Coal India shares remained in focus on Monday after Nuvama Institutional Equities upgraded the stock to ‘Buy’ from ‘Hold’, citing stronger sales volumes, higher e-auction premiums and the proposed listing of subsidiary Mahanadi Coalfields Ltd (MCL).
According to Nuvama, Coal India’s sales volume increased 12.5% year-on-year in September 2026, while second-quarter FY27 volume rose around 12%. The company’s e-auction premium also jumped sharply to 94% in September from 59% in August, with the year-to-date premium at 54%.
The brokerage expects Coal India to benefit from stronger volumes and e-auction realisations in the second half of FY27, supported by firm domestic demand, higher global prices and increased thermal power generation. It raised its FY27 and FY28 EBITDA estimates by 6% and 4%, respectively.
Nuvama also increased its 12-month target price for Coal India to ₹501 from ₹454. The revised valuation includes an estimated dividend per share of ₹26.5.
Another potential catalyst is the proposed listing of MCL. Coal India has filed a draft red herring prospectus for the subsidiary’s public issue. MCL contributed 28% of Coal India’s total volume and 31% of EBITDA, excluding overburden removal, in FY26.
Separately, Equirus Securities upgraded Coal India to ‘Add’ last month and set a December 2027 target of ₹450.
While Coal India’s production declined 4.5% year-on-year during the first five months of FY27, dispatches increased 6.7%, highlighting stronger movement of coal despite lower output.
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