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Best Coal Stocks in India (2025)

In the financial year 2024–25, India’s coal production surpassed the 1 billion tn mark, reaching approximately 1,047.57 MT, a notable increase from around 997.83 MT in 2023–24. This milestone underscores the continued importance of coal in meeting the country’s growing energy and industrial demands.

Best Mining - Coal Sector Stocks in India (2025)

Mining - Coal Stock Screener

Mining - Coal Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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NameStock (1)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1D Return1D Return1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCEDividend YieldDiv YieldDebt to EquityDebt to EquityVolatility vs NiftyVolatility vs Nifty
1.Coal India LtdCOALINDIAMining - CoalMining - Coal2,31,256.382,31,256.38379.05379.056.546.541.011.01-1.43-1.43-3.94-3.94-9.02-9.022.312.3138.5338.5324.7124.717.067.060.090.091.591.59

Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Sub-sector: Mining - Coal | Market Cap: Sorted from Highest to Lowest

Recent Policy and Budget Updates in India’s Coal Sector

  1. Increased Coal Production Targets: The Indian government has set new targets to boost coal production. It aims to produce 1.3 billion tn of coal by FY 2027 and 1.5 billion tonnes by FY 2030. This plan will help meet the country’s rising energy demand.
  2. Budget Allocations for Coal Sector: In the FY 2025-26 Budget, the government raised the funding for the Ministry of Coal to ₹1,251.2 cr., compared to ₹141.2 cr. in the previous year. This increase shows the government’s strong support for expanding the coal sector.
  3. Underground Mining Reforms: To promote underground mining, the government cut the revenue share for underground coal mining to 2% and removed upfront fees for new projects. These reforms aim to attract more investment in underground mining.
  4. Revised Coal Allocation Policy: The government revised the SHAKTI Policy to improve coal allocation. The updated policy makes the coal distribution process more efficient and transparent, benefiting both producers and consumers.

How to Invest in Coal Stocks?

Investing in coal stocks in India using Tickertape is a straightforward process. Tickertape is a powerful stock analysis and screening tool that helps you make informed investment decisions. Here’s how you can use Tickertape to invest in coal stocks in India:

  1. Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
  2. Search for “Stocks related to coal mining in India”: Go to Tickertape Stock Screener and set the “Sub-sector: coal” filter
  3. Use Filters: You can apply over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio, or returns. You can create your own custom filter, in case your preferred parameters are not available. This can help you narrow down the top coal stocks in India.
  4. Analyse Stock Data: Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in-depth.
  5. Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
  6. Invest Through Your Broker: Once you’ve decided on a stock, you can place a buy order through your brokerage account linked to Tickertape.

You can stay updated with each of your favourite stocks’ alerts and announcements with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Overview of Top Coal Stocks in India

Coal India Ltd

Founded in 1975, Coal India Ltd (CIL) is India’s largest coal producer, supplying the majority of the country’s coal. State-owned and based in Kolkata, CIL plays a vital role in powering the nation, as well as supporting industries like steel and manufacturing.

What are Coal Stocks?

Coal stocks in India are shares of companies listed on the stock market that are involved in coal mining. These companies handle activities like coal mining, production, transportation, and distribution. They supply coal for various sectors, including power generation, steel manufacturing, cement production, and other industries.

Advantages of Investing in Coal Stocks in India

Importance in Energy Sector

Coal is a vital source of energy in India, providing about 73% of the country’s electricity. This high demand makes coal companies crucial for maintaining the country’s energy supply.

Government Support

The Indian government is working to increase coal production and improve infrastructure to meet the rising electricity demand. These supportive policies benefit the coal sector and strengthen coal stocks and exports.

Stable Demand

Coal remains essential for power generation and industries like steel and cement. As these sectors grow, the demand for coal stays steady, making coal stocks relatively stable.

Risks of Investing in Coal Stocks in India

Environmental Concerns

Coal contributes significantly to pollution and climate change. As environmental regulations tighten, coal companies may face higher costs and restrictions, which could negatively impact their stock performance.

Transition to Renewable Energy

The shift towards renewable energy sources like solar and wind could reduce coal’s long-term demand. This may affect the profitability and stock value of coal companies.

Declining Coal Reserves

Many coal mines are running out of usable reserves. Finding new reserves or replacing old ones can be expensive and difficult, posing a long-term risk for coal companies.

Public Sentiment

As investors focus more on Environmental, Social, and Governance (ESG) factors, coal companies may face pressure to adopt cleaner practices or risk losing investor support and facing divestment.

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Factors to Consider Before Investing in Coal Stocks

Government Policies

Government regulations play a big role in the coal sector. Changes in policies regarding coal production or emissions standards can affect the profitability of a coal company.

Environmental Impact

Coal mining and burning have significant environmental effects. Some companies are working to reduce their environmental footprint, which could help them avoid stricter regulations and public backlash in the future.

Global Commodity Prices

Coal prices are influenced by global demand and supply dynamics. Fluctuations in international markets can affect the profitability of Indian coal companies, especially those involved in exports or reliant on imported coal.

Technological Advancements

Some coal companies are innovating with new technologies to make their operations more efficient and reduce emissions. These improvements can help maintain profitability in a more environmentally-conscious world.

Conclusion

In conclusion, investing in coal stocks comes with both opportunities and risks. While coal continues to play a significant role in India's energy sector, factors like government policies, environmental concerns, and the shift toward renewable energy can affect the long-term outlook. Understanding a company’s financial health, market demand, and technological advancements is essential before making investment decisions.

To help you evaluate coal stocks and make informed decisions, use the Tickertape Stock Screener. With over 200 filters, it allows you to analyse key metrics like P/E ratio, revenue growth, debt levels, and more, ensuring you find the right stocks for your portfolio.

Frequently Asked Questions on Coal Stocks

  1. What are coal stocks in India?

    Coal stocks are shares of companies involved in the coal industry, such as mining, processing, and distribution. These companies supply coal for power generation, industrial use, and other sectors.

  2. What are the top coal companies in India?

    As of 17 November 2025, the top coal companies in India by market capitalisation are:
    1. Coal India Ltd

    Disclaimer: The above list is for educational purposes only and is not a recommendation.

  3. Is coal stock a good investment?

    Coal stocks may offer potential returns due to the steady demand for coal in power generation and industrial use. However, they also face risks like environmental regulations, the shift to renewable energy, and fluctuating coal prices.

    Disclaimer: This is not a recommendation. Please do your own research or consult your financial advisor before investing..

  4. Who is the biggest coal company in India?

    The biggest coal company in India is Coal India Ltd (COALINDIA), which is the largest producer of coal in the country and supplies a significant portion of India’s coal.

    Disclaimer: This is not a recommendation. Please do your own research or consult your financial advisor before investing..

  5. What is the future of coal stocks in India?

    The future of coal stocks in India is likely to remain important in the short to medium term, given coal’s essential role in power generation and industrial growth. However, the rise of renewable energy and stricter environmental regulations may reduce coal’s dominance in the long run.

    Disclaimer: This is not a recommendation. Please do your own research or consult your financial advisor before investing..

  6. How does India's coal import compare globally?

    In 2024, China imported 542.7 million metric tons of coal, more than double India’s 250.2 million tons. This highlights China’s leading position in global coal imports.

  7. What are the factors impacting coal shares' price?

    Coal shares’ price is influenced by factors such as demand from power and industrial sectors, government policies, fluctuations in global coal prices, stricter environmental regulations, and supply chain disruptions, all of which affect profitability and stock performance.