Coal India's supplies to power plants climb 5.9% in June on peak summer demand

New Delhi: Coal India Limited (CIL) increased coal supplies to the country's power plants by 5.9 percent year-on-year to 51.44 million tonnes (MT) in June 2026, as electricity demand climbed during the peak summer season, the company said in a statement on Thursday.

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Supplies to the power sector stood at 48.57 MT in June of the previous year. For the first quarter (Q1) of FY27, CIL supplied 154.75 MT of coal to the power sector, up 1.8 percent from 151.93 MT in the corresponding quarter of FY26 — a pace well below June's monthly growth.

Overall supplies up 7.5% in June; non-regulated sector grows fastest

CIL's total coal supplies rose 7.5 percent to 65.8 MT in June, from 61.2 MT a year earlier. For the full first quarter, overall supplies reached 197.7 MT, an increase of 3.5 percent over the 191 MT dispatched in Q1 FY26.

Supplies to the non-regulated sector grew faster than to power, rising 14.8 percent to 14.50 MT in June from 12.63 MT a year earlier. Over the quarter, non-regulated supplies increased 10 percent to 43.10 MT, compared with 39.02 MT in the same period of FY26.

Pithead stock drawdown described as a deliberate strategy

The higher supplies allowed CIL to liquidate 28.3 MT of pithead coal stock during Q1 FY27. The company characterised the drawdown as intentional. "The reduction in pithead stock during the quarter was a conscious business decision aimed at improving inventory turnover, reducing carrying costs, and enhancing supply chain efficiency," CIL said in its statement.

Framing it as a broader shift in operating approach, the company said: "This forms part of Coal India's consciously adopted strategy of demand-synchronized mining and inventory optimization, marking a shift from a purely volume-driven approach to a value-driven and demand-responsive operating model." CIL added that the aim was to meet consumer requirements while systematically drawing down excess inventory built up over previous years.

First-mile connectivity supplies up 23%

CIL reported 23 percent growth in coal supplies through its first-mile connectivity (FMC) infrastructure during Q1 FY27, with FMC volumes reaching 66.76 MT. The company said this reflected continued progress in strengthening evacuation infrastructure and improving operational efficiency.

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The company said it was progressing towards its production target of 815 MT and supply target of 850 MT for FY27.