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Coal India shares up 4% after Q4 results; Analysts cite one key support factorCoal India lacks earnings catalysts given an oversupplied domestic coal markets, but dividend yield supports the stock price, brokerage firm HSBC said in its note. Jefferies also called Coal India's 6% dividend yield as "attractive."By Shloka Badkar   April 28, 2026, 9:40:38 AM IST (Updated)2 Min ReadShares of Coal India Ltd. gained over 4% on Tuesday, April 28, after it reported its fourth quarter earnings post-market hours on Monday.

Brokerages HSBC and Jefferies have mixed views on the stock, even as half of the 27 analysts covering the stock maintain their "buy" recommendation.

While HSBC has a "hold" rating with a price target of ₹440 per share, which implies a 3.5% downside from its previous closing price, Jefferies has a "buy" recommendation with a price target of ₹500 apiece, indicating an upside potential of 9.6% from its previous close.

HSBC

HSBC said Coal India's fourth quarter earnings beat expectations on higher other income. However, restatement makes the annual and sequential comparisons difficult.

Coal India's inventory increased 40 MT sequentially, even as the power plant inventory remained elevated. Elevated inventories put a cap on e-auction premiums, HSBC added.

Employee costs declined annually, which is a positive. However, Coal India sees a potential large cost increase ahead if diesel prices gain, HSBC said.

Coal India lacks earnings catalysts given an oversupplied domestic coal markets, but dividend yield supports the stock price, HSBC said in its note.

Jefferies

Jefferies said Coal India's March quarter cash earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8% from the previous year and was 14% above the brokerage's estimate. This was mainly led by better fuel supply agreement (FSA) ASP and e-auction volumes, it said.

An intense summer and weak rainfall are likely to boost power demand and thereby Coal India's volumes in FY27, Jefferies said.

After 12% earnings per share (EPS) correction over FY24-26, the brokerage expects Coal India's earnings trajectory to improve with 5% compound annual growth rate (CAGR) over FY26-28.

Jefferies said Coal India's current valuation of 9.3x FY27 estimated price-to-earnings and a 6% dividend yield are attractive.

Of the 27 analysts who have coverage on the stock, 14 have a 'buy' rating, eight have a 'hold' rating and five have a 'sell' rating.

Coal India shares were trading 4.4% up at ₹472.3 apiece at 9.40 am. The stock has gained 17.9% this year, so far.

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