India: CIL FY’26 coal production falls as weak offtake and uneven output signal demand-side pressure

• CIL FY’26 production dips 1.7% y-o-y amid uneven subsidiary performance
• Offtake down 2.4% y-o-y, indicating weak demand

Coal India Limited (CIL) reported a marginal decline in both coal production and offtake for FY’26 (April 2025-March 2026), reflecting uneven subsidiary performance and softer dispatch trends, as per provisional data.

The company’s total coal production stood at 768.1 million tonnes (mnt) in FY’26, down 1.7% year-on-year compared to 781.1 mnt in the previous year. However, production in March 2026 showed a slight contraction of 1.5% y-o-y at 84.5 mnt, indicating limited year-end momentum.

Mixed production performance across subsidiaries

Among subsidiaries, South Eastern Coalfields Limited (SECL) emerged as the key growth driver, registering a 5.3% increase in annual production to 176.3 mnt in FY’26, while Northern Coalfields Limited (NCL) reported marginal growth of 1.1% to 140.5 mnt. In contrast, Mahanadi Coalfields Limited (MCL), the largest contributor, witnessed a 3% decline to 218.3 mnt, weighing on overall output. Bharat Coking Coal Limited (BCCL) also reported decline sharply by 12% y-o-y in FY’26 totaling at 35.5 mnt.

Other subsidiaries such as Central Coalfields Limited (CCL) and Western Coalfields Limited (WCL) also reported declines, highlighting broad-based production pressure.

Weak offtake reflects demand constraints

On the offtake front, CIL’s coal dispatches fell 2.4% y-o-y to 744.8 mnt in FY’26, compared with 763 mnt last year, suggesting weaker demand absorption despite stable production levels. March 2026 offtake remained largely flat, rising marginally by 0.7% y-o-y to 69.5 mnt.

SECL was again the only major subsidiary to post growth in dispatches, increasing 4.6% y-o-y, while most others-including CCL, WCL, and BCCL-recorded double-digit declines. MCL’s offtake remained broadly flat, indicating demand-side constraints at key operations.

Outlook: Supply-demand imbalance persists

Overall, the data points to a mild supply-demand imbalance, where stable production is not fully matched by offtake, leading to potential inventory build-up. While select subsidiaries continue to perform well, weakness across major arms and subdued dispatch trends suggest that demand recovery remains uneven, keeping near-term coal market sentiment cautious.