The offer will be made via a book-building process. Up to 50 per cent of the net offer is allocated to qualified institutional buyers (QIBs), while up to 15 per cent and 35 per cent is assigned to non-institutional bidders and retail individual bidders, respectively.
The miniratna, a wholly owned subsidiary of CIL, controls the Talcher and Ib Valley coalfields in Odisha. It has the largest output among CIL’s units, producing 218.3 million tonnes (mt), accounting for 28.3 per cent of CIL’s total production in FY26. The company’s revenue from operations was ₹8,033.7 crore for Q1FY27, compared with ₹7,548.3 crore in the year-ago period. Net profit was down to ₹2,398.7 crore from ₹2,448.3 crore in Q1FY26.
Mahanadi Coalfields holds mining rights and surface rights over 30,192.14 hectares of land across the two coalfields and it operates 17 mines, with over 99 per cent of production from opencast mines. It has good rail connectivity, dedicated coal corridors and port connectivity.
CIL production declined 6 per cent year-on-year (Y-o-Y) in August off a high base to 47.5 mt, while offtake remained strong at 60.6 mt. This came after 9 per cent production growth in July against a low base in the year-ago period. Offtake grew 6 per cent Y-o-Y in August and by 18 per cent Y-o-Y in July. The high offtake versus low production allowed the liquidation of 55 mt of inventories in the first five months of FY27.
Thermal power demand grew 11 per cent Y-o-Y in August and by 12 per cent Y-o-Y in July off a low base (flat Y-o-Y in August 2025). A deficient monsoon in 2026 versus surplus rain in 2025 has pushed up power demand. The inventory in power plants moderated to nine days at the end of August compared with 12 days at the end of July and 19 days in March. E-auction premiums were 59 per cent in August and 41 per cent in July. It is estimated that e-auction premiums may remain higher near-term, given elevated global thermal coal prices.
The full-year estimate for offtake is around 796 mt. Full year production guidance is for around 815 mt, but most analysts are assuming production of about 790 mt in FY27 with an expectation of post-monsoon production recovery. The production moderation in July-August may be intentional, given inventory levels.
Thermal generation was up 4.5 per cent Y-o-Y in August and 7.8 per cent Y-o-Y in FY27 year-to-date (YTD), on a lower base in FY26 YTD. Overall, peak power demand hit 258 gigawatt (Gw) and power consumption rose 12.9 per cent Y-oY in August, on a lower base. On the supply front, total coal production declined to 69.8 mt in July from 80.1 mt in June, due to a 12 per cent drop in CIL’s output.
Captive plant output declined by 17 per cent with the share in total demand dropping by 100 basis points (bps) month-on-month (M-o-M) to 21.9 per cent. Import demand was affected by high international prices, with South African grade RB2 coal priced at $140/tonne. This contributed to the 59 per cent e-auction premium for August compared with a 41 per cent in July, improving earnings visibility.
In Q1FY27, CIL reported an operating profit of ₹10,200 crore, down 9 per cent Y-o-Y due to higher fuel and material costs. Net profit remained flat Y-o-Y at ₹8,800 crore with 26 per cent Y-o-Y growth in other income and a lower effective tax rate. CIL declared interim dividends at ₹5.5 per share. Given the historical trend, it is likely to declare a total dividend of ₹28 per share or more in FY27.
Apart from the Mahanadi IPO, CIL will benefit from power demand since 80 per cent of volume is linked to coal-power generation. It is also likely to see sustained high e-premiums over fuel supply agreement (FSA) since imported coal prices are high. The e-auction offtake was around 13 per cent of offtake with realisations at ₹3,085 per tonne in Q1FY27. Blended realisations in Q1FY27 were at ₹2,338/t (up from ₹2,248/t in Q1FY26).
CIL has plenty of cash with reserves of over ₹52,000 crore (about 18 per cent of market capitalisation). It is diversifying and moving into valued-added areas. Capex increased 16.6 per cent Y-o-Y to ₹3,400 crore, or about 20 per cent of the FY27 target.
The company advanced its coal gasification plans through a joint venture with BHEL at an investment of ₹25,000 crore and an annual capacity of 6.6 lakh tonnes of ammonium nitrate. It has commissioned 200 megawatt (Mw) of the 300 Mw Khavda solar project in Gujarat and received commissioning certificate for the 100 Mw Bhadramali solar plant, and made its first-ever revenue (₹5.7 crore) from energy sales.
 "Coal India, Coal sector")