CCL Products reported robust Q3 FY ’26 results, achieving Group turnover of INR1,053 crores, marking a 38% growth year-over-year. EBITDA grew by 47% to INR187.56 crores, while net profit surged by 59% to INR100.26 crores. Management maintained stable guidance, emphasizing volume and EBITDA growth over short-term coffee price fluctuations. The company also highlighted strong momentum in its domestic branded retail sales and confirmed an interim dividend of INR2.75 per share.
CCL Products Q3 FY ’26 Performance Overview
CCL Products (India) Limited held its Q3 FY ’26 Earnings Conference Call on February 05, 2026, detailing strong performance across its consolidated operations for the third quarter and the nine-month period ending December 31, 2025.
Group Financial Highlights (Q3 FY ’26 vs. Q3 FY ’25)
- Turnover: Grew by 38%, reaching INR1,053 crores (vs. INR761 crores last year).
- EBITDA: Increased by 47% to INR187.56 crores (vs. INR127.22 crores).
- Net Profit: Increased by 59% to INR100.26 crores.
Nine-Month Performance (9M FY ’26 vs. 9M FY ’25)
The group demonstrated sustained acceleration over the nine-month period:
- Turnover Growth: 42% growth, reaching INR3,239.41 crores.
- EBITDA Growth: 38% growth, standing at INR547.6 crores.
- Net Profit Growth: 31% growth, totaling INR273.57 crores.
Key Business Segments and Operational Metrics
Domestic Branded Business
The domestic market continues to show strong momentum. Gross sales were approximately INR180 crores for the quarter, with branded sales contributing close to INR120 crores. For the 9-month period, branded sales were around INR330 crores. Management noted aggressive expansion, with distribution reaching 140,000 outlets and strong penetration in e-commerce platforms where the company ranks as a number 2 or 3 player in several instances.
Capacity Utilization and Volume Growth
Management addressed the relationship between price and volume:
- The 38% revenue growth in the quarter was driven by approximately 20% volume growth and 18% to 20% value growth derived from coffee prices.
- Overall capacity utilization currently sits around 65% to 70%. The company expects to reach 85% to 90% utilization levels within the next two years, after which capacity expansion decisions will be revisited.
Margin Stability and Pricing Model
The company strongly reiterated its cost-plus pricing model, assuring analysts that EBITDA per kilo remains stable and unimpacted by volatility in green coffee prices. EBITDA per kilo has improved to the INR135–INR140 levels, which management intends to maintain long-term, acknowledging minor quarterly variations due to product mix.
Balance Sheet and Cash Flow
Efforts to deleverage the balance sheet are proving successful. Gross debt decreased from INR2,000 crores a year ago to INR1,448 crores as of December 31, 2025. The net debt stands at INR1,248 crores, with an average interest rate of around 7%. Free cash flow generation is robust, projected to be slightly ahead of INR700 crores on a TTM basis for the current fiscal year, with minimal capital expenditure anticipated for FY ’27 and FY ’28.
Diversification and Future Outlook
The leadership team confirmed that diversification efforts are ongoing beyond core coffee operations. While the company previously experimented with plant-based meat, it has strategically paused that category due to poor market response. New experiments include traditional snacks under the Malgudi brand. Regarding 2-in-1 and 3-in-1 products, these remain popular in Southeast Asia, but growth in India and Europe requires a longer development timeline due to strong local milk supply chains.
Guidance Confirmation
While the guidance for the current year’s EBITDA growth (initially 15%-20% Y-o-Y) has already been revised up to approximately 25%, management stated they will wait one to two months post the Lunar New Year holidays to issue detailed guidance for the following fiscal year, contingent on stable coffee prices and contract evolution.
Source: BSE
