CCL Products delivered a strong Q3 FY26, marked by significant revenue and profit growth, driven by robust volume expansion and improved operational efficiency. The company successfully reduced its debt ahead of target and saw continued momentum in its domestic branded business. While green coffee prices remain a watch item, management expressed confidence in its cost-plus model and long-term growth strategy, including capacity expansion and new product development.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Q3 FY26 Turnover | ₹1.1K Cr | +38.0% YoY |
| Q3 FY26 EBITDA | ₹187.56 Cr | +47.0% YoY |
| Q3 FY26 PBT | ₹116.27 Cr | +62.0% YoY |
| Q3 FY26 Net Profit | ₹100.26 Cr | +59.0% YoY |
| 9M FY26 Turnover | ₹3.2K Cr | +42.0% YoY |
| 9M FY26 EBITDA | ₹547.6 Cr | +38.0% YoY |
Segment Breakdown
Share of Gross Sales
| Category | Headline | |
|---|---|---|
Debt | Gross ₹1,448 crores · Net ₹1,248 crores Cost 7.0% | |
Dividend | ₹2.75/share (interim) |
| Category | Target | Priority |
|---|---|---|
| Volume | Yearly Volume Growth→18-20% | High |
| Profitability | EBITDA per kg→INR135-140 | High |
| Profitability | FY26 EBITDA Growth→~25% | High |
| Sales | Domestic Branded Sales→INR430-440 crores | High |
| Sales | Total India Sales→INR650 crores | High |
| Debt | Net Debt→INR1,250 crores | High |
| Capacity | Overall Capacity Utilization→65-70% | High |
| Capacity | Long-term Capacity Utilization→85-90% | High |
| Cash Flow | Free Cash Flow (TTM)→INR700 crores | High |
| Cash Flow | Future Free Cash Flow→>INR700 crores | Medium |
| # | Metric | |
|---|---|---|
| 01 | Green Coffee Price Stability | |
| 02 | Next Year's Volume & EBITDA Guidance | |
| 03 | Small Pack Capacity Expansion Progress | |
| 04 | Domestic B2C Market Share in North, East, West | |
| 05 | Overall Capacity Utilization Progress |
| Severity | Risk |
|---|---|
medium | Green Coffee Price Volatility Prices are currently stable but could become volatile after pet holidays if farmers hold stocks, potentially leading to price increases. Management |
low | Underperformance of Plant-based Meat Category The plant-based meat category has not performed well, leading the company to exit to prevent further losses, though they are rethinking protein as a category. Management |
CCL Products reported a robust Q3 FY26, with turnover growing 38% YoY to INR1,053 crores. EBITDA increased by 47% to INR187.56 crores, and net profit saw a 59% jump to INR100.26 crores. For the nine-month period, turnover reached INR3,239.41 crores (up 42% YoY), with EBITDA at INR547.6 crores (up 38% YoY) and net profit at INR273.57 crores (up 31% YoY). This strong performance was attributed to significant volume momentum, with volume growth contributing approximately 20% to the Q3 revenue increase.
The company has made significant progress in deleveraging its balance sheet. Gross debt decreased to INR1,448 crores as of December 31, 2025, down from INR2,000 crores a year ago. Net debt stood at INR1,248 crores, effectively achieving the FY26 guidance of INR1,250 crores a quarter ahead of schedule. This reduction was driven by improved working capital management, including faster realizations and renegotiated credit periods with customers, alongside the softening of coffee prices. The average interest rate across the group is approximately 7%.
The domestic market continues its strong growth trajectory, with gross sales of approximately INR180 crores in Q3 and INR480 crores for the nine-month period. Branded sales contributed INR120 crores for the quarter and INR330 crores for nine months. Management expects branded sales to reach INR430-440 crores for FY26, with total India sales around INR650 crores. The company is expanding its distribution network, now directly reaching 140,000 outlets, and is aggressively growing its presence in North, East, and West markets, particularly through e-commerce platforms where it holds double-digit market share.
CCL Products has successfully maintained its EBITDA per kg at INR135-140 levels, and management confirmed that this metric is insulated from green coffee price fluctuations due to its cost-plus model. The outlook for green coffee prices is currently more stable than a year ago, with good crop news from Brazil. However, potential volatility and price increases are anticipated post-pet holidays, depending on farmers' holding patterns. The company's flexibility in sourcing from various regions (Brazil, Africa, Vietnam) helps mitigate supply risks.
The company's strategy is rooted in innovation, constantly offering new and diversified products. While the plant-based meat category was discontinued due to poor market performance, CCL is experimenting with traditional snacks under the 'Malgudi' brand and developing specialty coffees. Overall capacity utilization is currently between 65-70%. Management targets achieving 85-90% utilization within the next two years, at which point decisions regarding further capacity expansion will be made. Small pack capacity, particularly for sachets, is nearing full utilization, prompting plans for future expansion.