India: CIL records softer production and offtake in CY’25 on muted demand

• Production growth recorded only by SECL, MCL
• PSU miner’s coal output drops 2.3% y-o-y

Coal India Limited (CIL) reported a y-o-y increase in coal production in December 2025, with output reaching 75.7 million tonnes (mnt), up 4.6%, as per provisional data released by the company.

The growth was largely driven by strong performance by the South Eastern Coalfields Limited (SECL), which recorded a y-o-y increase of 28.2% in output. The improvement was supported by better mine availability, commissioning of additional capacity, and strengthened coal evacuation systems.

Eastern Coalfields Limited (ECL) and Central Coalfields Limited (CCL) also posted moderate y-o-y production growth of 3% and 2.6%, respectively, aided by stable operations and improved mine-level productivity.

However, production at Bharat Coking Coal Limited (BCCL), Northern Coalfields Limited (NCL), and Western Coalfields Limited (WCL) declined due to land acquisition delays, environmental and statutory bottlenecks, and operational constraints, which continued to restrict output from select mines.

Dec’25 offtake moderates on cautious procurement

Coal offtake during December stood at 64.9 mnt, registering a 5.2% y-o-y decline. This was primarily due to cautious procurement by power generators and industrial consumers, who relied on comfortable inventory levels and blended coal usage. Additionally, stable power demand and improved availability of imported coal reduced the urgency for incremental domestic coal offtake during the month.

Production declines on demand, logistical challenges

During the January-December 2025 period, CIL produced 767.16 mnt of coal, reflecting a y-o-y decline of 2.3%. The lower annual output was influenced by a combination of subdued incremental demand, selective capacity utilisation, and persistent logistical and regulatory challenges across key coal-bearing regions.

While BCCL, CCL, and WCL recorded notable production declines, SECL and Mahanadi Coalfields Limited (MCL) reported only marginal reductions, indicating relatively better operational resilience at these subsidiaries.

Offtake: Utilities maintain adequate stock levels

CIL’s coal offtake during CY25 stood at 745.9 mnt, down 2% y-o-y. The decline reflects adequate coal stock positions at power plants, stable electricity demand growth, and increased operational efficiency at thermal units, which collectively reduced the need for higher coal lifting. Industrial consumers also adopted a conservative procurement approach, aligning purchases closely with consumption requirements.

Outlook: Balanced supply strategy to persist

CIL’s production and offtake are expected to remain stable in the near term, supported by adequate inventories and steady power demand. While infrastructure improvements may offer limited upside, cautious procurement and selective capacity utilisation are likely to cap growth, keeping the focus on supply stability and operational efficiency.