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Coal India supplies up 7.5% in June, stock flat. Power sector readthrough
Coal India's June coal supplies rose 7.5% y-o-y to 65.8 mt, power plant deliveries up 5.9%. Flat stock suggests seasonal uptick priced in. Monsoon impact on mining is the next watch.
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Coal India shares traded flat in the ₹438.50-441.95 range on the NSE on Tuesday after the state-run miner reported a 7.5% year-on-year increase in June coal supplies to 65.8 million tonnes.
Coal supplies to power plants rose 5.9% y-o-y to 51.44 million tonnes in June, compared with 48.57 million tonnes a year earlier. For the first quarter of FY27, total coal supplies stood at 197.7 million tonnes, up 3.5% from 191 million tonnes in the same period last fiscal.
The supply growth came during the peak summer season, when electricity demand typically rises. Power plants increase coal purchases ahead of the monsoon, which can disrupt mining and transport. The 3.5% Q1 growth was slower than the 7.5% June growth, showing that supply picked up in the final month of the quarter.
For the power sector, the data points to adequate coal availability. Thermal power plants, which rely on Coal India for the majority of their fuel, benefit from steady supply. India's power demand is expected to remain strong through the summer, with the IMD forecasting above-normal temperatures in July. That should keep coal consumption elevated, supporting Coal India's dispatch volumes.
The monsoon is the next variable to watch. Heavy rains can slow production at Coal India's mines and disrupt rail movement. The IMD has issued alerts for continued rain disruption across coal-bearing regions, as detailed in our monsoon progress update. Any supply disruption could tighten coal availability for power plants and push up spot prices.
Coal India's next monthly production data is due in early August. The stock's current range of ₹438-442 has held for several sessions, with volume declining. The NSE Nifty 50 index was flat on Tuesday, with Coal India's performance in line with the broader market. The stock has support at ₹430 and resistance at ₹450.