiterate our BUY rating with a TP of INR440 (premised on 4.5x EV/EBITDA on Sep'27 estimate)," stated MOSL in its report.

Coal India Dividend

The company has announced an 102% interim dividend payout for its eligible shareholders. "The Board of Directors at its meeting held on date has inter alia, declared 2nd Interim Dividend for the Financial Year 2025-26 @ Rs 10.25/- per equity share on the face value of Rs 10/- as recommended by the Audit Committee of CIL at its meeting held on date," read a statement by the company in its BSE filing.

Coal India Dividend Record Date

The company has fixed Tuesday, 4 November as the dividend record date to determine the eligibility of shareholders for the corporate action. Investors who will own the company scrip on or before the record date can get the benefit of Coal India dividend.