This Coal PSU Stock Rises 132% in 5 Years: Dividends Sweeten the Return
- September 11, 2026
- Posted by: Harsh Piplani
- Category: Best Stocks
CMP approx Rs 432.45 (11 Sep 2026). 5-year return 132.15%. 52W range Rs 369.60 to Rs 491.25. Market cap approx Rs 2.66 lakh Cr. Dividend yield approx 6.1%.
Quick Answer
Coal India, the state-owned miner behind most of the country’s coal supply, is the coal PSU stock that returned approximately 132% in five years. The share rose from about Rs 186 as profit nearly tripled between FY21 and FY24, and rich dividends pushed the total return close to 200%. Recent returns are weak, with profit flat and a 2% government stake sale in May 2026.
This coal PSU stock has turned Rs 1 lakh into roughly Rs 2.32 lakh over five years, before counting a single rupee of dividend. A 5-year return of 132.15% placed it 48th in a screen of 101 large-cap and mid-cap NSE shares, as of 10 September 2026.
The company is Coal India Ltd (NSE: COALINDIA), the state-owned miner that produces most of the coal India burns for power. The Coal India share price was trading at approximately Rs 432.45 on the morning of 11 September 2026, marginally above the previous close of Rs 432, giving the company a market value of approximately Rs 2.66 lakh crore. With a dividend yield of around 6.1%, the payouts have added a large second layer to the price gain.
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How Much Has This Coal PSU Stock Returned in 5 Years?
The short answer is 132.15% in price terms over five years, the 48th best result out of 101 stocks in our screen. Five years ago this coal PSU stock traded at approximately Rs 186. Today it sits near Rs 432, well below its 52-week high of Rs 491.25 but comfortably above its 52-week low of Rs 369.60.
The shorter periods tell a very different story. For this coal PSU stock, the one-year return is 10.42%, ranked 70th, and the 3-year return is 44.89%, ranked 73rd. The 6-month return is minus 7.24%, one of the weakest in the screen at 97th, while the 1-month return of 4.31% ranks 47th. Most of the heavy lifting for this coal PSU stock happened in the first half of the five-year window.
| Period | Return | Rank (out of 101) |
|---|---|---|
| 1 Month | 4.31% | 47 |
| 6 Months | -7.24% | 97 |
| 1 Year | 10.42% | 70 |
| 3 Years | 44.89% | 73 |
| 5 Years | 132.15% | 48 |
Returns are simple price changes and are not annualised. There was no stock split or bonus issue in the five-year window, so the 132% gain is genuine price appreciation. The figures also exclude dividends, which matter more for this coal PSU stock than for almost any other large company on the exchange.
Why Did This Coal PSU Stock Rise 132% in 5 Years?
Four forces explain the move in this coal PSU stock: an earnings jump after the 2022 global energy shock, a steady stream of fat dividends, a rerating of state-run companies, and fresh growth plans.
1. Profits Nearly Tripled After the 2022 Energy Shock
When global coal and gas prices spiked in 2022, Indian power plants and industries turned to domestic supply. Premiums on coal sold through e-auctions rose sharply, and this coal PSU stock saw its annual net profit jump from about Rs 12,702 crore in FY21 to Rs 17,378 crore in FY22 and Rs 31,723 crore in FY23.
Profit peaked at approximately Rs 37,369 crore in FY24. Revenue climbed from Rs 93,818 crore in FY21 to over Rs 1.52 lakh crore by FY24, and the operating margin widened from about 25% to nearly 39%. That earnings step-up is the single biggest reason this coal PSU stock more than doubled.
2. A Dividend Machine That Paid Investors to Wait
Dividend per share rose from Rs 16 in FY21 to Rs 17 in FY22, Rs 24.25 in FY23, Rs 25.50 in FY24 and Rs 26.50 in each of FY25 and FY26. Add the Rs 5.50 interim already declared for FY27, and a holder from five years ago has received roughly Rs 125 per share in declared dividends.
On an entry price of about Rs 186, that is around two-thirds of the original cost returned in cash. It lifts the approximate total return of this coal PSU stock, dividends included, to nearly 200% over five years. The current dividend yield of around 6.1% is among the highest of any large Indian company, which keeps income-focused investors interested in this coal PSU stock even when the price stalls.
3. The Rerating of State-Run Companies
Five years ago, this coal PSU stock traded at a very low valuation because investors worried about the long-term future of coal and about government control. As profits surged and the country kept adding power demand, state-run companies as a group were rerated between 2023 and 2024, and this coal PSU stock was part of that move.
