Vintage Coffee And Beverages Limited — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

Vintage Coffee & Beverages Limited delivered a strong Q3 FY26, with consolidated revenue growing 71% YoY to INR 1,505 million and EBITDA increasing 79% YoY to INR 287 million. The company achieved full utilization of its existing capacity and is on track with significant capacity expansions, including 4,500 metric tons of spray-dried capacity by March 2026 and a 5,500 metric tons freeze-dried facility by FY27. Management highlighted improved profitability driven by a shift towards higher-value consumer packs and efficient cost management.

Highlights

  • Consolidated revenue for Q3 FY26 grew 71% YoY to INR 1,505 million, driven by higher volumes, better realization, and improved product mix.

  • EBITDA for Q3 FY26 increased 79% YoY to INR 287 million, with EBITDA margin improving to 19.1% due to disciplined cost management and operating leverage.

  • Profit after tax for Q3 FY26 grew 54% YoY to INR 191 million.

  • The company achieved full utilization of its existing 6,500 metric tons per annum instant coffee capacity in Q3 FY26.

  • Operating cash flow turned positive in Q3 FY26, with the company expecting to achieve a breakeven cash flow position for the full FY26.

Key financials

2 periods

Q3

  • Revenue
    1,505 Mn
    YoY +71%
  • EBITDA
    287 Mn
    YoY +79%
  • EBITDA Margin
    19.1%
  • PAT
    191 Mn
    YoY +54%

9M

  • Total Income
    3,877 Mn
    YoY +91%
  • EBITDA
    691 Mn
    YoY +105%
  • PAT
    512 Mn
    YoY +109%

What they filed

Q1 FY27: revenue up 57.8%, net profit up 50.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue72 88 105 102 136 +89%151 +72%165 +57%161 +58%
EBITDA10 16 19 18 22 +120%29 +81%31 +63%32 +78%
Net profit8 12 16 14 18 +125%19 +58%21 +31%21 +50%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹60 Cr Freeze-dried coffee project: INR 200 crores from equity and internal accruals, INR 300 crores from debt (banks and other institutions). Additional spray-dried capacity: INR 45 crores from internal accruals.
    • Freeze-dried coffee plant (total project cost INR 500 crores) ₹450 Cr
    • Additional spray-dried and agglomerated capacity (4,500 metric tons) ₹45 Cr
    I think we have raised around INR 192 crores through equity for the FDC project. This is being utilized for equipment purchases, land and building, and other related expenses. So that is in line with our plans. In fact, the financial institutions have also given in-principle clearance for equipment financing. ... The total project cost will be the INR500 crores. Out of which, INR200 crores will be the equity and internal accruals and rest INR300 crores will be the debt, debt from the bank and other institutions. ... With regard to the spray-dried coffee, we have an additional capacity in the pipeline, which is 4,500 metric tons, for which the capex is INR 45 crores. This capex has already been utilized from our internal accruals.
  • Debt Debt disclosed Cost 6%
    The interest rate will be the 4 to 5 percentage including hedging cost it is that 6% to 7%.
  • Liquidity Liquidity disclosed Cash flow operating activities turned positive in Q3 FY26, expected to achieve a breakeven cash flow position for the full FY26.
    We are pleased to inform you that cash flow operating activities turned positive in the third quarter. The shortfall of INR1 89 Million reported in H1 FY '26 is expected to be fully offset, resulting in a breakeven cash flow position for FY '26.

Guidance & targets

Capacity

  • Additional spray-dried and agglomerated capacity Capacity · by end of FY26 · High confidence 4,500 metric tons per annum
    The additional spray-dried and agglomerated capacity of 4,500 metric tons per annum is expected to be commissioned by the end of FY '26.

    — Balakrishna Tati

  • Total installed capacity (spray-dried) Capacity · by end of FY26 · High confidence 11,000 metric tons per annum
    This will increase our total installed capacity by 69% to 11,000 metric tons per annum.

    — Balakrishna Tati

  • Freeze-dried coffee facility Capacity · by end of FY27 · High confidence 5,500 metric tons per annum
    I think I can say that by next FY '27, we should be in a position to commence commercial production of this freeze-dried coffee, which is a super-premium product.

    — Balakrishna Tati

  • Total installed capacity (all types) Capacity · by end of FY27 · High confidence 16,500 metric tons
    In addition to the 11,000 metric tons, we are going to add another 5,500 metric tons of freeze-dried coffee, which will take the total to approximately 16,500 metric tons. So these are the capacities that we are going to have by the end of FY '27.

    — Balakrishna Tati

  • Phase 2 Freeze-dried coffee capacity Capacity · mid/end of FY27 · Medium confidence additional 5,500 metric tons
    We are planning to initiate the additional 5,500 metric tons in phase 2 likely by mid/end of FY27.

