Coal India Shares: Should you buy, sell or hold Maharatna PSU stock?

COALINDIA Q4FY26 Earnings: State-run Coal India Ltd (CIL) on Monday reported a better-than-expected set of net profit, revenue and EBITDA for the quarter ended March 31, though the Maharatna PSU's quarterly margin failed to meet analysts' expectations. Here's what analysts at brokerages including Jefferies and Citi make of the state-run coal giant after its March-quarter results.

Coal India Q4 Results: EBITDA, margin, top and bottom lines vs estimates

After market hours on Monday, Coal India posted 5.8 per cent year-on-year growth in its fourth-quarter revenue to Rs 46,490 crore.

Its net profit expanded to Rs 10,839 crore for the January-March period, marking an increase of 11 per cent over the year-ago period, according to a regulatory filing.

The Maharatna PSU's Q4 EBITDA came in at Rs 12,673 crore, up 6 per cent, with a 20-basis-point increase in its margin to 27.3 per cent.

Although its EBITDA was in line with analysts' expectations, the coal giant's margin missed the mark.

According to Zee Business analysts, CIL was estimated to report a net profit of Rs 8,739 crore, EBITDA of Rs 11,379 crore and margin of 30 per cent.

For the year ended March 31, its realisation -- a key measure of top line -- fell 14.6 per cent to Rs 1,571.8 per tonne.

Read more on CIL results

Coal India Ltd, one of the country's top dividend payers

Coal India, one of the most consistent dividend-paying PSUs in the country, declared a final payout of Rs 5.25 per equity share for FY26.

That translates to a 52.5 per cent dividend given the face value of its shares.

The latest dividend takes the PSU's total payouts to Rs 26.50 per equity share in 2025-26.

Should you buy, sell or hold COALINDIA shares?

Jefferies maintained its 'buy' rating on Coal India while raising its target price for the stock by Rs 15 to Rs 500.

The foreign brokerage's target implies an upside of more than 10 per cent in the stock from its current level.

Morgan Stanley, which retained its 'equal-weight' rating, said the PSU's quarterly EBITDA was around 6 per cent its estimates. The brokerage's target, at Rs 410, indicates a downside of 9.5 per cent from the current market price.

Here's a summary of the latest ratings and target prices by various brokerages after the earnings announcement:

Market guru Anil Singhvi's view

Zee Business Managing Editor Anil Singhvi sees support for Coal India futures coming in at Rs 440 now, with a higher level expected at Rs 463.

The PSU's results are strong on all fronts, according to the market wizard.

Coal India shares

On Monday, Coal India shares fell 0.7 per cent to close at Rs 452.9 apiece on BSE, underperforming a 0.8 per cent rise in the Nifty 50 after three straight sessions of losses.

At this level, the CIL stock has risen 13.5 per cent for the year, outperforming a 7.9 per cent fall in the Nifty 50 and nearly at par with a 14.6 per cent rally in the Nifty Energy.

The stock enjoys a weightage of around 1.4 per cent in the Nifty 50.