1. At a Glance
Vintage Coffee clocked ₹102 Cr in Q1FY26 sales, growing over 130% YoY, with net profit at ₹14 Cr. But a P/E of 36 and promoter pledge issues? This cup comes with a shot of volatility.
2. Introduction with Hook
If caffeine had a stock ticker, it would read VINCOFE. Vintage Coffee is riding a caffeine-fueled bull wave, going from ₹66 to ₹142 in a year—much like your morning energy graph.
- Q1FY26 Sales: ₹102 Cr (up 131%)
- Net Profit: ₹14.2 Cr
- Promoter Pledge: 26.6% (uh oh…)
The stock’s rise is hot, but so is the brewing risk underneath the froth.
3. Business Model (WTF Do They Even Do?)
Vintage Coffee makes and exports:
- Instant Coffee & Chicory
- Private Label Exports
- Brands: NeoCafe, Vintage
Its two subsidiaries—Vintage Coffee Pvt Ltd and Delecto Food—anchor the operations. The game is exports, B2B, and OEM-style manufacturing. Think Tata Elxsi, but for coffee.
4. Financials Overview
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Sales | ₹102 Cr | +131% |
| OPM | 18% | Flat-ish |
| Net Profit | ₹14 Cr | +100%+ |
| EPS | ₹1.12 | Solid |
TTM Snapshot:
- Sales: ₹366 Cr
- Net Profit: ₹50 Cr
- EPS: ₹3.98
- P/E: 36.3
- Book Value: ₹24.1
5. Valuation
- Price: ₹142
- P/E: 36.3x
- P/B: 5.89x
EduInvesting FV Range (FY26E):
₹110 – ₹155
The P/E says Starbucks. The fundamentals say CCD. A little frothy but not yet overflowing.
6. What’s Cooking – News, Triggers, Drama
- Q1 results solid: Highest ever topline
- Promoter stake fell to 38.7%
- 26.6% of promoter holding pledged
- Debtor Days up to 93.5
- Free-float increased: Public holding at 54.9%
Basically: business growing, but financial stress may be lurking in the beans.
7. Balance Sheet
| Item | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹105 Cr | ₹126 Cr |
| Reserves | ₹62 Cr | ₹177 Cr |
| Borrowings | ₹97 Cr | ₹82 Cr |
| Total Assets | ₹288 Cr | ₹409 Cr |
Highlights:
- Borrowings stable
- Reserves up 185%
- Asset-light model but CAPEX increasing subtly
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash (₹ Cr) |
|---|---|---|---|---|
| FY24 | -₹36 | -₹4 | ₹43 | ₹3 |
| FY25 | -₹26 | -₹48 | ₹76 | ₹2 |
Concern:
Still not self-sustaining via operations. Needs external financing to grow.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 17.1% |
| ROCE | 15.5% |
| OPM | 17.0% |
| ROA | 11.5% |
| Debtor Days | 93.5 |
| Inventory Days | 125 |
Verdict:
Decent returns, but rising working capital stress. Not red-zone yet, but leaning amber.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | OPM % | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY22 | ₹37 | -12% | -₹12 | -₹1.17 |
| FY23 | ₹63 | 24% | ₹4 | ₹0.37 |
| FY24 | ₹131 | 19% | ₹12 | ₹1.14 |
| FY25 | ₹309 | 17% | ₹40 | ₹3.19 |
Growth = rocket. Margin = flattening. But for now, the street only sees the revenue curve.
11. Peer Comparison
| Company | P/E | ROE | Sales (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|
| Vintage Coffee | 36.3 | 17.1% | ₹366 | ₹50 |
| TCC Concept | 44.8 | 9.2% | ₹83 | ₹42 |
| MSTC | 19.1 | 24.1% | ₹311 | ₹196 |
| Polo Queen | 726.7 | 1.4% | ₹80 | ₹0.63 |
Insight:
Vintage is priced for perfection. But others have earnings to match. High risk, high roast.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 38.68% (down from 72%)
- Pledge: 26.6% of promoter stake pledged
- FII Holding: 3.88%
- DII Holding: 2.55%
- Public Holding: 54.89%
- Shareholders Count: 21,359 (up from 1,495 in 2 years)
Interpretation:
Retail-heavy stock + falling promoter stake = volatile ride ahead.
13. EduInvesting Verdict™
Vintage Coffee has brewed a high-growth story—with 138% sales growth and a turnaround from red to black. But this latte comes with layers—pledged shares, weak cash flows, and valuation froth.
It’s hot now, but investors should sip cautiously.
Metadata
– Written by EduInvesting Research | July 20, 2025
– Tags: Vintage Coffee, Q1FY26, Instant Coffee, Export Business, Smallcap, Promoter Pledge, Financial Risk, Private Label
