Coal India — Q2 FY24

Coal India reported a solid H1 FY24 with production up 12% YoY and offtake up 9% YoY, driven by robust power demand (33% growth in October). Management reiterated the FY24 production target of 780 million tons and FY25 target of 851 million tons, supported by improving evacuation infrastructure and MDO ramp-up. E-auction premiums remain strong at 90% over notified price, though management sees no near-term FSA price hike for the power sector. The company is on track to achieve 1 billion tons by FY27, contingent on demand. Key risks include land acquisition delays (e.g., MCL's Basundhara stoppage) and railway rake shortages in SECL and MCL, which could constrain dispatches.