Coal India Strengthens Power Sector Coal Supply in H1 FY27
Coal India Limited (CIL), which supplies nearly 80% of its coal to India's power sector, demonstrated significant improvement in coal supply chain performance during the first half of fiscal year 2026-27. The company achieved total coal offtake of 384.2 Million Tonne (MT) in H1 FY27, representing a 7.6% increase (27.2 MT growth) compared to 357.0 MT in the corresponding period of FY 2025-26.
The momentum strengthened considerably in the second quarter, with Q2 offtake reaching 186.04 MT compared to 166.04 MT in Q2 FY26, representing 12.05% growth. September 2026 was particularly strong, with total coal supplies reaching 61.20 MT against 54.40 MT in September 2025, registering 12.5% growth.
Power sector remained the primary focus of CIL's distribution strategy, with 302.8 MT dispatched to power plants in H1 FY27, representing a 6.1% increase (17.4 MT growth) from 285.4 MT in H1 FY26. This accounted for nearly 79% of CIL's total H1 offtake. Q2 power sector supplies reached 148.20 MT against 133.50 MT in the previous year, showing 11% growth.
September 2026 power-sector supplies increased significantly to 48.90 MT from 44.20 MT in September 2025, a 10.63% increase (4.70 MT growth). The daily supply effort intensified throughout the month, with average daily power-sector despatch improving from approximately 1.51 MT/day in the first seven days to about 1.59 MT/day in the last seven days—a 5% improvement in daily throughput. The supply momentum continued into October, with daily power-sector despatch reaching 1.75 MT, 1.87 MT and 1.81 MT on October 1-3 respectively.
The improved coal supply directly supported electricity generation, with domestic coal-based generation increasing to 640.05 Billion Units (BU) in H1 FY27 from 582.5 BU in H1 FY26, representing a 9.9% increase (57.5 BU growth). CIL successfully liquidated 63 MT of pithead coal stocks during the first half, demonstrating effective inventory utilization alongside current production.
CIL's distribution architecture has evolved into a more responsive system combining Fuel Supply Agreements, linkage mechanisms, and market-based channels for short-term requirements. The company's investments in First Mile Connectivity include 46 CHP-silos providing 432 MT of mechanized close-loop evacuation capacity, with plans for additional CHP-Silos in upcoming greenfield mines. The improved performance reflects better synchronization of production and despatch, enhanced evacuation infrastructure, and effective utilization of accumulated pithead stocks, particularly important during the monsoon period and subsequent recovery.