After an estimated 21% decline in earnings per share between financial year 2024 and financial year 2026, the brokerage expects Coal India’s earnings trajectory to improve, projecting a compound annual growth rate of about 9% between financial year 2026 and financial year 2028.
The brokerage said a recovery in power demand, supported by expectations of an intense summer and weak rainfall, could boost Coal India’s volumes.
It also expects higher global coal prices to support e-auction realisations.Despite rising captive coal production in the country, Coal India has broadly maintained its roughly 60% share in India’s coal demand, Jefferies noted.
The brokerage added that the stock’s valuation remains attractive at about 9.3 times financial year 2027 estimated price-to-earnings, along with a dividend yield of around 6%. Jefferies has also raised its earnings per share estimates by 1% to 4%.
Of the 25 analysts that have coverage on Coal India, 12 of them have a ‘Buy’ rating, eight recommends ‘Hold’, while five others have a ‘Sell’ recommendation on the stock.
Shares of Coal India settled 1.33% higher on Tuesday at ₹443.45. The stock has gained nearly 11% so far in 2026.
