Coal India, which produces about 80% of the country’s coal, reported a quarterly profit decline on Thursday as shipment volumes and prices fell amid weak power demand.

The state-run company, which mainly produces non-coking thermal coal for power generation and industrial use, said its consolidated net profit declined 20% year-on-year to 87.43 billion rupees ($998 million) in the quarter ended June 30.

Revenue from operations dropped 4.4% to 358.42 billion rupees.

Coal-fired power generation, which remains the dominant source of electricity in India, declined by nearly 3% in the first half of 2025.

Meanwhile, overall power output growth declined by 1.5% as a milder summer — driven by earlier-than-expected monsoon showers — reduced demand for coal.

Coal India’s average realisation from so-called e-auction sales stood at 2,331.51 rupees per ton in June-quarter, lower than the 2,410.94 rupees per ton in the year-ago period, while overall average price realisation of coal supplied rose by two rupees from a year ago.

The company gets 10% of its sales through e-auctions at near-spot rates, and sells the rest of its output to domestic customers through long-term contracts.
Source: Reuters