- Dec’25 logs one of highest monthly production run-rates of FY’26
- CPP, steel, cement sector demand drives higher industrial offtake
India’s coal sector closed December 2025 on a stronger and more balanced footing. Coal production rebounded sharply after the monsoon-impacted months, offtake recovered across both power and industrial users, and rail logistics supported higher evacuation without visible stress. While total dispatch remained marginally below December 2024, the demand mix and logistics performance marked a clear improvement over November 2025 and pointed to a more demand-aligned coal supply chain.
Production rebounds sharply in Dec’25
Coal production rose by 9.6% m-o-m and 3.6% y-o-y to 101.45 million tonnes (mnt) in December. This reflected seasonal normalisation after the monsoon period, improved mine productivity, and a year-end production push by Coal India Limited, Singareni Collieries Company Limited, and captive producers. December marked one of the strongest monthly production run-rates of FY’26 so far.
Offtake recovers from weak base in Nov’25
Coal offtake rose sharply m-o-m by 14% in December. Although dispatch volumes remained slightly lower by 2.6% than December 2024, the rebound was sufficient to absorb higher production and prevent fresh stock accumulation.
Power still dominates offtake, but industrial demand strengthens
Dispatches to the power sector rebounded strongly by 14.8% m-o-m, supported by higher winter electricity demand and rising plant load factors. However, power offtake remained lower by 7% y-o-y, reflecting adequate coal availability and reduced stress-driven prioritisation.
In contrast, demand from the non-regulated sector strengthened materially, led by captive power plants (CPPs), steel, and cement. This indicates healthier industrial activity and a more diversified coal demand profile compared with earlier periods.
Rail logistics support higher evacuation without stress
Rail logistics remained the backbone of coal evacuation. While average daily rake loading in December 2025 was marginally lower by 3.1% than a year earlier, it improved by 2% from November levels and was adequate to support higher offtake. Importantly, logistics functioned without congestion, reflecting better coordination between mines, railways, and end-users.
Bottom line
December 2025 signals stability across the coal system. Production recovery, broader offtake, and stable rail logistics moved in sync, reducing volatility and inventory stress. Compared with November 2025 and December 2024, the coal supply chain showed a shift towards planned, demand-aligned operations.
Leave a Reply