For a coal PSU stock, the demand picture matters most. Coal still meets the bulk of India’s electricity needs, and supply security for power plants remains a policy priority, which underpins volumes for the largest producer.
4. Growth Plans Beyond Mining
The company targets 1 billion tonnes of coal production by FY28 to FY29. It is also adding newer businesses, including a 500 MW solar project in Uttar Pradesh and rare earth element work in Maharashtra, which give this coal PSU stock a small hedge against the energy transition.
Earlier in 2026, tensions around Iran pushed global energy prices higher, which prompted some users to shift from imported fuel to domestic coal and supported e-auction realisations. That helped this coal PSU stock reach its 52-week high of Rs 491.25 before it cooled.
Why Has This Coal PSU Stock Been Weak in the Last 6 Months?
The simple answer is flat earnings and a government stake sale. FY26 net profit fell approximately 12% to Rs 31,071 crore as production slipped to 768.19 million tonnes from 781.06 million tonnes and offtake fell to 744.88 million tonnes from 762.98 million tonnes.
In late May 2026, the government sold up to 2% of the company through an offer for sale at a floor price of Rs 412. The non-retail portion was subscribed over four times, but the extra supply of shares capped the price of this coal PSU stock.
The latest monthly numbers for this coal PSU stock are mixed. In August 2026 production fell 5.7% to 47.5 million tonnes, while offtake rose 5.5% to 60.6 million tonnes. For April to August, offtake is up 6.7% even though output is down 4.5%, as the company draws down its high pithead stocks.
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Coal India Financials: Steady Profit in Q1 FY27
The Coal India share price has been supported by earnings that are stable rather than growing. In Q1 FY27, revenue from operations rose 7.77% to Rs 46,255 crore, while net profit edged up 0.71% to Rs 8,850 crore from Rs 8,788 crore a year earlier.
Costs are the pressure point for this coal PSU stock. Total expenses rose about 11.9% to Rs 36,816 crore, which pulled the net margin down from the strong March quarter. Offtake rose 4% to 197.86 million tonnes, but production dropped 7% to 169.63 million tonnes.
| Quarter | Total Income (Rs Cr) | EBITDA (Rs Cr) | Net Profit (Rs Cr) | Net Margin |
|---|---|---|---|---|
| Jun 2025 (Q1 FY26) | 44,535 | 14,204 | 8,788 | 20.5% |
| Sep 2025 (Q2 FY26) | 32,327 | 8,857 | 4,263 | 16.2% |
| Dec 2025 (Q3 FY26) | 37,316 | 11,723 | 7,166 | 23.2% |
| Mar 2026 (Q4 FY26) | 51,618 | 17,801 | 10,908 | 23.3% |
| Jun 2026 (Q1 FY27) | 48,295 | 14,109 | 8,850 | 19.1% |
The September quarter is seasonally the weakest for this coal PSU stock because the monsoon slows mining and dispatch. On trailing twelve-month earnings of about Rs 50.6 per share, this coal PSU stock trades at roughly 8.5 times earnings, below an industry PE of about 16. Debt to equity was a low 0.08 at the end of FY25.
Shareholding Pattern: Who Owns This Coal PSU Stock?
The government, through the President of India, remains the majority owner of this coal PSU stock with 61.13% as of June 2026, down from 63.13% after the offer for sale. Foreign investors used the sale to buy in, lifting their holding to 10.37% from 8.38% in March 2026.
| Quarter | Promoter | FII | DII | Public |
|---|---|---|---|---|
| Jun 2025 | 63.13% | 8.16% | 22.65% | 6.05% |
| Sep 2025 | 63.13% | 7.96% | 22.80% | 6.11% |
| Dec 2025 | 63.13% | 8.22% | 22.54% | 6.11% |
| Mar 2026 | 63.13% | 8.38% | 22.75% | 5.73% |
| Jun 2026 | 61.13% | 10.37% | 22.20% | 6.29% |
Domestic institutions hold a steady 22.20%. Life Insurance Corporation of India is the largest of these at 10.24%, and a large flexi-cap mutual fund holds about 3.03%. The FII jump of roughly 2 percentage points in one quarter is the most notable shift and suggests foreign buyers see value in this coal PSU stock at current levels.
Is This Coal PSU Stock Still Worth Watching After a 132% Rally?
It depends on what you want from it. As a coal PSU stock, it is best understood as an income and value holding, not a fast-growth name. At around 8.5 times trailing earnings and a 6.1% dividend yield, the valuation is modest, and the balance sheet carries very little debt.
Growth is the missing piece for this coal PSU stock. Profit has been broadly flat to lower since the FY24 peak, and production fell in FY26. For the Coal India share price to rerate again, investors will want to see volumes recover after the monsoon and progress on the 1 billion tonne target.
