Coal India Limited (CIL), along with the Mineral Resources Development, Government of Madhya Pradesh (through the Directorate of Geology and Mining), and Madhya Pradesh State Mining Corporation Limited, has entered into a Non-Binding Memorandum of Understanding (MoU) on August 23, 2025, at Katni, Madhya Pradesh.
The objective of this collaboration is to explore and exploit critical minerals and other minerals of mutual interest in Madhya Pradesh, paving the way for improved utilisation of the state’s rich geological potential.
The MoU reflects a mutual intent to enhance cooperation and collaboration between a Maharatna company like CIL and state-level entities. By working together, the parties aim to contribute to the development of the mineral sector, which plays a crucial role in both regional growth and the national economy. This move highlights the increasing importance of critical minerals for industrial and strategic purposes in India.
Coal India Ltd reported a sharp 20.19% year-on-year (YoY) decline in net profit for the first quarter of FY26, with profit falling to ₹8,734.17 crore from ₹10,943.55 crore in the same period last year. The company also saw a drop in revenue, which slipped by 4.43% to ₹35,842 crore in Q1 FY26 compared to ₹37,503 crore in Q1 FY25.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at ₹13,165 crore in the June 2025 quarter, down 15% from ₹15,478 crore in Q1 FY25. The company also recorded a 3% drop in coal production, generating 183.32 million tonnes (MT) in Q1 FY26 versus 189.28 MT in the same quarter last year.
As of August 25, 2025, at AM, Coal India share price is trading at ₹379.75 per share, reflecting a surge of 1.42% from the previous closing price.
The MoU between Coal India Limited and the Madhya Pradesh Government entities represents a significant step toward advancing mineral resource exploration and development. Although non-binding, the agreement signals a strong intent to align efforts for tapping into critical and other minerals, boosting both state and national growth prospects.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 25, 2025, 2:06 PM IST
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