Coal India share price zooms 6%, hits fresh 52-week high; here's why

Coal India share price today: State-owned Coal India shares were buzzing in trade on Friday, January 2, 2026, with the scrip rising up to 6.15 per cent to hit a fresh 52-week high of ₹425 per share.

 

Around 1:10 PM, Coal India share price was trading 5.50 per cent higher at ₹422.35 per share. By comparison, BSE Sensex was trading 0.53 per cent higher at 85,641.58 levels.

Why did Coal India share price rally?

 

Shares of Coal India surged after the state-owned miner announced that, effective January 1, 2026, coal consumers in neighbouring countries, Bangladesh, Bhutan and Nepal, will be allowed to directly participate in its Single Window Mode Agnostic (SWMA) e-auctions, marking a first for the company.

 

 

The move follows recent approval by CIL’s board, which tweaked the auction mechanism to enable foreign buyers to bid alongside domestic participants. 

 

A senior company official said the decision reflects CIL’s “calibrated approach to market expansion while fully safeguarding domestic coal requirements,” adding that it would boost transparency, competition and integration with global markets.  ALSO READ | Nifty Auto up 3x vs Nifty in last 4 years; analysts expect further upside 

Under the revised framework, coal consumers from the three neighbouring countries can participate directly in SWMA auctions through a digital bidding process. Earlier, cross-border access to CIL’s coal was restricted to domestic coal traders, who were permitted to buy and sell coal without any end-use restrictions.

 

All operational and procedural details have been incorporated into the updated SWMA scheme. Key provisions for foreign buyers include a one-time registration process, advance electronic payments and coal exports through notified logistics channels. The payment mechanism will be fully compliant with Foreign Exchange Management Act (FEMA) regulations.

 

Buyers from Nepal will be allowed to make payments either in Indian rupees or US dollars, while buyers from Bangladesh and Bhutan will be required to pay in US dollars, with valuation linked to the rupee.

 

Coal India said it had earlier held discussions with prospective overseas coal consumers to identify enabling provisions and assess their demand, paving the way for the revised auction framework.

 

On January 1, 2026, Coal India reported a 4.6 per cent year-on-year (Y-o-Y) rise in coal production in December, even as offtake declined 5.2 per cent.

 

The miner and its eight subsidiaries produced 75.7 million tonnes (MT) of coal during the month, compared with 72.4 MT in December 2024. However, offtake fell to 64.9 MT from 68.5 MT a year earlier.  ALSO READ | Sambhv Steel Tubes jumps 7% in trade; what's driving investors' interest? 

For the April-December FY26 period, Coal India’s cumulative production declined 2.6 per cent Y-o-Y to 529.2 MT, down from 543.4 MT in the corresponding period of FY25.

Offtake during the nine-month period also eased 2.2 per cent to 544.7 MT, compared with 557 MT in April-December FY25.

 

Coal India is a state-owned enterprise under the Ministry of Coal and the world’s largest coal producer. Established in 1975, the company was formed through the merger of the National Coal Development Corporation (NCDC) and Coal Mines Authority Limited (CMAL) following the nationalisation of India’s coal mines in the 1970s.

 

CIL plays a central role in ensuring India’s energy security by efficiently mining and marketing coal. It operates through multiple subsidiaries, managing opencast and underground mines across eight Indian states. The company contributes the bulk of India’s domestic coal output, supplying fuel for most of the country’s coal-based power generation, while also diversifying into areas such as renewable energy.