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Coal India Q3 Results
Coal India Q3 Results: Net Profit Declines 17% to ₹8,491 Crore, Announces 2nd Interim Dividend

Coal India Ltd: Overview

Coal India Ltd (CIL), a Maharatna company, is the world’s largest coal producer and a major player in India’s energy ecosystem. Established in 1975 and headquartered in Kolkata, CIL operates under the Ministry of Coal, Government of India. It plays a pivotal role in meeting India’s energy demands, supplying over 80% of the country’s coal requirements. CIL’s operations span coal mining, production, and supply to diverse sectors such as power, steel, cement, and fertilizers. 

India’s coal sector is critical for supporting its growing economy, as coal remains the primary source of energy generation, contributing nearly 60% to the country’s electricity production. However, the industry is also undergoing a transformation, driven by increasing environmental concerns, the shift towards renewable energy, and technological advancements to improve efficiency and reduce emissions. Despite these challenges, CIL remains central to India’s energy security strategy, catering to the ever-growing demand for coal with consistent production growth and operational improvements. 

Latest Stock News 

Coal India declares a 2nd interim dividend of ₹5.6 per share. In November 2024, Coal India Limited (CIL) took a major step toward sustainability by commissioning a 50 MW solar power plant, its largest to date, at Northern Coalfields Limited (NCL) in Nigahi. A few weeks later, on December 2, 2024, CIL signed an MoU with Bharat Petroleum Corporation Limited (BPCL) to explore a ground breaking Coal-to-Synthetic Natural Gas project at Western Coalfields Limited (WCL) using surface coal gasification technology. The Ministry of Coal further bolstered these efforts by approving a financial incentive of ₹1,350 crore for each of three coal gasification projects. 

CIL also collaborated with IREL (India) Ltd through a MoU signed on January 6, 2025, to jointly develop critical mineral assets. Meanwhile, Mahanadi Coalfields Limited (MCL) recorded its first-ever income of ₹241 crore from the Basundhara rail line during the first nine months of FY 2024-25. Operationally, the company achieved a notable reduction of ₹365 crore in explosive expenses, although repair and maintenance costs rose by ₹89 crore. However, challenges persisted. Bharat Coking Coal Limited (BCCL) grappled with land issues and fires in overburden (OB) and coal benches. At the same time, excessive rainfall, nearly double that of the previous fiscal year, significantly impacted operations at NCL. 

Business Segments

  • Coal Mining and Production: CIL operates over 352 mines, categorized into underground, opencast, and mixed mines. The company’s production volumes stood at 703.2 million tonnes (MT) in FY23, a 12% year-on-year growth, with plans to achieve 1 billion tonnes of annual production by FY26. This aligns with India’s goal of reducing coal imports and boosting domestic supply. 
  • Coal Supply and Distribution: Coal India ensures reliable and efficient coal delivery through its robust distribution network, which includes rail, road, and dedicated freight corridors. The e-auctions play an important role here. Power utilities remain the largest consumers, accounting for approximately 80% of CIL’s total coal sales. The company also caters to non-power sectors like cement, steel, and chemicals. 
  • Coal Beneficiation: To address the growing demand for higher-grade coal and reduce the ash content, CIL operates 15 coal washeries (11 coking and 4 non-coking). These washeries play a vital role in improving the quality of coal supplied to industrial users, particularly in the steel sector. CIL is planning to expand its coal beneficiation capacity in the coming years to meet evolving market needs. 
  • Renewable Energy Initiatives: In line with India’s renewable energy goals, CIL is diversifying into solar and wind energy. The company has already set up solar projects at various locations and plans to invest ₹5,650 crore to develop 3 GW of renewable energy capacity by FY27. These initiatives align with CIL’s long-term sustainability strategy and the government’s focus on reducing carbon emissions. 

