Coal India Share Price In Red Despite Dividend Payout; Q1 Profit Flat YoY | Buy, Sell or Hold?

Coal India Share Price Today: Shares of Coal India remained lower on Tuesday, July 28, after the state-owned coal producer reported flat profit in the first quarter of financial year 2026-27. Coal India also announced dividend for the financial year 2026-27.

The PSU stock was trading 4% lower at Rs 410.3 per share on BSE with a market capitalisation of Rs 2,52,887.56 crore at 1:50 pm on Tuesday. The stock had touched an intraday high mark of Rs 423.85 per share and an intraday low mark of Rs 407.00 per share.

Coal India Dividend

Coal India board of directors this week recommended an interim dividend for the financial year 2026-27. The Maharatna PSU's board 'declared Interim Dividend for the Financial Year 2026-27 at Rs 5.50 per equity share on the face value of Rs 10," as per the BSE filing released on Monday.

Coal India Dividend Record Date

The board fixed Friday, July 28 as the record date to determine the eligibility of shareholders for the dividend payout. Investors must own the PSU stock before the record date to get the payout. "The company has fixed Friday, 31st July, 2026 as the "Record Date" for the purpose of determining the eligibility of shareholders for payment of Interim Dividend on equity shares for the financial year 2026-27. Payment of Interim Dividend for FY 2026-27 shall be made on or before 25th August, 26."

Coal India Share Price Outlook

The public sector coal giant reported largely in-line revenue driven by higher volume offtake. However, the company's adjusted EBITDA declined 9% on a yearly basis and around 17% on a quarterly basis. The Kolkata-based mining major's overall earnings were a miss due to cost pressures arising from geopolitical situation, as per Motilal Oswal report released on Friday.

"We expect some of these cost headwinds to stabilize in the coming quarters. Going forward, we expect COAL to post a 3-4% volume CAGR in FY26-28, while a higher share of e-auction volumes and improved premiums should support overall NSR and margins. This is expected to translate into a CAGR of 4% and 9% in revenue and EBITDA over FY26-28," stated the brokerage in its report.

Coal India Share Price Recommendation

The brokerage gave a 'Buy' rating for the stock with a target price of Rs 510 per share. "At CMP, the stock is trading at 4.9x on FY28E EV/EBITDA. We retain our estimates and reiterate our BUY rating with a TP of INR510, valuing the stock at 6x FY28E EV/EBITDA."

Coal India Q1 Result Recap

Coal India reported 0.6% uptick in its net profit to Rs 8,852 crore in Q1FY27. The company saw a profit of Rs 8,797 crore in Q1FY26. Its revenue from operations increased by 7.8% to Rs 46,255 crore against Rs 42,919 crore in the year ago period. The company's EBITDA margin stood at 26.1% versus 29.3% in the same period in previous financial year.