Coal India Q1 Production Falls Seven Point Five Per Cent

06 Jul 2026 CW Team

Coal India Ltd reported a drop of seven point five per cent in first quarter coal production to 169.6 million tonne (mn t) amid sustained power sector demand. The decline came despite higher consumption over the summer and contrasts with the previous April–June period when the company produced 183.3 million tonne. Coal India, which accounts for over 80 per cent of the country's coal output, remains the principal supplier to thermal generation.

Monthly output in June edged down zero point six per cent to 57.4 mn t from 57.8 mn t a year earlier, with some producing arms showing negative growth. Bharat Coking Coal Ltd and Mahanadi Coalfields Ltd recorded declines in June while South Eastern Coalfields Ltd, Eastern Coalfields Ltd, Central Coalfields Ltd and Western Coalfields Ltd reported month-on-month gains. The company attributed the mixed performance to operational factors across mines and varying demand patterns among customers.

The sales or offtake strengthened as customers took more coal, rising seven point five per cent to 65.8 mn t in June from 61.2 mn t a year ago. Offtake in the April–June quarter was up three point five per cent to 197.7 mn t from 191 mn t in the year-ago period. For the full fiscal year, output slipped one point seven per cent to 768.1 mn t from 781.1 mn t in the previous fiscal year.

The Power Minister said India had reached an all-time peak power demand of 271 GW in May 2026 and planned capacity for 300 GW as demand is projected to rise by a further 30 GW. He also noted that energy security had been sustained despite recent geopolitical events. Coal India operates through eight main fully owned producing subsidiaries and plays a central role in ensuring fuel supply while coal continues to account for roughly 70 per cent of the country's power generation.

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