Strong volume recovery likely to drive upgrades for Coal India's stock

NCL is the third largest subsidiary with sales of 138 million tonnes in FY24, contributing 18 per cent of CIL's total sales volume

The introduction of "Singrauli Punarasthapan Charge" of ₹300 per tonne across all mines by Coal India’s (CIL) subsidiary Northern Coalfields (NCL) from May 1 is expected to drive an estimated additional revenue of ₹3,880 crore.

 

The levy is 2.5 per cent of FY26 revenue and implies up to 8 per cent upgrade to FY26 earnings. It translated to an effective price increase of ₹50 per tonne (3.5 per cent) on overall fuel supply agreement (FSA) coal of 734 million tonnes estimated for FY26.

 

NCL is the third-largest subsidiary with sales of 138 million tonnes in FY24, contributing 18 per cent