COFFEEDAY - Coffee Day Enter

📊 NSE: COFFEEDAY 🏢 Hotels 📅 Last Updated: 12/13/2025 21:08

💰 Financial Performance

Revenue Growth by Segment

Consolidated net revenue grew 6% to INR 1,078 Cr in FY 2024-25. The Coffee business (96% of revenue) grew 7% YoY to INR 1,034 Cr, while the Hospitality business (4% of revenue) decreased 5% YoY to INR 44 Cr.

Geographic Revenue Split

100% of revenue is generated in India, with the café network spanning 152 cities and vending machines located in corporate workplaces and hotels nationwide.

Profitability Margins

Consolidated Loss Before Tax narrowed significantly to INR 12 Cr in FY 2024-25 from a loss of INR 369 Cr in FY 2023-24. Standalone PAT for FY 2025 was a loss of INR 241.59 Cr.

EBITDA Margin

Consolidated EBITDA margin improved to 20.7% (INR 223 Cr) in FY 2024-25, compared to a negative margin in FY 2023-24 (loss of INR 208 Cr).

Capital Expenditure

Not disclosed in available documents, though INR 2,100 Cr was previously utilized for debt reduction following the Mindtree stake sale.

Credit Rating & Borrowing

Credit rating is [ICRA]D; ISSUER NOT COOPERATING. Borrowing costs for rated term loans of INR 315 Cr were previously recorded at 9.90%.

⚙️ Operational Drivers

Raw Materials

Arabica and Robusta coffee beans represent the primary raw material costs for the 96% revenue-contributing coffee segment.

Import Sources

Brazil is identified as a major global source impacting supply and pricing; domestic sourcing is centered in Karnataka (Chikmagalur).

Capacity Expansion

Current capacity includes 435 cafes, 247 Value Express kiosks, and 54,100 vending machines. Planned expansion includes remodeling 425 Fresh & Ground outlets into retail stores.

Raw Material Costs

Coffee prices have hit record highs over the past few years due to weather disruptions in Brazil, impacting budgeting and planning for the coffee segment.

Manufacturing Efficiency

Average Sales Per Day (ASPD) was INR 15,926 with a Same Store Sales Growth (SSSG) of 9.55% as of the last reported full-year benchmark.

Logistics & Distribution

Distribution is managed through the Sical Logistics subsidiary, which provides integrated multimodal logistics solutions.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be achieved by remodeling 425 Fresh & Ground outlets into retail stores via a 51% JV with Impact HD Inc, expanding the vending machine network (currently 54,100 units), and leveraging tech-driven distribution such as app-powered ordering and subscription services to target Millennial and Gen Z consumers.

Products & Services

Brewed coffee, roasted coffee beans, vending machine services, and luxury boutique resort stays under 'The Serai' brand.

Brand Portfolio

Café Coffee Day (CCD), CCD Value Express, The Serai, Coffee Day Fresh & Ground.

New Products/Services

Expansion into Ready-to-Drink (RTD) formats, mix formats, and functional coffee products fortified with nutrients to appeal to health-conscious consumers.

Market Expansion

Targeting tier-2 and tier-3 cities for standardized hospitality options and expanding the 'Fresh & Ground' retail footprint.

Market Share & Ranking

Pioneer and leader in the chained café segment in India; Sical Logistics is a leading integrated logistics provider.

Strategic Alliances

Strategic 51% stake JV with Impact HD Inc to set up a chain of retail stores in India.

🌍 External Factors

Industry Trends

The industry is shifting toward specialty coffees, sustainable/ethical sourcing, and tech-driven personalized experiences via apps and data analytics.

Competitive Landscape

Facing intense competition from growing westernization, global players entering India, and the popularity of individual themed cafés.

Competitive Moat

Durable advantages include a vertically integrated coffee business (from plantation to cup) and a massive physical touchpoint network of 54,100 vending machines and 435 cafes.

Macro Economic Sensitivity

GDP growth and macroeconomic stability directly impact consumer spending power; sluggish growth reduces demand for discretionary coffee and hospitality services.

Consumer Behavior

Millennials and Gen Z prioritize convenience, speed, and innovation, driving demand for App-powered ordering and sustainable products.

Geopolitical Risks

Trade in the Asia Pacific region was previously affected by Covid-related disruptions; global coffee supply is sensitive to Brazilian weather patterns.

⚖️ Regulatory & Governance

Industry Regulations

Subject to food industry quality standards and regulations; failure to comply results in legal implications and loss of business.

Environmental Compliance

Focus on sustainable offerings as coffee is one of the highest greenhouse gas emitting foods; consumers increasingly demand eco-friendly credentials.

Taxation Policy Impact

Five-year tax holidays are available for hotels located around UNESCO World Heritage sites; government allows 100% FDI in hospitality through the automatic route.