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StarX Research Paper · Working Paper in Finance

Three-Statement Financial Model Analysis of Coal India Limited

A rigorous three-statement financial model for Coal India Limited (NSE: COALINDIA) covering FY2019–FY2025. Income Statement, Balance Sheet, Cash Flow Statement, ratio analysis, and interrelationship verification — sourced from Screener.in, Coal India Annual Reports, and NSE India.

28 March 2026 28 min read Sarthak Shridhar Pande
NEW Research Paper PSU · Nifty 50
₹1,43,369 CrFY25 Revenue
32.8%FY25 EBITDA Margin
0.09xDebt-to-Equity
FY19–FY25Study Period
📄 Full Research Paper — PDF Three-Statement Financial Model · Coal India Limited · 10 Pages · Working Paper in Finance
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Abstract
Abstract

This paper constructs and analyses a Three-Statement Financial Model for Coal India Limited (NSE: COALINDIA), India's largest coal-mining public sector undertaking and a Nifty 50 constituent. Using historical financial data spanning FY2019–FY2025 sourced from Screener.in (consolidated) and cross-verified against Coal India's Annual Reports and NSE India disclosures, the three statements are examined individually and in their interrelationships. Revenue grew from ₹99,586 crore in FY2019 to ₹1,43,369 crore in FY2025 (six-year CAGR ~6.3%), while PAT reached ₹35,358 crore in FY2025. EBITDA margins averaged approximately 27% over the full period. The Balance Sheet reveals a near debt-free position (Debt-to-Equity 0.09x) with a growing equity base of ₹99,105 crore. Operating Cash Flow was ₹29,200 crore in FY2025 with a Cash Conversion Ratio of 0.83x.

Three-Statement ModelIncome StatementBalance SheetCash FlowCoal IndiaEBITDAFree Cash FlowRatio AnalysisWorking CapitalPSU
Section I
Income Statement Analysis (FY2019–FY2025)

Coal India's revenue from operations grew from ₹99,586 crore in FY2019 to ₹1,43,369 crore in FY2025 — a six-year CAGR of approximately 6.3%. Growth was non-linear: FY2021 saw a contraction of −6.3% due to COVID-19 disruption, before a sharp recovery of +21.9% in FY2022 and +26.0% in FY2023 driven by the global energy crisis. FY2025 saw a marginal −1.0% decline reflecting moderated e-auction premiums.

EBITDA margins improved from 20.7% (FY2021) to 33.1% (FY2024), averaging approximately 27% over the full period. PAT peaked at ₹37,402 crore in FY2024 before moderating to ₹35,358 crore in FY2025 (PAT margin: 24.7%).

6.3%
Revenue CAGR
FY2019–FY2025
~27%
Avg EBITDA Margin
Full Period
₹35,358 Cr
PAT FY2025
₹57.37
EPS FY2025
(per share)
₹26.50
DPS FY2025
Dividend per share
24.8%
Effective Tax Rate
FY2025
Revenue vs Net Profit (PAT) — FY2019 to FY2025
₹ Crore · Source: Screener.in (Consolidated) · Coal India Annual Report
EBITDA Margin % vs PAT Margin % — FY2019 to FY2025
Percentage · Revenue-based margins
Metric (₹ Cr)FY19FY20FY21FY22FY23FY24FY25
Revenue99,58696,08090,0261,09,7151,38,2521,44,7621,43,369
Revenue Growth−3.5%−6.3%+21.9%+26.0%+4.7%−1.0%
EBITDA25,00721,58118,62824,72144,23247,97147,064
EBITDA Margin %25.1%22.5%20.7%22.5%32.0%33.1%32.8%
EBIT21,55718,13014,91020,29237,39941,23637,919
PBT27,12724,07118,00923,61643,27548,81346,966
PAT17,46316,71412,70017,35831,76337,40235,358
PAT Margin %17.5%17.4%14.1%15.8%23.0%25.8%24.7%
EPS (₹)₹28.34₹27.12₹20.61₹28.17₹51.54₹60.69₹57.37
DPS (₹)₹13.10₹12.00₹16.00₹17.00₹24.25₹25.50₹26.50
Section II
Balance Sheet Analysis (FY2019–FY2025)

Coal India's Balance Sheet reveals four distinctive structural features. Shareholders' Equity has grown from ₹26,455 crore to ₹99,105 crore (CAGR ~25%) driven by strong PAT retention. Total Borrowings were only ₹9,146 crore in FY2025, a Debt-to-Equity ratio of just 0.09x — exceptional for a capital-intensive mining company.

