Shares of Coal India Limited (CIL), the country's largest coal producer, soared more than 6% (reaching up to around Rs 426-429 levels) on Friday, marking the biggest single-day gain in over two years and hitting a fresh 52-week high. The rally came after the state-owned miner announced a significant policy change allowing direct participation of coal consumers from neighboring countries—Bangladesh, Bhutan, and Nepal—in its Single Window Mode Agnostic (SWMA) e-auctions, effective January 1, 2026.

Previously, buyers from these countries could only access CIL's coal through domestic Indian traders. The new framework, approved by the company's board, enables foreign consumers to register once, bid digitally alongside domestic buyers, make advance electronic payments compliant with Foreign Exchange Management Act (FEMA) rules, and route exports through notified logistics channels. 

Buyers from Nepal can pay in Indian Rupees or US Dollars, while those from Bangladesh and Bhutan must use US Dollars (valued in INR). This move is seen as a step toward greater transparency, efficiency, better utilization of surplus coal resources, and enhanced integration with regional markets, while still prioritizing domestic needs.

In a broader strategic update, CIL continues to advance plans for listing its subsidiaries on stock exchanges. The board has granted in-principle approval for the listing of two major coal-producing arms—Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL)—which together contribute over 50% of the company's total production. This follows a directive from the Ministry of Coal in December 2025 to progress these listings in the upcoming financial year (FY27). 

CIL has already initiated the process for two other subsidiaries, Bharat Coking Coal Limited (BCCL) and Central Mine Planning & Design Institute Limited (CMPDIL), with expectations of four subsidiaries potentially listed by FY27. On the operational front, CIL reported mixed performance for December 2025. Production rose 4.6% year-on-year to 75.7 million tonnes (MT) from 72.4 MT, driven by improved output in certain subsidiaries.

However, offtake declined 5.2% to 64.9 MT from 68.5 MT. For the April-December period of FY26 (nine months), cumulative production stood at 529.2 MT, down 2.6% from the previous year, representing about 60% of the full-year target. Offtake also fell around 2-6% in the period, highlighting the need for stronger demand-side measures. The new foreign participation policy could help address off-take challenges by opening additional export avenues.

The stock's strong performance underscores investor optimism about CIL's market expansion and structural reforms. With production ramp-up efforts and subsidiary listings on the horizon, Coal India remains central to India's energy security and coal supply chain, even as the sector navigates evolving demand dynamics.