Coal India shares rise 2% after Q4 results 2025. Should you buy, sell or hold?

Coal India share price surged as much as 1.98 per cent in early trade on Thursday after the company reported robust performance for the March 2025 quarter.

At 9:15 am, Coal India share price opened at ₹390.95 apiece on May 8, as against the previous close of ₹383.30.

The state-owned company on Wednesday announced that its consolidated net profit rose by 12% to ₹9,593 crore in the fourth quarter of the financial year 2024-25 (FY25), up from ₹8,530 crore in the same quarter last year.

Revenue from operations for the January–March 2025 quarter saw a slight decline of 1% to ₹37,825 crore from ₹38,213 crore in the same period last year.

The Board, in its meeting held on Wednesday, also proposed a final dividend of ₹5.15 per share for the financial year 2024–25.

Total expenses for the March 2025 quarter saw a modest increase, reaching ₹29,057 crore, compared to ₹28,950 crore in the same quarter last year.

Coal India’s raw coal production for the quarter ended March 2025 was 237.69 million tonnes, marking a 1.7% year-on-year decrease from 241.75 million tonnes in Q4 FY24.

“Coal India reported a strong quarterly performance, with Q4FY25 EBITDA at Rs132.9bn (+2.5% vs Emkay; +17.3% vs consensus). The performance in Q4 is on the back of 1) better-than-expected e-auction premiums of 69% vs our estimates of 55%, despite lower thermal coal prices globally (down 22.5% QoQ to USD108/t); 2) employee cost coming in lower than our estimate even though it has gone up sequentially; 3) accounting for lower reversal from stripping activities at Rs5.5bn vs Rs8.3bn in Q3. While FSA price was up 2.2% QoQ, offtake was also up, by 3.7% sequentially driven by 12.1% QoQ increase in e-auction volumes. Net cash position enhanced by 5.7% YoY to ₹253 bn. COAL declared final dividend of Rs5.15/sh, in line with our estimates,” said Amit Lahoti, Senior Research Analyst at Emkay Global Financial Services.

Coal India share - Should you buy or sell?

Lahoti of Emkay Global Financial Services has maintained a ‘buy’ rating with an unchanged target price of ₹475 on Coal India shares. “With most of our assumptions around volumes, prices, and costs largely unchanged, our earnings estimates for FY26/27 change marginally. Valuations remain undemanding with one-year forward P/E of 7x vs 10-year average of 9.7x. We therefore maintain BUY with unchanged target price of ₹475,” he added.

Mahesh M Ojha, AVP — Research at Hensex Securities, said Coal India shares are facing a minor hurdle at ₹396 apiece. On breaking above this resistance, the share price may soon touch the ₹420 per share mark, according to the analyst.

“Those who have Coal India shares in their portfolio are advised to hold the scrip, maintaining a stop loss at ₹368. Fresh investors can also initiate momentum buying at the current market price for a short-term target of ₹420, maintaining a strict stop loss at ₹368,” Ojha said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.