The large 'Other Liabilities' line (₹1,50,735 crore in FY2025) predominantly represents employee benefit obligations — Gratuity, Leave Encashment, and Post-Retirement Medical Benefits — a structural economic liability understated by conventional debt ratios. Fixed Assets (Net Block + CWIP) have grown from ₹42,276 crore to ₹1,05,250 crore, reflecting sustained capital investment in mine development.

₹99,105 Cr
Shareholders' Equity
FY2025
0.09x
Debt-to-Equity
FY2025
₹34,215 Cr
Cash & Bank
FY2025
₹1,50,735 Cr
Other Liabilities
(Employee Obligations)
₹1,05,250 Cr
Net Block + CWIP
FY2025
₹25,070 Cr
Net Cash Position
(Cash − Debt)
Equity Base Growth vs Total Debt — FY2019 to FY2025
₹ Crore · Near debt-free despite heavy capex cycle
Fixed Asset Build-up: Net Block + CWIP — FY2019 to FY2025
₹ Crore · Sustained mine development & infrastructure investment
Line Item (₹ Cr)FY19FY20FY21FY22FY23FY24FY25
Shareholders' Equity26,45532,15736,51743,14360,84382,73099,105
Total Borrowings2,2106,4345,8843,5144,3316,5239,146
Other Liabilities1,04,3561,11,4301,18,6491,32,7801,56,2221,47,2171,50,735
Net Fixed Assets32,61836,78442,40546,67764,54775,66882,865
CWIP9,6588,32810,49012,89717,62218,96022,385
Cash & Bank31,12428,44917,31029,96539,92230,23534,215
Trade Receivables5,49914,40819,62311,36813,06013,25612,728
Inventory5,5846,6188,9477,0768,76410,79713,233
Total Assets1,33,0211,50,0201,61,0511,79,4362,21,3962,36,4702,58,985
Section III
Cash Flow Statement Analysis (FY2019–FY2025)

The Cash Flow Statement is the most analytically critical statement for Coal India. In FY2020, CFO was only ₹4,977 crore against PAT of ₹16,714 crore — a Cash Conversion Ratio of just 0.30x. This divergence was driven by a sharp build-up in trade receivables (₹14,408 crore) as state electricity board Discoms delayed payments. This critical earnings quality risk is entirely invisible in the Income Statement alone.

CFO recovered strongly to ₹41,107 crore in FY2022 (CCR: 2.37x) as receivables were collected, before normalising to ₹29,200 crore in FY2025 (CCR: 0.83x). Financing outflows are primarily dividend payments, consistently ₹7,000–16,000 crore annually.

FY2020 Earnings Quality Warning
PAT was ₹16,714 crore but CFO was only ₹4,977 crore (CCR: 0.30x). An investor relying solely on the Income Statement would have materially overestimated cash generation capacity. The Discom receivables risk is only visible through the Cash Flow Statement — the central argument for three-statement analysis.
Cash from Operations (CFO) vs Net Profit (PAT) — FY2019 to FY2025
₹ Crore · Divergence in FY2020 reveals Discom receivables risk
Cash Conversion Ratio (CFO / PAT) — FY2019 to FY2025
Ratio · 1.0x = full cash conversion of reported profits
Line Item (₹ Cr)FY19FY20FY21FY22FY23FY24FY25
CFO16,3564,97710,59241,10735,73418,10329,200
CFO / PAT (CCR)0.94x0.30x0.83x2.37x1.13x0.48x0.83x
CFI (Net)−7,896+1,033+182−25,715−23,465−4,486−10,076
CFF (Net)−10,885−4,791−8,453−13,441−13,704−13,899−13,309
Dividend Paid8,0737,3959,86010,47714,94515,71516,331
Net Cash Flow−2,426+1,219+2,321+1,951−1,436−282+5,815
Closing Cash & Bank31,12428,44917,31029,96539,92230,23534,215
Section IV
Financial Ratio Analysis

Key ratios computed from the three-statement model across profitability, solvency, efficiency, and liquidity dimensions. ROE appears elevated in early years due to a modest equity base; as equity has grown to ₹99,105 crore, ROE has moderated to 35.7% in FY2025 — still exceptionally high. The Interest Coverage Ratio has been consistently above 20x throughout, confirming finance costs represent no meaningful risk.

