1.At a Glance

Someone tell CCL Products to slow down before they turn caffeine itself into a commodity. The instant coffee behemoth just reported a52.6% YoY revenue surgeand a36.4% jump in quarterly profit, all while juggling coffee bean inflation, expanding Vietnamese plants, and even buying a stake in a renewable energy firm (because, why not add some green tea to the coffee portfolio?).

At ₹889 per share and amarket cap of ₹11,866 crore, the company sits comfortably between “smallcap rocket” and “midcap caffeine overdose.” Over the past year, it’s brewed a32.7% return, outpacing most FMCG peers who are still figuring out how to repackage turmeric.

With anEPS of ₹25.3,P/E of 35.1,ROE of 17%, andROCE of 13.1%, the numbers are more balanced than your barista’s latte art. But under the froth, there’s some debt steam rising — ₹1,815 crore of it, to be exact.

Still, CCL’s operations inIndia, Vietnam, and Switzerlandkeep its blend diversified, with capacity utilization at~100% in Indiaand65–70% in Vietnam. Add a recent 30–35% price hike in retail packs, and you’ve got a company turning bitter beans into sweet profits.

2.Introduction – The Bean Counters’ Delight

Once upon a time, CCL Products started life asThe Sahayak Finance and Investment Corporation Limited. Yes, finance. Imagine a finance company waking up one day and deciding to make coffee. The caffeine kick must’ve been strong, because by 1994, it becameContinental Coffee Limited, and laterCCL Products (India) Ltd— the ultimate metamorphosis from balance sheets to coffee beans.

Today, it’s a global caffeine supplier to over90 countries, armed with35,000 metric tonnesof capacity split across spray-dried, freeze-dried, and agglomerated coffee. Basically, if you’ve ever had a “private label” instant coffee from anywhere between Chennai and Chile, chances are it quietly came from CCL’s factories.

From the sleepy village of Duggirala (Andhra Pradesh’s own “Bean Street”) to Switzerland’s agglomeration units, this company’s geography is more global than most MBA student LinkedIn bios.

And while coffee prices globally spiked from$1,000/tonne to $5,000/tonne, CCL still delivered a strong quarter. The company didn’t panic — it just brewed harder, diversified smarter, and passed on costs like a true FMCG warrior.

But the best part? TheB2C arm — Continental Coffee —is now becoming the desi Starbucks for people who prefer sachets over baristas. With vending machines invading offices and hotels, Continental Coffee might soon be the official sponsor of your Monday morning survival.

3.Business Model – WTF Do They Even Do?

In short: they turn green beans into money beans.

CCL Products makes instant coffee —spray dried, freeze dried, roast and ground, decaf, and premix coffee. But beneath that aroma is a well-roasted business model that runs on three main engines:

1. Export B2B Business (The Big Kahuna)– Produces coffee for global brands that slap their labels on it and sell worldwide. This makes up the bulk of revenue, ensuring stability and scale.
2. Domestic B2C & Vending Business (The Fancy Latte)– The “Continental” brand is CCL’s way of saying, “We can sell directly to caffeine addicts too.” The company’s3-in-1 THIScoffee sachets andBlack Editionfreeze-dried blends are slowly making their way into homes, flights, and offices.
3. Institutional & Foodservice (The Silent Money Brewer)– Supplying coffee to hotel chains like Radisson, Club Mahindra, and airlines like Indigo. If you’ve ever had mediocre airplane coffee, now you know who to thank — but in this case, it’s probably better than most.

With plants inIndia (two sites in Andhra Pradesh), Vietnam, and Switzerland, and nearly100% utilization in India, CCL is at the “we need more factories” phase. That’s why the Vietnam expansion in FY25 is key — it just got completed, giving the company more brewing muscle.

So, yes — they don’t just make coffee. Theyowncoffee, globally.

4.Financials Overview

Quarterly Comparison Table (₹ in crore):

Annualised EPS:₹7.55 × 4 = ₹30.2Implied P/E:₹889 / ₹30.2 =29.4x

(Screener shows 35.1x