Coal India production drops 3.7% in Apr-Nov FY26, first dip in six years

Coal India's output fell to 453.5 million tonnes in April-November FY26, the first comparable-period decline in at least six years, hurt by monsoon disruption and land issues

Prolonged rains brought Coal India Ltd's (CIL's) production by 3.7 per cent during the first eight months (April-November) of the financial year 2026 (FY26), marking the first contraction in coal output for the comparable period in six years since the pandemic struck in 2020, according to provisional data released by the company.

 

The company, which alone accounts for around 80 per cent of India’s coal production, attributed land acquisition challenges and adverse weather conditions to the shortfall in output.

 

CIL produced 453.5 million tonnes (MT) coal during April-November of FY25, compared with 471 MT in the same period last year.

   

A senior CIL official told Business Standard that production was affected this year by the early onset of monsoon, coupled with severe intensity in rainfall and its prolonged duration.

 

“Particularly, mines located in Jharkhand and Chhattisgarh were severely affected with sporadic rains continuing till as late as October. Land acquisition was another major issue,” he said. 

 

The decline breaks a sustained expansion cycle that began after the pandemic hit FY21. Coal India’s production during the April-November period had risen every year over the past six years, increasing from 334.5 MT in 2020 to 353.4 MT in 2021, 412.6 MT in 2022, 460 MT in 2023 and 471 MT in 2024, before reversing course this year.

 

The slowdown in coal production comes at a time when the company's financial performance has faced stress this fiscal year.

 

Coal India reported a 20 per cent and 31 per cent decline in net profit for the first and second quarters of 2025-26, respectively.

 

Experts say the lower coal demand from the power sector was a key factor weighing on production. “India’s coal production and despatch declined this year during April-November aligned with lower demand from the power sector, which is also reflected in lower electricity consumption,” said Rajib Maitra, partner and sector leader at Deloitte South Asia.

 

Coal dispatch to the power sector declined 3.27 percent during April-November of FY26, falling to 519 MT from 537 MT during the same period last year. Offtake of the fuel from CIL during the April–November period also dropped 2 percent compared with last year, reflecting lower evacuation from mines.

 

“Historically coal production also reduces during the monsoon season and picks up from October to March,” Maitra said.

 

The fall in overall output was driven by sharp contractions across several key subsidiaries of CIL. Bharat Coking Coal Ltd reported a 16.3% decline in production during April-November, while Central Coalfields Ltd recorded a 14.1% drop. Western Coalfields Ltd saw output fall 11.7%, and Eastern Coalfields Ltd also posted a contraction.