Return on Equity (ROE) % vs Return on Capital Employed (ROCE) % — FY2019 to FY2025
Percentage · Moderation reflects expanding equity base, not declining profitability
RatioFY19FY20FY21FY22FY23FY24FY25
A. Profitability
EBITDA Margin %25.1%22.5%20.7%22.5%32.0%33.1%32.8%
PAT Margin %17.5%17.4%14.1%15.8%23.0%25.8%24.7%
ROE %66.0%52.0%34.8%40.2%52.2%45.2%35.7%
ROCE %75.2%47.0%35.2%43.5%57.4%46.2%35.0%
B. Solvency
Debt-to-Equity (x)0.08x0.20x0.16x0.08x0.07x0.08x0.09x
Interest Coverage (x)81.8x36.0x23.2x37.5x54.7x50.3x42.9x
Net Cash (₹ Cr)28,91422,01511,42626,45235,59023,71225,070
C. Efficiency
Receivable Days20d55d80d38d34d33d32d
CFO / Revenue %16.4%5.2%11.8%37.5%25.9%12.5%20.4%
Section V
Six Key Insights from the Three-Statement Model
01
Cash Flow is the Critical Statement
FY2020 CFO of ₹4,977 crore vs PAT of ₹16,714 crore (CCR: 0.30x) reveals Discom receivables risk invisible in the Income Statement alone.
02
Employee Cost is the Dominant Lever
At 32–44% of revenue, employee cost is the primary margin driver. A 5% rise in FY2025 employee cost (~₹2,312 crore pre-tax) would reduce PAT by ~₹1,734 crore.
03
Fixed Assets are Accelerating
Net Block + CWIP grew from ₹42,276 crore to ₹1,05,250 crore. D&A growing from ₹3,450 crore to ₹9,145 crore compresses EBIT margins as the capex cycle matures.
04
Other Liabilities are a Hidden Burden
₹1,50,735 crore in Other Liabilities (FY2025), primarily employee benefit obligations, will require cash funding over decades — understated by conventional debt ratios.
05
Retained Earnings Compress Dividend Yield
As Reserves grew from ₹20,292 crore to ₹92,942 crore, dividend yield on expanding market cap has moderated. DPS grew from ₹13.10 to ₹26.50, payout ratio ~40–46%.
06
Three-Statement Integration Confirms Soundness
Interrelationship verification confirms retained earnings, net cash flow, and capex flows are internally consistent — only possible when all three statements are analysed together.
Section VI
Three-Statement Interrelationship Verification (FY2025)

The table below demonstrates the quantitative linkages between all three financial statements for FY2025, confirming internal consistency of the model.

Linkage / Verification CheckAmount (₹ Cr)Verified Against
PAT (Income Statement)35,358IS bottom line
Less: Dividends Paid (CFF)16,331Financing Activities
Estimated Retained Earnings Addition19,027IS → BS linkage
Actual Δ Reserves FY24→FY25 (BS)16,375Balance Sheet check
Depreciation (IS) added back in CFO9,145IS & CFS agree
Net Cash Flow (CFO + CFI + CFF)5,815Sum of three CFS sections
Change in Cash & Bank FY24→FY25 (BS)3,980Balance Sheet check
Capital Expenditure (abs CFI)10,076Investing Activity
Debt Change FY24→FY25 (BS)2,623BS confirms CFF

Note: The difference between estimated retained earnings (₹19,027 crore) and actual Δ Reserves (₹16,375 crore) is attributable to actuarial adjustments on employee benefit obligations recognised in Other Comprehensive Income (OCI) — a structural feature of Coal India's reporting, not a modelling discrepancy.

⚠ DISCLAIMER: This research paper has been prepared solely for educational and informational purposes. All data used are publicly available, sourced from Screener.in (consolidated), Coal India Annual Reports, and NSE India. This is the author's own original work and does not constitute financial advice, a buy/sell recommendation, or investment research under SEBI (Research Analysts) Regulations, 2014. The author is not a SEBI-registered Research Analyst. Readers must consult a qualified, SEBI-registered financial advisor before making any investment decision.