Shares of Central Mine Planning & Design Institute (CMPDI), a subsidiary of Coal India Limited, fell around 4% in Wednesday’s trading session after the company reported a sharp 32% year-on-year decline in net profit for the fourth quarter.
The stock dropped to nearly ₹176–₹177 levels on the NSE following the earnings announcement, reflecting negative investor sentiment after the weak profitability numbers.
CMPDI reported a net profit of about ₹187–₹188 crore for Q4 FY26, compared to around ₹277 crore in the same period last year. Despite the decline in profit, the company’s revenue from operations rose approximately 11% year-on-year to about ₹827 crore during the quarter.
The drop in profitability was primarily driven by a sharp rise in expenses, which surged nearly 42% to around ₹589 crore. Higher employee costs, operational expenses, and one-time charges significantly impacted margins, even as topline growth remained strong.
Operating margins also came under pressure, declining substantially compared to the previous year, indicating cost pressures within the business. Analysts noted that while revenue growth remains steady, sustained margin compression could weigh on future earnings performance.
Following the results, the company’s board recommended a final dividend of ₹1.06 per share for FY26, subject to shareholder approval, offering some support to investor sentiment.
CMPDI, which recently debuted on the stock exchanges, remains closely tied to Coal India’s operations, with a significant portion of its revenue dependent on its parent company. Market participants are expected to monitor cost trends and margin recovery in the coming quarters as key indicators of the company’s financial health.