New Delhi: Coal India Ltd (CIL) has signed a memorandum of understanding with Konkan Railway Corporation Ltd to develop rail infrastructure for the company and its subsidiaries. The non-binding pact was signed in Kolkata on August 18, 2025.
"Coal India Ltd and Konkan Railway Corporation Ltd have executed a non-binding memorandum of understanding on August 18, 2025...with an intent of development of rail infrastructure of CIL and its subsidiaries," the company said in a regulatory filing.
The move is part of CIL’s broader push to strengthen coal transportation. The miner, which contributes over 80% of India’s coal output, had earlier signed a similar pact with Indian Port Rail & Ropeway Corporation Ltd for rail infrastructure development.
In FY25, CIL produced 781.1 million tonnes of coal, short of its annual target of 838 MT. For FY26, the company is targeting 875 MT in production and an offtake of 900 MT.
Shares of Coal India traded lower on Tuesday after the announcement. The stock was down 0.58% at ₹385.55 apiece on the National Stock Exchange, slipping to an intraday low of ₹384.25.
The dip followed the company’s June quarter earnings, where it reported a 20% year-on-year decline in consolidated net profit at ₹8,743 crore, compared to ₹10,959 crore a year ago. Revenue from operations dropped 4% YoY to ₹35,842 crore from ₹37,504 crore.
EBITDA stood at ₹12,521 crore, down 13% from ₹14,338 crore, while the EBITDA margin narrowed to 35% from 38%, largely due to higher expenses. Total expenses rose 2% YoY to ₹25,893 crore. The company’s total income for the quarter was ₹37,458.05 crore, down from ₹39,388.47 crore in the same period last year.
BI Bureau
