Coal India’s stockpile is shrinking fast as coal dispatches outpace production

Coal India’s coal stocks fell nearly 49% in the six months to September as the state-run miner supplied more coal than it produced, with offtake rising 7.6% even as production declined 2.5% in the first half of FY27.

The company’s coal inventory stood at 66.58 million tonnes on September 30, down from 130.28 million tonnes on March 31, according to its investor presentation. This represents a reduction of 63.70 million tonnes over the six-month period.

Coal India produced 321 million tonnes of coal between April and September, compared with 329.14 million tonnes in the same period last year. However, offtake — the quantity of coal supplied or dispatched to customers — rose to 384.20 million tonnes from 357.05 million tonnes.


This means the company’s offtake exceeded its production by 63.20 million tonnes during the first half. Over the same period, its reported inventory declined by 63.70 million tonnes. The figures show that coal supplies increased despite lower production, while the stockpile available with the company shrank.

The presentation described the reduction in inventory from the March-end level as a “Decrease of Inventory with respect to 31st March 2026 – 63.70 MT (49%).” Coal India’s stockpile was also 38% lower than the 107.16 million tonnes recorded on September 30 last year.

Production trends varied across the company’s subsidiaries. Northern Coalfields Ltd’s output fell 16% year on year to 57.99 million tonnes, while South Eastern Coalfields Ltd produced 72.67 million tonnes, up from 68.27 million tonnes a year earlier. Western Coalfields Ltd’s production rose 9% to 27.03 million tonnes from 24.84 million tonnes.

Offtake trends also varied across subsidiaries. Central Coalfields Ltd recorded a 27% increase in offtake to 33.48 million tonnes, while Western Coalfields’ offtake rose 22% to 28.67 million tonnes. Northern Coalfields’ offtake declined 9% to 61.81 million tonnes from 68.03 million tonnes a year earlier.

Railways remained the main route for coal dispatches. Coal India’s presentation showed that 257 million tonnes of coal was moved through rail and merry-go-round (MGR) systems during the first half, compared with 123 million tonnes by road and 4 million tonnes through other modes.

The inventory decline accelerated during the September quarter. Coal India’s stockpile fell from 101.35 million tonnes at the end of June to 66.58 million tonnes at the end of September, a reduction of 34.77 million tonnes, or 34% of the June-end level. The presentation labels this decrease as 52%, but that percentage does not match the stated inventory figures.