Coal India Signs MoU With HURL for Coal Gasification Urea Project in Sindri

Key numbers

Market Cap	₹2,61,761.88 CrLarge Cap
ROE Annual	26.1%Efficiency
PE TTM	8.39Sector PE 18.73
TTM Revenue	₹1,57,855.72 CrOperating

Key highlights

• MoU executed on September 29, 2026, for a urea production facility in Sindri, Jharkhand
• Initial phase focus includes technical, commercial, and implementation modality assessments
• Partnership aims to facilitate a Preliminary Feasibility Report to evaluate project viability
• Coal India reports a trailing twelve-month net profit of ₹31,203.02 crore
• Strategic alignment with the National Coal Gasification Mission for value-added coal utilization

What Is the Partnership?

Coal India Limited has entered into a non-binding Memorandum of Understanding with Hindustan Urvarak & Rasayan Limited as of September 29, 2026. The collaboration focuses on exploring the development of a coal gasification-based urea production facility situated in Sindri, Jharkhand. During the initial stage, both entities will concentrate on assessing the technical, commercial, and implementation modalities of the proposed project.

This preliminary work is intended to facilitate the preparation of a Preliminary Feasibility Report to determine the economic and operational viability of the venture, marking a shift toward downstream chemical production for the mining major.

Partner Profile

Hindustan Urvarak & Rasayan Limited is a strategic joint venture promoted by leading Indian public sector undertakings, including Coal India Limited, NTPC Limited, and Indian Oil Corporation Limited. HURL was established with the mandate to revitalize defunct fertilizer units to bolster national urea production. The company currently operates state-of-the-art fertilizer complexes in Gorakhpur, Barauni, and Sindri.

This partnership utilizes CIL's feedstock security and HURL's technical expertise in fertilizer manufacturing. By integrating coal gasification, HURL seeks to diversify its raw material base away from conventional natural gas, potentially reducing production costs and enhancing indigenous fertilizer availability.

What It Unlocks

• Provides a pathway for Coal India to diversify revenue into the high-value coal-to-chemicals sector
• Reduces reliance on imported natural gas by utilizing domestic coal for urea production
• Aligns with the National Coal Gasification Mission's target of 100 million tonnes by 2030
• Enhances agricultural supply chain stability through localized fertilizer manufacturing in Jharkhand
• Utilizes advanced gasification technology to lower the environmental impact compared to traditional combustion

Financial Context

Coal India maintains a strong financial position with a trailing twelve-month revenue of ₹1,57,855.72 crore and an annual net profit of ₹31,094.29 crore. The Maharatna company exhibits high capital efficiency, evidenced by an annual Return on Equity of 26.1%. Currently, the stock is trading at a TTM Price-to-Earnings ratio of 8.39x, significantly lower than the broader Metals & Mining sector average of 18.73x.

With a cash flow from operating activities reaching ₹43,214.6 crore annually, CIL possesses the liquidity required to fund long-term strategic initiatives and capital-intensive projects like the Sindri gasification facility.

Coal India · financial snapshot

Share price	₹424.75
Market capitalisation	₹2.62L Cr
Revenue (annual)	₹1.68L Cr
Net profit (annual)	₹31,094.29 Cr
P/E (TTM)	8.39×Sector 18.73×
Promoter holding	61.13%-2.00% QoQ
FII holding	10.37%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.