Subsidiary Information

  • Mahanadi Coalfields Limited (MCL): Mahanadi Coalfields Limited (MCL), established in 1992 and headquartered in Sambalpur, Odisha, is one of Coal India Ltd’s largest and most productive subsidiaries. Operating across Odisha, MCL plays a crucial role in India’s energy sector, contributing over 190 million tonnes (MT) of coal production in FY23. The company primarily caters to the power, steel, and cement industries, with a focus on large-scale opencast mining projects. MCL emphasizes sustainability and technological advancements to maintain operational excellence. 
  • Northern Coalfields Limited (NCL): Northern Coalfields Limited (NCL), established in 1986, is headquartered in Singrauli, Madhya Pradesh. NCL operates primarily in Madhya Pradesh and Uttar Pradesh, focusing on opencast mining to meet regional power demands. It produced over 122 MT of coal in FY23, making it a significant contributor to Coal India Ltd’s output. NCL is a key supplier to major clients like NTPC and has built a reputation for its highly mechanized operations. The company also prioritizes environmental management and community development, aligning with its commitment to sustainable mining practices. 
  • South Eastern Coalfields Limited (SECL): South Eastern Coalfields Limited (SECL), founded in 1985, is headquartered in Bilaspur, Chhattisgarh. It is Coal India Ltd’s largest subsidiary in terms of geographical area, operating across Chhattisgarh and Madhya Pradesh. SECL specializes in both opencast and underground mining and recorded a production of approximately 162 MT in FY23. It is a major coal supplier for the power, steel, and cement industries. SECL is actively involved in enhancing coal evacuation infrastructure and adopting eco-friendly mining techniques, further cementing its leadership in India’s coal sector. 
  • Western Coalfields Limited (WCL): Western Coalfields Limited (WCL), established in 1975 and headquartered in Nagpur, Maharashtra, operates across Maharashtra and Madhya Pradesh. WCL specializes in both opencast and underground mining, producing around 57 MT of coal in FY23. The subsidiary plays a vital role in meeting the energy demands of western India, supplying coal to thermal power plants and other industries. WCL is also dedicated to environmental conservation through initiatives like afforestation and reclaiming mined-out areas. Its focus on sustainable mining ensures long-term regional energy security. 
  • Central Coalfields Limited (CCL): Central Coalfields Limited (CCL), founded in 1975 and headquartered in Ranchi, Jharkhand, operates extensively in the coal-rich regions of Jharkhand. CCL produced approximately 74 MT of coal in FY23, serving power, steel, and cement sectors across the country. With a mix of opencast and underground mines, the subsidiary focuses on modernizing its operations through the adoption of advanced technologies. CCL is also developing coal washeries to supply cleaner coal, aligning with its commitment to environmental sustainability and meeting the rising demand for high-quality coal. 

Q3 FY25 Earnings 

  • Revenue of ₹35780 crore in Q3 FY25 down by 1.03% YoY from ₹36154 crore in Q3 FY24.  
  • EBITDA of ₹12317 crore in this quarter at a margin of 34% compared to 36% in Q3 FY24. 
  • Profit of ₹8491 crore in this quarter compared to a ₹10292 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 36154 35780 138252 142324 
Expenses 23183 23463 94020 94352 
EBITDA 12971 12317 44232 47971 
OPM 36% 34% 32% 34% 
Other Income 2489 2214 6560 8396 
Net Profit 10292 8491 31723 37396 
NPM 28.6% 23.7% 22.9% 26.3% 
EPS 16.6 13.8 51.5 60.7 
Adani Green Energy Ltd
Adani Green Energy Ltd: Pioneering India’s Clean Energy Future

Company Overview 

Established in 2015, Adani Green Energy Limited (AGEL) is one of India’s leading renewable energy companies, dedicated to harnessing solar and wind power for a sustainable future. Headquartered in Ahmedabad, Gujarat, AGEL is a key subsidiary of the Adani Group, a diversified conglomerate renowned for its contributions across various industries. AGEL operates a robust portfolio of renewable energy assets, with projects strategically located across India. As of 2024, the company boasts an operational capacity of over 8 GW and a total portfolio of nearly 20 GW, including assets under construction. AGEL is committed to achieving its ambitious target of 45 GW renewable capacity by 2030, reinforcing its role as a global leader in clean energy. 

The company has established itself as a pioneer in adopting cutting-edge technology and innovative practices. AGEL integrates artificial intelligence and machine learning to optimize energy production and enhance operational efficiency. Its extensive use of predictive maintenance ensures reliability and cost-effectiveness, making it a preferred partner for power utilities and governments. A cornerstone of AGEL’s strategy is its long-term Power Purchase Agreements (PPAs) with reputed off-takers, which ensure stable cash flows and reduced market volatility. These agreements, often spanning 25 years, reflect the trust and confidence of stakeholders in AGEL’s capabilities. 

Adani Green has also made significant strides in sustainability and environmental stewardship. By offsetting millions of tons of carbon dioxide emissions annually, the company actively contributes to India’s climate action goals and aligns with global ESG (Environmental, Social, Governance) standards. AGEL’s efforts have been recognized globally, including awards for excellence in renewable energy development and corporate responsibility. With its strong domestic foundation, forward-looking strategies, and unwavering commitment to sustainability, Adani Green Energy Limited continues to lead India’s transition to a green energy future. By leveraging its innovative approach and operational expertise, AGEL aims to play a pivotal role in shaping a sustainable and energy-secure world. 

Returns Summary

YTD 1 Month 6 Month 1 Year 2 Year 3 Year 5 Year 
-35.44% -2.02% -43.10% -32.78% -42.93% -25.60% 592.94% 

Result Highlights

Adani Green Energy Limited (AGEL) has reported robust financial and operational performance for the second quarter of fiscal year 2025 (Q2 FY25), reflecting significant growth across key metrics. 

