Coffee Day Enterprises Ltd: Q1 FY26 Financial Results.

~Sumon Mukhopadhyay.

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Company Overview:

Coffee Day Enterprises Ltd (Rs.38.80), the parent company of the iconic Café Coffee Day (CCD) chain, is a leading player in India’s coffee industry. 

Founded in 1996 by V.G. Siddhartha, Coffee Day Enterprises Ltd (CDEL) has not only built one of the country’s most recognizable café brands but also established itself as a vertically integrated coffee powerhouse.

The company operates an extensive network of cafés and vending machines, supported by its massive coffee plantations in Karnataka, spanning over 20,000 acres. 

These plantations, located in the lush coffee-growing regions of Chikmagalur, form the backbone of CDEL’s vertically integrated business model, ensuring a steady supply of high-quality coffee beans for its retail and vending operations. Photo: Business Today.

Financial Performance for Q1 FY26 (June 2025 Quarter):

Coffee Day Enterprises Ltd reported a consolidated net profit of Rs 28.18 crore for the quarter ended June 30, 2025, a significant improvement from a net loss of Rs 13.28 crore in the corresponding quarter of the previous fiscal year. The company’s revenue from operations rose by 3.55% year-on-year to Rs 269.32 crore, up from Rs 260.08 crore in the same period last year.

At the operational level, Coffee Day Global Ltd, the subsidiary managing the Café Coffee Day chain, recorded a narrower net loss of Rs 11 crore for Q1 FY26, compared to a loss of Rs 17 crore in the year-ago quarter. Revenue for the subsidiary grew by 6% to Rs 263 crore, reflecting steady growth in its core coffee business.

Operational Highlights:

🔹Café Network: The number of Café Coffee Day outlets decreased to 427 in the June 2025 quarter, down from 448 in the same period of the previous year. This reduction reflects the company’s ongoing efforts to optimize its store footprint amid financial restructuring.

🔹Vending Machine Expansion: CDEL’s vending machine business, a key growth driver, saw a 1.25% increase in operational units, reaching 55,189 machines in Q1 FY26, up from 54,505 in the corresponding quarter of the previous year. This growth underscores the company’s focus on expanding its presence in corporate workplaces and institutional settings.

🔹Average Sales Per Day (ASPD): The ASPD for Café Coffee Day was marginally lower at Rs 20,747 compared to Rs 20,772 in the year-ago quarter but showed a sequential improvement of 1.31% from Rs 20,477 in the March 2025 quarter.

Outlook:

Despite challenges such as debt restructuring and a reduced café footprint, Coffee Day Enterprises Ltd continues to demonstrate resilience through revenue growth and loss reduction. 

The expansion of its vending machine business and the strength of its Karnataka coffee plantations position CDEL for potential recovery in a competitive market. The company’s focus on operational efficiency and strategic asset management will be critical to sustaining this positive momentum.

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Note: This report is based on information from regulatory filings and news sources, including Business Standard and India Retailing.