On Monday, shares of Coal India Ltd. experienced a notable increase, climbing as much as 3.04% to reach Rs 394.95 per share. This surge came on the heels of the company’s solid performance in its fourth-quarter financial results, which showcased impressive growth and profitability.

Strong Financial Performance

The operating profit for the quarter, which reflects earnings before interest, taxes, depreciation, and amortization (EBITDA), rose by 3.5% to Rs 11,790.45 crore, up from Rs 11,332 crore the previous year. This growth is indicative of the company’s robust operational efficiency and market presence.

• Margin Expansion: Coal India reported an increase in its margin, which improved to 31.2% from 29.8% compared to the same quarter last year.

Dividend Announcement

In addition to the encouraging financial results, Coal India also announced a final dividend of Rs 5.15 per share for the fiscal year 2025. This dividend will be distributed within 30 days following its declaration at the upcoming annual general meeting.

• Government Stake: The Indian government, which holds a 63.13% stake in Coal India, is set to receive a substantial Rs 2,003 crore in dividends.

Healthy Financial Position

As of March 2025, Coal India boasts a solid cash position, with Rs 11,160.68 crore in cash and cash equivalents on a consolidated basis. This financial strength positions the company well for future investments and shareholder returns.

Market Performance Overview

Following the announcement, Coal India shares initially surged before settling at a 2.91% increase, trading at Rs 394.45 as of 9:47 a.m. This rise contrasts with a slight decline of 0.10% in the NSE Nifty 50 index. Over the past year, Coal India’s stock has seen a decline of 16.44%, although it has gained 1.03% year-to-date.

• Trading Volume: On this particular day, trading volume was reported at 1.57 times its 30-day average, indicating heightened investor interest.

Conclusion

The recent performance of Coal India Ltd. underscores its resilience in a challenging market. With strong financial results and a commitment to returning value to shareholders through dividends, the company appears poised for continued growth. Investors should keep an eye on the upcoming announcements regarding the record date for the dividend, which will be communicated in due course.

For those interested in market trends and stock performance, following updates on Coal India and other major players can provide valuable insights into investment opportunities.