CDEL coffee business revenue rises 7% as Q2 EBITDA gains 9%

Coffee Day Enterprises Limited, or CDEL, reported Rs 292.48 crore of coffee and related business revenue in the quarter ended 30 September 2026, up 7% from Rs 274.18 crore a year earlier, while segment EBITDA rose 9% to Rs 40.90 crore. Coffee supplied Rs 18.30 crore of the group’s Rs 18.86 crore year-on-year segment-revenue increase.

What did CDEL’s coffee business deliver in Q2?

CDEL’s coffee and related business generated Rs 292.48 crore in segment revenue and Rs 40.90 crore in earnings before interest expense, depreciation and amortisation expense and tax, or EBITDA, in the quarter ended 30 September 2026. The coffee segment accounted for Rs 292.48 crore of CDEL’s Rs 298.56 crore total segment revenue, compared with Rs 6.05 crore from hospitality services and Rs 0.03 crore from others.

Coffee revenue rose by Rs 18.30 crore from Rs 274.18 crore in the quarter ended 30 September 2025, while EBITDA increased by Rs 3.26 crore from Rs 37.64 crore. CDEL defines segment result as EBITDA and includes the share of profit or loss from equity-accounted investees within the respective business segments, making this the group’s reported segment measure.

CDEL reported Rs 298.18 crore of revenue from operations for the September 2026 quarter after eliminating Rs 0.39 crore of inter-segment revenue from the Rs 298.56 crore segment-revenue total. The Rs 292.48 crore coffee figure is therefore a segment disclosure before this group-level elimination.

How did CDEL’s coffee business compare with the previous quarter?

CDEL’s coffee revenue rose by Rs 8.41 crore from Rs 284.07 crore in the quarter ended 30 June 2026, but coffee EBITDA fell by Rs 10.29 crore from Rs 51.19 crore. The sequential comparison differs from the year-on-year result because September-quarter revenue was higher on both measures of comparison, while EBITDA was lower than in June 2026.

For the half year ended 30 September 2026, coffee revenue was Rs 576.55 crore, up Rs 38.99 crore from Rs 537.56 crore in the half year ended 30 September 2025. Coffee EBITDA for the latest half year was Rs 92.09 crore, compared with Rs 72.91 crore in the prior-year half year, an increase of Rs 19.18 crore.

CDEL did not provide a segment cost bridge or an explanation for the Rs 10.29 crore sequential EBITDA decline on the disclosed segment page. Its consolidated results show employee benefit expense of Rs 46.18 crore, material costs of Rs 144.42 crore and other expenses of Rs 73.69 crore for the September 2026 quarter, but do not allocate those costs to coffee in the supplied disclosure.

Which CDEL segments drove the revenue increase?

CDEL’s coffee and related business supplied Rs 18.30 crore of the Rs 18.86 crore increase in total segment revenue between the September 2025 and September 2026 quarters. Hospitality services added Rs 0.56 crore, rising to Rs 6.05 crore from Rs 5.49 crore, while the others segment remained at Rs 0.03 crore.

Hospitality EBITDA increased to Rs 1.95 crore in the September 2026 quarter from Rs 0.23 crore a year earlier, although it was below Rs 2.10 crore in the June 2026 quarter. Coffee represented about 98% of CDEL’s Rs 298.56 crore September-quarter segment revenue, based on the segment figures reported under Indian Accounting Standard 108.

The others segment reported EBITDA of Rs 48.58 crore in the September 2026 quarter, versus Rs 13.25 crore a year earlier and Rs 40.90 crore for coffee. CDEL identifies the category only as “Others” in its segment disclosure and does not specify on the supplied page which operations or items produced that result.

Why does CDEL’s consolidated profit differ from coffee EBITDA?

CDEL reported consolidated profit of Rs 35.91 crore for the quarter ended 30 September 2026, compared with a loss of Rs 15.70 crore a year earlier, but that figure is not a direct measure of coffee operations. The reconciliation from total segment result includes Rs 28.76 crore of depreciation and amortisation, Rs 18.60 crore of finance costs and Rs 8.15 crore of tax.

The consolidated statement recorded Rs 47.44 crore of exceptional items in the September 2026 quarter, compared with no exceptional-item amount shown in the June 2026 and September 2025 quarterly columns. CDEL separately disclosed that it paid Rs 25 crore to settle dues with Kemfin Service Private Limited on 30 September 2026 and recognised an exceptional gain of Rs 5.78 crore; the filing does not break down the full Rs 47.44 crore amount.

CDEL’s total segment EBITDA was Rs 91.43 crore in the September 2026 quarter, including Rs 40.90 crore from coffee, Rs 1.95 crore from hospitality and Rs 48.58 crore from others. The reported Rs 35.91 crore profit also reflects exceptional items and the share of profit or loss from equity-accounted investees, which was a loss of Rs 0.45 crore in the quarter.

What reporting qualifications should CDEL readers consider?

CDEL said its statutory auditors expressed a disclaimer of conclusion on the unaudited consolidated results for the quarter and half year ended 30 September 2026. The filing says the auditors had not received limited-reviewed financial statements or management-compiled accounts for three joint ventures, while certain other subsidiary and associate figures were based on management-certified results or reports from other auditors.

CDEL also disclosed that Rs 3,357.13 crore was due as at 30 September 2026 from Mysore Amalgamated Coffee Estates Limited, or MACEL, to its subsidiaries and a joint venture, with no provision made against that receivable. CDEL said its subsidiaries initiated arbitration proceedings and filed a claim statement against MACEL, while it was evaluating its course of action after a 5 November 2026 Securities Appellate Tribunal order.

The group prepared its September 2026 results on a going-concern basis, citing net worth of Rs 3,196.89 crore at 30 September 2026. Cash and cash equivalents were Rs 24.51 crore at that date, down from Rs 25.60 crore at 31 March 2026, while current borrowings declined to Rs 344.62 crore from Rs 373.72 crore.

Conclusion

CDEL’s September 2026 disclosure shows that coffee and related business was the main contributor to its year-on-year segment-revenue increase, adding Rs 18.30 crore of the Rs 18.86 crore total gain. Coffee EBITDA also rose by Rs 3.26 crore from the prior-year quarter, although its Rs 40.90 crore September result was below the Rs 51.19 crore reported in June 2026.

The next quarterly results will indicate whether CDEL can maintain coffee revenue growth and address the sequential EBITDA movement. Investors can also watch the disclosed arbitration concerning the Rs 3,357.13 crore MACEL receivable and any further explanation of the Rs 47.44 crore exceptional-items amount recorded in the September 2026 quarter.