CIL's prospects expect to rise amid increased power demand

02 May 2022 CW Team

Coal shortages and rising power demand amid an intense summer have increased prospects for Coal India Limited (CIL).

With a strong demand driving prices for fossil fuel, domestic coal prices are also being supported by high international prices. Cheaper coal imports can help drive e-auction realisations.

With CIL set to gain sales volume and realisation front, earnings expectations are improving, resulting in a sharp uptick in the stock price.

Its sales volume at 662 million tonnes (mt) marked a 15% rise from FY21. Besides, its pit-head inventory at 57 mt in March is considered less because of the inadequate stock level at power plants.

According to the analysts, CIL's overall volume outlook remains strong. It expects off-take to accelerate from seasonally strong demand and high import prices. Besides, increased production at Bharat Coking Coal Limited (BCCL) and profitable subsidiaries, including Mahanadi Coalfields Limited (MCL), South Eastern Coalfields Limited (SECL) and Northern Coalfields Limited (NCL), are likely to expand margins.

CIL's supplies to the power sector have increased by 14.2% in the first half of April, from the same period last year to 1.64 mt. Its production increased by 27% from 26.4 mt in the first half of April.

CareEdge Ratings said that the dependence on domestic production is set to rise as prices surge amid geopolitical tensions. Higher domestic coal dispatches to the power sector were due to reduced coal imports, apart from an increase in overall demand for power generation with a resumption in economic activity.

Robust volumes are also boosting margins at CIL. According to a report, CIL's e-auction premium of 290% this March was at a record high compared to February with 120%, with volumes doubling sequentially to 7.9 mt. Analysts expect dispatches to remain at elevated levels and a pick-up in non-power off-take after plant inventory normalises.

Image Source

Also read: CIL offered 160.5 mt till Feb under e-auction of coal

Coal shortages and rising power demand amid an intense summer have increased prospects for Coal India Limited (CIL). With a strong demand driving prices for fossil fuel, domestic coal prices are also being supported by high international prices. Cheaper coal imports can help drive e-auction realisations. With CIL set to gain sales volume and realisation front, earnings expectations are improving, resulting in a sharp uptick in the stock price. Its sales volume at 662 million tonnes (mt) marked a 15% rise from FY21. Besides, its pit-head inventory at 57 mt in March is considered less because of the inadequate stock level at power plants. According to the analysts, CIL's overall volume outlook remains strong. It expects off-take to accelerate from seasonally strong demand and high import prices. Besides, increased production at Bharat Coking Coal Limited (BCCL) and profitable subsidiaries, including Mahanadi Coalfields Limited (MCL), South Eastern Coalfields Limited (SECL) and Northern Coalfields Limited (NCL), are likely to expand margins. CIL's supplies to the power sector have increased by 14.2% in the first half of April, from the same period last year to 1.64 mt. Its production increased by 27% from 26.4 mt in the first half of April. CareEdge Ratings said that the dependence on domestic production is set to rise as prices surge amid geopolitical tensions. Higher domestic coal dispatches to the power sector were due to reduced coal imports, apart from an increase in overall demand for power generation with a resumption in economic activity. Robust volumes are also boosting margins at CIL. According to a report, CIL's e-auction premium of 290% this March was at a record high compared to February with 120%, with volumes doubling sequentially to 7.9 mt. Analysts expect dispatches to remain at elevated levels and a pick-up in non-power off-take after plant inventory normalises. Image Source Also read: CIL offered 160.5 mt till Feb under e-auction of coal

Resources

09 Mar 2026

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Real Estate

09 Mar 2026

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Real Estate

09 Mar 2026

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..