CCL Products (India) Limited reported a 13.76% increase in turnover to INR 1,203.59 crore for the first quarter of FY27, driven by a robust 20% volume growth. EBITDA saw a significant rise of 21.84% to INR 196.69 crore. The company also emphasized progress in deleveraging its balance sheet, with net debt reducing to INR 963 crore.
CCL Products Reports Strong Q1 FY27 Performance
CCL Products (India) Limited has announced its financial results for the first quarter of the financial year 2026-27, showcasing substantial growth across key metrics. The company’s turnover for the quarter reached INR 1,203.59 crore, marking an increase of 13.76% compared to the corresponding quarter of the previous year. This growth was primarily fueled by an impressive 20% volume growth, demonstrating the company’s expanding market reach and product demand.
EBITDA and Profitability Surge
The strong volume growth translated into a significant uplift in profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 21.84% to INR 196.69 crore, up from INR 161.42 crore in the prior year. Profit Before Tax stood at INR 129.02 crore, a growth of 36.98%, while net profit surged by 61.31% to INR 116.87 crore. The company highlighted that its business model ensures EBITDA growth follows volume growth.
Balance Sheet Deleveraging Continues
A key focus for CCL Products in FY26 and continuing into FY27 has been the strengthening of its balance sheet through deleveraging. Net debt has further reduced to INR 963 crore as of June 30, 2026, a decrease of approximately INR 100 crore from the previous quarter. This marks a significant achievement, bringing the net debt below the INR 1,000 crore mark, driven by operational efficiencies and a cash flow-centric approach.
Volume Growth Guidance Maintained
Despite achieving 20% volume growth in the first quarter, the company has decided to maintain its full-year volume growth guidance at 15%. Management cited the continued volatility in green coffee prices and a cautious market sentiment from clients as reasons for not upgrading the guidance at this juncture. However, they expressed confidence in meeting the 15% target.
Domestic Business and Brand Expansion
The domestic business also showed strong performance, achieving a gross turnover of INR 180 crore, with the branded business contributing approximately INR 125 crore. The company is focusing on aggressive distribution in the South and expanding its presence in other markets. On the branded front, CCL Products anticipates a branded play of INR 550 crore to INR 600 crore in India for the fiscal year.
Capacity Utilization and Future Outlook
Current capacity utilization for the company stands between 65% to 70%, with higher utilization for freeze-dried products due to strong demand. CCL Products indicated that it is not building any significant capex for the next two years, focusing instead on optimizing existing capacities and potential strategic tie-ups. The company projects a continued 15% volume growth momentum for the next 3-4 years, supported by expanding its B2C vertical and exploring new categories.
B2C Segment Growth
The B2C segment is projected to grow at approximately 25% to 30% in the coming year. The international expansion of its B2C offerings, including brands like Percol, is also progressing well, with potential for further growth in markets beyond India. Management is optimistic about the performance of its snacks business, with a target to build revenues of a couple of crores this year and potentially higher volumes next year.
EBITDA Per Kg Stability
The company expects its EBITDA per kg to remain stable, hovering around INR 135 to INR 140. While acknowledging that freeze-dried products command higher margins, management stated that a blended EBITDA per kg is maintained through various strategies including product mix optimization and focus on small packs and premiumization. The company’s philosophy remains centered on sustainable, long-term growth.
Logistics and Treasury Update
Regarding logistics costs, management noted continued fluctuations but expressed confidence in managing these impacts. The company has built significant cash reserves, with operational cash flows of INR 858 crore generated last year. While future operational cash flows may not reach this exceptional level, the focus remains on debt reduction and judicious deployment of surplus treasury for potential acquisitions, particularly those that leverage its existing strengths in marketing or distribution.
Source: BSE
