Coal India Ltd (CIL) saw its coal output drop by 3.7% in the first eight months (April-November) of the financial year 2026 (FY26), marking the first decrease for the corresponding period in six years, according to provisional data released by the company.

CIL accounts for about 80% of India's coal production. It produced 453.5 million tonnes (Mt) of coal during the eight months, compared to 471 Mt in the same period a year ago.

The company attributed the shortfall in coal output to land acquisition challenges and adverse weather conditions during the period. A senior official noted that mines located in Jharkhand and Chhattisgarh were severely affected with sporadic rains continuing till October.

Coal India's production during the April-November period had risen every year over the past six years, increasing from 334.5 million tonnes in 2020 to 353.4 Mt in 2021, 412.6 Mt in 2022, 460 Mt in 2023 and 471 Mt in 2024, before reversing course this year.

Lower coal demand from the India's power sector was also a key factor weighing on production, experts said. Coal dispatch to the power sector declined 3.27% during the eight months, falling to 519 Mt from 537 Mt a year prior. Coal offtake from CIL during the same period also dropped 2% on the year.

The decline in overall output was driven by sharp contractions across some key subsidiaries of CIL. Bharat Coking Coal Ltd. reported a 16.3% decline in production during April-November, while Central Coalfields Ltd. recorded a 14.1% drop. Western Coalfields Ltd. saw output fall 11.7%, and Eastern Coalfields Ltd. also posted a contraction.