Vintage Coffee & Beverages Brews Strong Q3 FY26 Performance Amidst Strategic Expansion

Vintage Coffee & Beverages Limited, a prominent player in the instant coffee and chicory sector, has reported a robust financial performance for the third quarter and nine months ended December 31, 2025 (Q3 FY26). The company, known for its export-led business model and focus on private label offerings, showcased significant growth in revenue and profitability, underscoring its operational efficiency and strategic market positioning. This quarter's results reflect a period of sustained growth and operational consolidation, driven by healthy demand across core export markets and improved capacity utilization.

For Q3 FY26, Vintage Coffee & Beverages Limited achieved a consolidated revenue of INR 150.52 crores, marking an impressive 71% year-on-year growth compared to INR 88.15 crores in Q3 FY25. The operating profit (EBITDA) surged by 83% to INR 27.64 crores from INR 15.08 crores in the corresponding quarter, with the EBITDA margin expanding to a healthy 19.1%. Profit after tax (PAT) also saw a substantial increase of 53%, reaching INR 19.11 crores against INR 12.45 crores in Q3 FY25. This strong performance was attributed to higher volumes, better realization, and an improved geographic and product mix. The company's cash flow from operating activities also turned positive in Q3, with expectations to achieve a breakeven cash flow position for the full FY26.

Strategic Shifts and Capacity Expansion Fueling Growth

The company's growth trajectory is not merely a result of market tailwinds but is deeply rooted in strategic shifts and aggressive capacity expansion. Management highlighted a deliberate pivot from bulk sales to a greater focus on consumer packs, including doy-packs, tins, and glass jars. This shift towards value-added products has significantly contributed to higher revenue and improved realizations. Currently, consumer packs account for 60% of sales, with a target to increase this to 65-70% going forward.

Vintage Coffee & Beverages Limited also achieved full utilization of its existing instant coffee capacity of 6,500 metric tons per annum in Q3 FY26, a significant operational milestone. To sustain this momentum, the company is undertaking substantial capacity expansions:

Financial Summary (INR Crores)

Nine Months Financial Summary (INR Crores)

1. Spray-Dried and Agglomerated Coffee Capacity: An additional 4,500 MTPA capacity is expected to be commissioned by the end of FY26, increasing the total installed capacity to 11,000 MTPA. This expansion is already supported by confirmed quantity commitments from customers, with full utilization anticipated in Q1 FY27. This will help spread fixed costs over a larger volume, positively impacting EBITDA.

2. Greenfield Freeze-Dried Coffee Project: The company is investing INR 500 crores in a greenfield freeze-dried coffee plant with an installed capacity of 5,500 MTPA. This project, part of an MOU with the Telangana government, is expected to commence commercial production by March 2027. Freeze-dried coffee is a super-premium product experiencing global growth of 8-10% year-on-year and offers realizations approximately 40% higher than conventional coffee. The plant is expected to operate at 65-70% capacity utilization in its first year (FY27-FY28). A second phase of 5,500 MTPA is planned for initiation by mid/end of FY27, which will bring the total capacity to 22,000 MTPA across both phases.

Market Dynamics and Future Outlook

The global instant coffee market continues to exhibit steady growth, driven by increasing consumption, convenience-led demand, and the rising acceptance of customized and private label products. The market is projected to reach USD 139.1 billion by 2028, with freeze-dried coffee being a particularly fast-growing segment. Vintage Coffee & Beverages Limited is strategically positioned to capitalize on these trends through its diversified export footprint, which includes Europe, Central America, Russia, CIS countries, Middle East, Africa, and Southeast Asia. The company is also exploring new geographies like the USA, New Zealand, and Australia.

To support its growth, the company plans to diversify its raw material sourcing, shifting from 80-85% domestic and 15-20% imported coffee beans to a 60% Indian and 40% imported mix by Q2 FY27, targeting African countries like Uganda and Indonesia for Robusta coffee. This move aims to optimize costs and ensure supply consistency.

Vintage Coffee & Beverages Limited's commitment to sustainable practices is also noteworthy. The company operates a large ETP plant with zero liquid discharge, implements rainwater harvesting, uses LPG gas for roasting, and utilizes spent coffee and rice husk as bio-fuels, actively exploring solar power for its operations. These initiatives underscore a responsible approach to growth.

In conclusion, Vintage Coffee & Beverages Limited's Q3 FY26 performance and strategic initiatives demonstrate a clear vision for long-term growth. The company's focus on value-added products, aggressive capacity expansion, and prudent capital allocation, coupled with its ability to manage market dynamics, positions it well to capture a larger share of the expanding global coffee market. The management's confidence in ramping up new capacities and securing orders reflects a strong execution capability and a promising outlook for the quarters and years ahead.