  • Revenue Growth: AGEL’s revenue from operations increased by 30% year-over-year (YoY) to ₹3,376 crore in Q2 FY25, up from ₹2,589 crore in the same quarter of the previous year. 
  • Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.  
  • Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.  
  • Capacity Expansion: The operational capacity grew by 34% YoY to 11,184 megawatts (MW), driven by substantial greenfield additions, including 2,000 MW of solar capacity and 250 MW of wind capacity in Khavda, 418 MW of solar capacity in Rajasthan, and 200 MW of wind capacity in Gujarat.  
  • Energy Sales: Energy sales increased by 20% YoY, totalling 14,128 million units in H1 FY25, attributed to the robust capacity additions and strong operational performance. 
  • Cash Profit: The company’s cash profit surged by 27% YoY to ₹2,640 crore, reflecting enhanced financial strength.  
  • Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.  
  • Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.  
  • Debt Management: AGEL fully redeemed a USD 750 million Holdco bond, aligning with its commitment to systematic deleveraging and robust capital management. 

Recent Developments 

In November 2024, AGEL faced legal challenges when U.S. authorities indicted founder Gautam Adani and key executives on charges of bribery, alleging a $265 million scheme to secure power supply contracts in India. These allegations led to a substantial decline in AGEL’s stock value, erasing approximately $9.6 billion in market capitalization.  Following these developments, S&P Global Ratings revised its outlook on AGEL from ‘stable’ to ‘negative,’ citing concerns over the company’s ability to access funding and maintain investor confidence. As of December 24, 2024, AGEL’s stock closed at ₹1,031.05, reflecting a year-to-date decline of approximately 32.75%. The company’s market capitalization stands at ₹1.63 trillion. Key financial ratios include a Price-to-Earnings (P/E) ratio of 144.79 and a Price-to-Book (P/B) ratio of 9.39.  

AEGL Outlook and contribution to Industry 

AGEL remains on track to achieve its 2030 renewable energy capacity target of 50 GW, including at least 5 GW of energy storage. The company’s focus on sustainability, operational excellence, and governance practices positions it favourably for continued industry-leading growth.  

AGEL has set ambitious goals to significantly expand its renewable energy capacity. The company plans to invest approximately ₹1,500 billion (US$18 billion) to increase its wind and solar capacity at Khavda in Gujarat’s Kutch region from 2 GW to 30 GW by 2030. This expansion is part of AGEL’s broader target to achieve 45 GW of renewable energy capacity by 2030, contributing to India’s sustainable energy transition.  In line with its growth strategy, AGEL is embracing advanced technologies to enhance operational efficiency. The company is integrating Industry 4.0 solutions, such as N3uron’s technology, to optimize its renewable energy operations.  

AGEL plays a vital role in India’s renewable energy landscape. As of March 2019, the company managed approximately 5,290 MW of wind and solar power plants across 11 states in India, with an operational capacity of around 2,360 MW.  AGEL’s projects contribute significantly to India’s renewable energy targets, supporting the nation’s commitment to increasing the share of renewables in its energy mix. One of AGEL’s notable projects is the Khavda Renewable Energy Plant, which, upon completion, is expected to be the world’s largest renewable energy plant, covering an area five times the size of Paris.  This project exemplifies AGEL’s commitment to large-scale renewable energy development and its contribution to global clean energy initiatives. 

In summary, AGEL’s strategic investments and large-scale projects position it as a key contributor to India’s renewable energy sector, aligning with global sustainability goals and supporting the country’s energy transition efforts. 

Balance Sheet & Cash Flow Analysis 

Adani Green Energy Ltd (AGEL) is demonstrating significant growth, driven by substantial investments in renewable energy infrastructure. Over the years, the company has increased its equity capital modestly from ₹1,564 crores in 2022 to ₹1,584 crores in 2024, while reserves have grown impressively from ₹-71 crores in 2017 to ₹8,992 crores in 2024, reflecting improved profitability and financial health. The company’s borrowings have surged from ₹4,347 crores in 2017 to ₹67,430 crores in 2024, showcasing its reliance on debt to finance its aggressive expansion strategy. This increased leverage, while supporting growth, also presents potential risks if the returns on these investments fall short. 

AGEL’s fixed assets have grown substantially, from ₹4,341 crores in 2017 to ₹64,632 crores in 2024, indicating heavy investments in renewable energy projects. The company’s investments in Capital Work in Progress (CWIP) and other long-term assets signal its continued expansion. Despite negative cash flows from investing activities, which reflect heavy capital expenditures, AGEL has shown strong operational cash flow, growing from ₹28 crores in 2017 to ₹7,713 crores in 2024. This reflects the company’s increasing profitability and its ability to generate internal funding for growth. 

However, AGEL’s heavy reliance on debt financing and its large-scale investments could pose risks, especially if the returns on its projects do not materialize as expected. Effective debt management and successful project execution will be essential for maintaining financial stability. Overall, while AGEL’s growth prospects remain strong, careful monitoring of leverage and cash flow management will be crucial to sustaining its expansion and ensuring continued financial health.