Coal India rallies 7% in 2 days, stock nears 52-week high; here's why

Coal India board approved the listings of its arms South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL).

Coal India share price today

 

Share price of Coal India rallied 3 per cent to ₹412.40 on the BSE in Wednesday’s intra-day trade, extending its previous day's up move after the board’s in-principle approval for the listings of its arms South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL).

 

In the past two trading days, the stock price of the public sector undertaking (PSU) company has surged 7 per cent. It now quotes close to its 52-week high of ₹417.25 touched on May 20, 2025.

 

At 09:33 AM; Coal India was quoting 2 per cent higher at ₹409.60, as compared to 0.14 per cent rise in the BSE Sensex. The counter has seen huge trading volumes as compared to the past two-week average volumes. A combined nearly 7 million equity shares changed hands on the counter on the NSE and BSE.

 

 

Why did Coal India stock hit a 7-month high on Wednesday?

 

Coal India on Tuesday, December 23, 2025, after market hours informed that the company’s board through circular resolution has accorded in–principle approval for listing of Mahanadi Coalfields Limited (MCL). 

 

In a separate exchange filing, Coal India said the board has accorded in–principle approval for listing of South Eastern Coalfields Limited (SECL).

 

The company said the same shall be communicated to the Ministry of Coal (MoC) for onward submission to the Department of Investment and Public Asset Management (DIPAM). The proposed in-principle listings of MCL and SECL are subject to completion of various regulatory approvals.

 

MoC, vide its Office Memorandum I/37811/2025 dated 16.12.2025 had advised CIL to take concrete steps to ensure further listing of subsidiaries namely MCL and SECL in the upcoming financial year.

 

Meanwhile, Bharat Coking Coal (BCCL) and Central Mine Planning & Design Institute Limited (CMPDI), units of Coal India, have filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its upcoming Initial Public Offerings (IPO).  According to reports, BCCL is likely to hit the primary market with a ₹1,300-crore IPO within the next two weeks.  CATCH STOCK MARKET LIVE UPDATES TODAY

Coal India – Future Outlook

 

To meet the demand of coal in the country and become ‘Atmanirbhar’ and simultaneously eliminating non-essential import of coal in the country, Coal India has envisaged to enhance its production to 1 BT by the year 2028-29 from current level production of 781 MT achieved in FY25. Coal India in its FY25 annual report said, the company has already identified all resources required, including major projects that will contribute to its 1 BT production plan and its related issues/enablers like requirement of EC/FC, land, evacuation constraints etc. 

 

Coal India is committed to achieve 1 BT production plan with the active support of MoC and all other stakeholders. Coal India shall adhere to 1 BT coal production plan but the demand scenario shall decide the production/supply in future. The proposed capital expenditure for the year 2025-26 has been set at ₹16,000 crore. 

 

Apart from the coal sector, Coal India has allocated a significant portion of planned CAPEX towards foray into Critical minerals, Coal Gasification, thermal power plants and renewable energy portfolio. The above initiates are crucial for the sustainability of the company considering the country’s commitment towards Net Zero, the company said.

 

Axis Direct view on Coal India

 

Coal India offers a good dividend yield of 6 per cent; however, volume ramp-up remains crucial for earnings growth in FY26/27. Although peak power demand is projected to grow to 366 GW by FY32, focus on captive coal growth and lower thermal PLFs as RE capacity picks up in the coming years may slow down coal offtake requirements. Captive coal volumes reached 198 MT at 19 per cent of total coal production in FY25 (25 per cent CAGR over FY20-25). 

 

More odds are stacked against Coal India, with its production cost likely to increase with increasing stripping ratio. Furthermore, wage revision is due for non-executive employees in June 2026 and executive employees in January 2027, which will increase employee expenses in FY26/27, Axis Direct said in the Q2 result update. Currently, Coal India is trading above the brokerage firm’s target price of ₹400 per share.    =====================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.