India’s coal production witnessed a strong month-on-month recovery in December 2025, supported by improved mining activity and seasonal normalization. However, overall output growth for the calendar year remained subdued, reflecting structural pressures on legacy producers and a gradual shift in supply dynamics.
December 2025: Strong Sequential Improvement
Coal production in December 2025 stood at 101.4 million tonnes, marking a 4 percent increase year-on-year and a 9 percent rise over November, making it one of the stronger monthly performances of the year.
- Coal India Limited produced 75.7 million tonnes, recording 5 percent annual growth and a sharp 11 percent month-on-month increase, indicating operational ramp-up toward year-end.
- Singareni Collieries Company Limited reported production of 5.8 million tonnes, down 13 percent year-on-year, though output improved 8 percent sequentially.
- Captive and commercial coal miners together produced 20.0 million tonnes, registering 6 percent year-on-year growth and steady month-on-month expansion.
Coal dispatches during the month stood at 90.2 million tonnes, lower on a yearly basis but 5 percent higher than November, indicating improved offtake momentum toward the end of the year.
Calendar Year 2025: Marginal Expansion
For the full calendar year 2025, India’s total coal production reached 1,043.0 million tonnes, reflecting a marginal growth of 0.4 percent year-on-year.
Production trends across miner categories remained uneven:
- Coal India Limited’s annual output declined 2 percent to 766.9 million tonnes.
- Singareni Collieries’ production also fell 2 percent to 66.0 million tonnes.
- Captive and commercial miners continued to gain share, posting 12 percent growth with output of 210.2 million tonnes.
Total coal dispatches during CY2025 amounted to 1,016.1 million tonnes, up 0.4 percent year-on-year, broadly in line with production trends.
Sector-Wise Coal Offtake
The power sector remained the dominant consumer, accounting for 896.4 million tonnes of coal offtake during the year. Other consuming sectors included:
- Steel: 20.9 million tonnes
- Cement: 9.3 million tonnes
- Other industries: 89.5 million tonnes
The data underscores coal’s continued central role in India’s energy and industrial ecosystem, despite rising renewable capacity.
FY2025–26 YTD Performance
During April to December FY2025–26, cumulative coal production stood at 620.3 million tonnes, registering a 1 percent decline year-on-year, indicating that fiscal-year output remains under pressure despite the December rebound.
Outlook
The December recovery highlights improved operational momentum, but flat annual growth signals ongoing challenges for public sector miners. Increasing contribution from captive and commercial producers is becoming critical to meeting India’s rising power and industrial demand, especially as electricity consumption and steel production continue to expand.