    — Balakrishna Tati

Capacity Utilization

  • Spray-dried and agglomerated capacity utilization Capacity Utilization · Q1 FY27 · High confidence full capacity utilization
    with regard to this additional 4,500 metric tons, which is coming in March, I think we should be able to achieve full capacity utilization in the first quarter itself, because this is within the same facilities and the same plant.

    — Balakrishna Tati

  • Freeze-dried coffee capacity utilization (first year) Capacity Utilization · FY27 · Medium confidence 65-70%
    As for the freeze-dried coffee, it is possible that in the first year we operate at around 65% to 70% of capacity utilization.

    — Balakrishna Tati

Sales Mix

  • Consumer packs share Sales Mix · going forward · Medium confidence 65-70%

    From 60% today

    Overall target, you know going forward since we are already in plans of expansions of another 4,500 tons, certainly we'll try to maintain around 65% to 70% in a consumer packs and 30% in bulk.

    — Balakrishna Tati

Raw Material Sourcing

  • Indian beans share Raw Material Sourcing · going forward · Medium confidence 60%

    From 80-85% today

    We are right now procuring around 80%-85% domestically and 15%-20% imported coffee beans. But obviously, going forward, we plan to have around 60% Indian beans and 40% imported beans.

    — Balakrishna Tati

Tax Rate

  • Effective tax rate Tax Rate · from Q4 onwards · High confidence 25%

    From 24% today

    The tax rate is now at the full rate. From Q3 onwards, we are at the full tax rate of 25%.

    — Yarkali Kumar

Cash Flow

  • Operating cash flow Cash Flow · FY26 · High confidence breakeven
    The shortfall of INR1 89 Million reported in H1 FY '26 is expected to be fully offset, resulting in a breakeven cash flow position for FY '26.

    — Balakrishna Tati

What to watch in Q4 FY26

Commissioning of 4,500 MT spray-dried capacity

next quarter
Current Expected by end of FY26 (March 2026)
Target Operational and contributing to Q4 FY26/Q1 FY27 volumes

Why it matters

This capacity addition is crucial for immediate volume growth and improved operational efficiencies, impacting Q4 FY26 and Q1 FY27 results.

The additional spray-dried and agglomerated capacity of 4,500 metric tons per annum is expected to be commissioned by the end of FY '26.

Risks & concerns

  • Volatility in global coffee prices

    medium

    Coffee prices are very volatile, but the company manages this through cost-plus contracts and quarterly price adjustments, minimizing immediate impact on profitability. Good coffee output globally (e.g., Brazil) is expected to maintain stable or slightly lower prices.

    Management acknowledged

  • Dynamic operating environment

    medium

    The operating environment remains dynamic with respect to raw material prices, currency movement, and global demand trends. However, integrated manufacturing capabilities and export orientation position the company to navigate these challenges.

    Management acknowledged

Q&A highlights

8 direct
Product mix shift and its impact on profitability Direct
Because of the product mix earlier we were mostly focused on bulk sales. Now we are more focused on consumer packs. The consumer packs are packed in doy-packs, tins, and glass jars. That is giving higher revenue and higher realization, and we continue to focus more on consumer packs because that is what our customers are actually looking for.

Clarifies the driver behind improved realization and EBITDA per ton, indicating a strategic shift towards higher-margin products.

Asked by Sudarshan Padmanabhan

Capacity utilization for new and upcoming capacities Direct
with regard to capacity utilization, as we said, from Q3 onwards we are operating at full capacity utilization. In fact, Q4 will also be the same. ... I think we should be able to achieve full capacity utilization in the first quarter itself, because this is within the same facilities and the same plant. ... As for the freeze-dried coffee, it is possible that in the first year we operate at around 65% to 70% of capacity utilization.

Provides specific targets for utilization of both the additional spray-dried and the new freeze-dried capacities, offering visibility on future revenue generation.

Asked by Sudarshan Padmanabhan

Capex funding and breakdown for expansions Direct
The FDC project, the INR 500 crores that we have projected, for which we have already partly raised the funds and also tied up with financial institutions, is exclusively for the freeze-dried coffee plant. With regard to the spray-dried coffee, we have an additional capacity in the pipeline, which is 4,500 metric tons, for which the capex is INR 45 crores. This capex has already been utilized from our internal accruals.

Details the capital expenditure for both expansion projects and clarifies their funding sources (equity, debt, internal accruals), addressing investor concerns about financial leverage.

Asked by Aditya Singh

Tax rate outlook Direct
The tax rate is now at the full rate. From Q3 onwards, we are at the full tax rate of 25%.

Provides clear guidance on the future effective tax rate, which is crucial for earnings modeling.

