Coffee Day Enterprises Limited books Rs 5.783 crore Kemfin gain

Coffee Day Enterprises Limited paid Rs 25 crore on 30 September 2026 to settle dues owed to Kemfin Service Private Limited and recorded a Rs 5.783 crore exceptional gain. The interest dues up to the settlement date were waived, and the gain helped turn a Rs 1.188 crore pre-exceptional quarterly loss into a reported Rs 4.595 crore profit.

What did CDEL pay to settle Kemfin dues?

CDEL paid Rs 25 crore on 30 September 2026 under its settlement agreement with Kemfin Service Private Limited. The company said interest dues outstanding until that date were waived under the agreement, while the resulting Rs 5.783 crore gain was recognised as an exceptional item in the standalone results for the quarter ended 30 September 2026.

The filing does not disclose Kemfin's original principal outstanding, the amount of interest waived or the carrying value of the liability before settlement. It therefore does not permit a calculation of the separate principal and interest components behind the Rs 5.783 crore accounting gain. CDEL reported the transaction as part of the Rs 5.783 crore exceptional items recognised in the September 2026 quarter.

CDEL disclosed total borrowings of Rs 65.9 crore as at 30 September 2026, including certain covenant breaches that permit lenders to recall loans. Its standalone balance sheet showed current borrowings of Rs 47.882 crore at 30 September 2026, down from Rs 76.982 crore at 31 March 2026. The company also reported Rs 25 crore of borrowing repayments in the six months ended 30 September 2026, but did not allocate that cash-flow line specifically to Kemfin.

How did the Kemfin settlement affect CDEL's quarterly result?

CDEL reported a Rs 4.595 crore standalone profit after tax for the quarter ended 30 September 2026, against a Rs 6.007 crore loss a year earlier. The Rs 5.783 crore Kemfin gain exceeded the Rs 1.188 crore loss before exceptional items and tax, meaning the reported profit was dependent on the settlement gain.

Revenue from operations rose to Rs 5.289 crore in the September 2026 quarter from Rs 4.886 crore in the September 2025 quarter. Total expenses declined to Rs 6.966 crore from Rs 10.913 crore, as finance costs fell to Rs 1.968 crore from Rs 3.637 crore and other expenses fell to Rs 2.829 crore from Rs 4.773 crore. Despite those changes, CDEL remained loss-making before exceptional items.

For the half year ended 30 September 2026, CDEL recorded profit after tax of Rs 11.593 crore, compared with Rs 7.119 crore in the corresponding 2025 period. Exceptional items totalled Rs 14.763 crore, including an Rs 8.98 crore gain in the June 2026 quarter after Coffee Day Global Limited shares were transferred back to CDEL following repayment of related subsidiary borrowings.

The six-month loss before exceptional items and tax narrowed to Rs 3.17 crore from Rs 9.281 crore a year earlier. That comparison indicates a smaller underlying reported loss before exceptional items, but the reported half-year profit still reflected the Rs 14.763 crore of separately disclosed gains.

What other lender settlements has CDEL completed?

CDEL said it had fully settled loans involving Credit Opportunities India Pte Ltd and India Special Situations Scheme-I, as well as Axis Bank, before the Kemfin agreement. Under the first arrangement, CDEL paid Rs 28.9 crore on 9 April 2025 and Rs 82.321 crore on 10 July 2025, while the lender realised Rs 55 crore from the sale of invoked shares originally pledged by CDEL.

CDEL recognised a Rs 78.55 crore gain on settlement of that loan liability and a Rs 55 crore adjustment arising from the sale of invoked shares in the year ended 31 March 2026. However, the arrangement includes a contingent Rs 50 crore third tranche payable on 30 June 2028 if a specified share-price or earnings before interest, tax, depreciation and amortisation, or EBITDA, milestone is achieved. CDEL has disclosed that amount as a contingent payment because the obligation arises only if those milestones occur.

Axis Bank issued a settlement letter on 29 December 2025 for Rs 70 crore of outstanding dues, requiring an initial Rs 35 crore payment by 31 December 2025. CDEL paid Rs 35 crore on 29 December 2025, recognised a Rs 35.429 crore exceptional gain in the year ended 31 March 2026, and paid the remaining Rs 35 crore on 4 February 2026 to settle the loan in full.

What do CDEL's cash flows and audit disclosures show?

CDEL reported Rs 45.573 crore of cash generated from operations in the half year ended 30 September 2026, compared with Rs 100.181 crore in the previous-year period. The latest period included a Rs 44.252 crore inflow from current and non-current loans, compared with Rs 110.79 crore in the prior-year period, affecting the comparison between the two operating cash-flow figures.

Investing activities used Rs 13.954 crore in the latest half year, principally because CDEL invested Rs 14.582 crore in fixed deposits. In the prior-year period, investing activities generated Rs 16.392 crore, including Rs 16.4 crore of proceeds from investments. Financing activities used Rs 25.379 crore in the latest period, compared with Rs 118.538 crore a year earlier.

Cash and cash equivalents closed at Rs 14.221 crore on 30 September 2026, compared with Rs 7.981 crore at 31 March 2026 and Rs 6.869 crore on 30 September 2025. The statutory auditors issued a disclaimer of conclusion on the standalone limited review, citing insufficient audit evidence on the recoverability of Rs 1,400.1 crore of interest-free advances to subsidiaries and no balance confirmation from one lender for Rs 47.88 crore.

Management prepared the results on a going-concern basis, citing positive net worth of Rs 1,803.4 crore at 30 September 2026. The auditors said covenant non-compliance, repayment defaults and evidence limitations could have consequential implications for CDEL's ability to continue as a going concern, and they did not comment on whether that accounting basis was appropriate.

Conclusion

CDEL's Rs 25 crore Kemfin payment removed the specified lender dues and produced a Rs 5.783 crore exceptional gain in the September 2026 quarter. The gain was larger than the Rs 1.188 crore loss before exceptional items and tax, while the half-year profit of Rs 11.593 crore also included an Rs 8.98 crore gain related to the return of Coffee Day Global Limited shares.

The next disclosed financial milestone is the contingent Rs 50 crore payment due on 30 June 2028 under the Credit Opportunities India Pte Ltd and India Special Situations Scheme-I settlement, subject to stated share-price or EBITDA milestones. CDEL is also evaluating its next steps after the Securities Appellate Tribunal set aside the Securities and Exchange Board of India order dated 24 January 2023 on 5 November 2026, while arbitration proceedings against Mysore Amalgamated Coffee Estates Limited continue.