Key Risks for This Coal PSU Stock
Energy transition: Rapid growth in solar and wind capacity could slow coal demand from power plants over the next decade, which is the core long-term concern for any coal PSU stock.
Pricing and e-auction premiums: Most coal is sold at notified prices under long-term supply contracts. Profits swing with e-auction premiums, which fall when global coal prices ease.
Rising costs: Employee costs of about Rs 11,023 crore a quarter are a large fixed burden, and wage revisions can squeeze margins quickly.
Government stake sales and policy: Further offers for sale can cap the Coal India share price in the short term, and pricing decisions may favour power consumers over minority shareholders.
Weak momentum: A 6-month return of minus 7.24% and a 1-year return of just 10.42% show that this coal PSU stock has lagged much of the market recently.
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Coal India Share: Analyst View
Analysts largely treat this coal PSU stock as a dividend and value holding. In March 2026, a domestic brokerage upgraded the stock to buy, citing a recovery in summer power demand, better e-auction realisations from high global energy prices and the 1 billion tonne production goal. It valued the company at about 6.3 times estimated FY28 EV to EBITDA.
For this coal PSU stock, the Q1 FY27 numbers, with flat profit and rising costs, keep near-term earnings expectations in check. The next few months of production data will decide whether the Coal India share price can move back towards its 52-week high.
Coal India Share Price Target
The domestic brokerage set a Coal India share price target of Rs 506, raised from Rs 405 earlier. From about Rs 432.45 today, that implies roughly 17% upside, before adding the dividend yield. Any such target is an estimate and can change with results and coal prices.
On the chart, the 52-week high of Rs 491.25 is the first resistance, and the offer for sale floor of Rs 412 and the 52-week low of Rs 369.60 are the key support zones. Any Coal India share price target should be read alongside these levels and upcoming quarterly results.
Conclusion
This coal PSU stock has delivered a 132.15% price return over five years, powered mainly by the profit surge of FY22 to FY24 and supported by some of the highest dividends in the market. With dividends included, the approximate five-year return is close to 200%.
The recent picture for this coal PSU stock is less exciting. The one-year return is 10.42%, the 6-month return is negative, and profit has stalled while the government trims its stake. For investors, the Coal India share price offers a low valuation and a rich yield, but future gains depend on volume recovery and cost control. Tracking monthly production and quarterly results is the best way to follow this coal PSU stock.
Disclaimer: Data and figures in this article are sourced from publicly available information and may or may not be accurate. Please verify all data independently before making any investment decision. Past returns do not guarantee future returns. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Which coal PSU stock rose 132% in 5 years?
Ans. Coal India (NSE: COALINDIA) is the coal PSU stock that gained approximately 132.15% over five years as of 10 September 2026. It ranked 48th among 101 large-cap and mid-cap NSE stocks in our screen.
Why did the Coal India share price rise over five years?
Ans. The main driver was a jump in profit from about Rs 12,702 crore in FY21 to a peak of Rs 37,369 crore in FY24, helped by high e-auction premiums after the 2022 energy shock. A rerating of state-run companies and steady dividends added support.
What is the dividend yield of Coal India?
Ans. The dividend yield is around 6.1% at the current price near Rs 432. The company paid Rs 26.50 per share for FY26 and has already declared a Rs 5.50 interim dividend for FY27.
What were Coal India Q1 FY27 results?
Ans. Revenue from operations rose 7.77% to Rs 46,255 crore and net profit edged up 0.71% to Rs 8,850 crore. Production fell 7% to 169.63 million tonnes, while offtake rose 4% to 197.86 million tonnes.
What is the 52-week high and low of Coal India?
Ans. The 52-week high is Rs 491.25 and the 52-week low is Rs 369.60 on NSE. The stock was trading near Rs 432.45 on 11 September 2026.
Did the government sell shares in Coal India in 2026?
Ans. Yes, the government sold up to 2% through an offer for sale in May 2026 at a floor price of Rs 412. Promoter holding fell to 61.13% from 63.13%, while FII holding rose to 10.37%.
What is the Coal India share price target?
Ans. A domestic brokerage has a Coal India share price target of Rs 506, which implies about 17% upside from around Rs 432.45. Targets are estimates, not assurances, and can change with results.
Is this coal PSU stock a good pick for income investors?
Ans. Its 6.1% yield, low debt and a PE near 8.5 make it attractive to income-focused investors. However, flat profits, the energy transition and possible stake sales are real risks, so consulting a SEBI-registered advisor is advisable.