Asked by Raj Shah

Working capital cycle and operating cash flow Direct
I think we are expecting to marginally reduce the working capital cycle in the coming quarters. That's one. And the next one what are you asking me? ... Yes, operating cash flows, I think, from Q3 and Q4 onwards will be on the positive side. In fact, for the whole year as well, it will be breakeven.

Addresses concerns about historical weak operating cash flow and high inventory days, providing a positive outlook for cash generation.

Asked by Raj Shah

Growth and realization in the freeze-dried coffee segment Direct
See, the global trend is such that freeze-dried coffee consumption is growing much faster than spray and agglomerated coffee, with almost 8% to 10% year-on-year growth globally. ... Yes. The price differential between the spray and the freeze-dried is approximately around 40% higher.

Highlights the significant growth potential and higher margins associated with the freeze-dried coffee segment, justifying the company's investment in this area.

Asked by Varshit Shah

Raw material procurement strategy shift Direct
We are targeting to get this additional coffee beans, imported coffee beans, typically from the countries like in African countries. Uganda is the country which produces the Robusta coffee, and that coffee is quite acceptable to most of my customers. And also Indonesia Robusta coffee. And we are targeting these to add maybe Q2 of this FY '27.

Explains the rationale and timeline for diversifying raw material sourcing, which could impact cost and supply chain stability.

Asked by Shubham Bhatt

Interest rate for the freeze-dried coffee project debt Direct
The interest rate will be the 4 to 5 percentage including hedging cost it is that 6% to 7%. ... It will be FY '28.

Provides specific details on the cost of debt for the major capex project and when it will start impacting the P&L, aiding financial modeling.

Asked by Sourabh Gupta

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Vintage Coffee & Beverages Limited reported robust financial performance for Q3 FY26. Consolidated revenue surged by 71% year-on-year to INR 1,505 million, driven by increased volumes, better realization, and an improved product mix. EBITDA for the quarter grew 79% year-on-year to INR 287 million, with the EBITDA margin expanding to 19.1%. Profit after tax also saw a significant increase of 54% year-on-year, reaching INR 191 million. For the nine months ended December 31, 2025, total income rose 91% to INR 3,877 million, and PAT increased 109% to INR 512 million.

Capacity Expansion and Utilization

The company achieved full utilization of its existing instant coffee capacity of 6,500 metric tons per annum in Q3 FY26, supported by strong order inflow and efficient production planning. In line with its growth strategy, Vintage Coffee is expanding its capacity significantly. An additional 4,500 metric tons per annum of spray-dried and agglomerated capacity is expected to be commissioned by the end of FY26, increasing total capacity to 11,000 metric tons. Furthermore, a 5,500 metric tons per annum freeze-dried coffee facility is on track for commercial production by the end of FY27, which will bring the total capacity to approximately 16,500 metric tons.

Product Mix and Profitability Improvement

Vintage Coffee is strategically shifting its product mix towards higher-value offerings. Currently, consumer packs account for 60% of sales, with bulk sales making up 40%. The company aims to further increase the share of consumer packs to 65-70% going forward, which includes products packed in doy-packs, tins, and glass jars. This focus on value-added products has already led to a 7-8% increase in realization and a 20% increase in gross profit per ton, contributing to higher EBITDA levels.

Capital Expenditure and Funding

The total project cost for the new 5,500 metric tons freeze-dried coffee facility is INR 500 crores. This will be funded by INR 200 crores from equity and internal accruals, with the remaining INR 300 crores sourced through debt from banks and other financial institutions. Approximately INR 60 crores has already been spent on this project. Additionally, the INR 45 crores capex for the 4,500 metric tons spray-dried capacity expansion has been fully utilized from internal accruals. The cost of debt for the freeze-dried project is expected to be 4-5% including hedging, totaling 6-7%, and will start impacting the P&L from FY28.

Raw Material Sourcing Strategy

Currently, Vintage Coffee procures 80-85% of its Robusta coffee domestically and 15-20% from imports. The company plans to adjust this mix to 60% Indian beans and 40% imported beans going forward. This diversification strategy involves targeting African countries like Uganda and Indonesia for imported Robusta coffee, with this shift expected to be implemented by Q2 FY27. This aims to ensure consistent quality and potentially optimize costs.

Working Capital and Cash Flow Outlook

The company's operating cash flow turned positive in Q3 FY26, a significant improvement after a shortfall in H1 FY26. Management expects to achieve a breakeven cash flow position for the full FY26. The working capital cycle, which currently stands at around 100-110 days, is anticipated to marginally reduce in the coming quarters. This improvement is attributed to better logistics and production planning, despite longer transit times for imported beans and export of instant coffee.

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