Why is Coal India's first-quarter profit expected to decline despite higher coal sales and auction premiums?

Coal India's first-quarter profit is expected to decline marginally—by about 1% year-on-year—to 86.4 billion rupees ($895 million) because sharply higher input costs, particularly for explosives (up 26% from pre-war levels) and diesel (up about 50% since mid-March), wiped out gains from stronger demand and higher auction prices; the company stated it was absorbing these costs to avoid a 'cascading effect' on the economy, following the Middle East war's disruption of the Strait of Hormuz and resulting fuel shortages and price surges.

How did the Middle East war impact Coal India's operational costs and supply chain?

The Middle East war led to an effective closure of the Strait of Hormuz—a key energy and commodities supply route to India—causing shortages of diesel, natural gas, and cooking gas, and triggering sharp price increases; specifically, explosive costs rose 26% from pre-war levels by early April, and diesel prices surged about 50% since mid-March, directly inflating mining expenses for Coal India.

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