State-owned miner Coal India reported a larger-than-expected quarterly profits on April 27, driven by higher prices and a pickup in demand from customers ahead of peak summer season, as a gas supply shortfall linked to the US/Israeli war against Iran lifted coal consumption.

The company reported consolidated net profit of 108.39-billion rupees, or $1.15 billion, higher than analyst expectations of 92.24-billion rupees, as per data compiled by LSEG.

The company's consolidated net profit rose 11.2% to 108.39-billion Indian rupees in the quarter ended March 31, from 97.52-billion rupees a year earlier.

India relies on coal for three-fourths of its electricity generation. Higher power consumption during the winter, as well as a warm February and heatwave conditions in March, contributed to power usage in the quarter.

Consolidated revenue from operations rose nearly 6% to 464.90 billion rupees

Coal India's offtake, or sales to customers, rose for the first time in six months in March. Sales increased ahead of peak summer, amid a shortfall in gas supply due to the Iran war.

Analysts from Elara Capital said ahead of the results that increased production year-on-year would help sales and profit growth, despite a 1.4% decline in offtake compared to last year.

The company's average realisation, or average selling price per tonne, rose about 6% to 2 289.58 rupees, supporting revenue.

In a seperate story on April 27, Reuters reported that India ramped up coal and gas-fired power generation last week as peak demand hit a record 256.1 GW over last weekend amid a heatwave.

India's peak power demand rose to a record 256.1 GW on April 25, up from the previous day's record of 252.08 GW, federal grid data showed.

India operated about 9.6 GW of gas-fired capacity and ramped up coal-fired generation to around 187 GW.

NTPC, India's top thermal power producer, is procuring gas through the Indian Gas Exchange and operating plants as advised by Grid-India, an official said.

Forecasts of the strongest El Nino weather phenomenon in a decade are expected to drive hotter, drier weather across Asia.

India expects peak power demand to reach around 270 GW this year and is confident of meeting it.

India is likely to rely more on coal and has deferred maintenance of nearly 10 000 MW of coal-fired capacity to July.