Continental Coffee announced robust Q2 FY 2025-26 results, achieving a 52.7% increase in revenue, reaching INR 1,128.21 crores. EBITDA grew by 44.3% to INR 198.61 crores, while net profit increased by 36.4% to INR 100.86 crores. The domestic market continues to show strong growth, with branded business contributing significantly. Green coffee prices remain volatile, impacting market dynamics.
Financial Performance Overview
Continental Coffee reported strong financial results for Q2 FY 2025-26, demonstrating significant growth across key metrics. The group’s turnover reached INR 1,128.21 crores, a 52.7% increase compared to INR 738.74 crores in the corresponding quarter of the previous year. EBITDA stood at INR 198.61 crores, representing a growth of 44.3% from INR 137.62 crores. Profit before tax (PBT) grew by 45.5% to INR 127.09 crores, and net profit increased by 36.4% to INR 100.86 crores.
H1 FY26 Performance
The company also reported impressive results for the first half of FY 2025-26. Turnover reached INR 2,186.25 crores, a 44.5% increase from INR 1,513.37 crores in the corresponding period of the previous year. EBITDA grew by 33.7% to INR 360.05 crores, while PBT increased by 26.8% to INR 221.28 crores. The net profit for H1 stood at INR 173.31 crores, a 19.2% increase.
Domestic Market Growth
Continental Coffee’s domestic market continues to exhibit strong growth momentum, with gross sales of approximately INR 160 crores in the second quarter and about INR 310 crores for the first half. Of this, almost INR 210 crores was attributable to the branded business, reflecting continuous market share improvement across various channels and states.
Green Coffee Market Volatility
The company noted that green coffee prices continue to be volatile. After some softening in Q1, prices increased again in Q2. Conflicting news regarding the Vietnam crop has further contributed to price uncertainty. The company anticipates greater clarity on price trends in December, following the start of the crop flow.
Capacity Utilization and Expansion
The company’s blended capacity utilization for the quarter was between 65% and 70%, driven by strong volume growth. The existing capacity is almost fully utilized. Newer capacities are running at approximately 15% to 20%. There are no current plans to significantly increase capacity in the immediate future. The focus is on scaling the business at a consistent clip. It will consider new capacity investments when utilization rates reach around 80-85%.
Branded Business and Marketing Spend
The company is actively increasing its marketing spend, resulting in market share gains across different regions and channels. It is present across diverse channels, including mass media and select online channels. Growth in volume has been strong, in the range of 20% and volume growth contributes to the impressive growth.
Source: BSE
