State-owned Coal India Ltd, the world’s largest coal producer, reported a decline in earnings for the December quarter (Q3 FY26), reflecting softer operating performance even as the company continued to reward shareholders with another interim dividend.

Coal India reported a consolidated net profit of around Rs 7,166 crore, which marked a 16% year-on-year decline from around Rs 8,500 crore reported in the same period last year. Revenue from operations for the quarter stood at Rs 34,924 crore, down nearly 5% year-on-year from Rs 36,858 crore a year earlier.

The decline in the top line reflects the moderation in coal uptake and price dynamics that have affected earnings momentum in recent quarters, continuing the trend seen earlier in FY26.

Despite the softer financial performance, the Maharatna PSU declared a third interim dividend of ₹5.50 per equity share for FY26, underscoring its continued focus on cash returns to investors.

The registration date has been set for February 18th, with payment scheduled by March 13th.

Coal India has maintained a consistent dividend payout strategy even during periods of pressure on earnings, including earlier interim payments during the fiscal year.

The company has experienced fluctuating profitability during the current fiscal year. In the September quarter (2Q26), Coal India reported a sharp fall in profit due to operational disruptions such as monsoon-related impacts, although it still announced a sizeable dividend payout.

Operating performance remained under pressure in the December quarter, although overheads remained broadly contained, reflecting a controlled escalation of costs alongside softer revenues.

Coal India continues to dominate India’s coal supply, which accounts for the bulk of domestic production, making its performance closely linked to energy demand, production volumes and price realization. Future performance will depend on power sector demand, volume growth and cost management as India balances energy security with a gradual transition to cleaner energy sources.

The miner’s shares settled the day at 419.20 rupees, down marginally by 0.96% from their previous close.