1. At a Glance
From being India’s coffee date destination to starring in corporate debt thrillers, Coffee Day Enterprises Ltd (CDEL) has brewed everything — except profits lately. With 469 cafes, 48,788 vending machines, luxury resorts in Chikmagalur, Bandipur, Kabini, and even Andaman, you’d think cash would pour in like cappuccino foam. Instead, lenders have sent loan recall notices worth ₹433.91 crore, NCLT’s been involved, and the auditors have started writing disclaimers longer than the coffee menu.
2. Introduction
Imagine Netflix making a limited series titledBillion Dollar Brew. The opening scene? 2019. VG Siddhartha, the visionary founder, tragically passes away. Cut to Malavika Hegde stepping in as CEO, inheriting not just a coffee empire, but also a corporate caffeine crash of epic proportions.
CDEL isn’t just about selling lattes; it’s a mix of coffee retail, vending, hospitality, commercial real estate, IT parks, and, in its spare time, court cases. The flagship Café Coffee Day brand is still India’s largest coffee chain by footprint, but financial health? Let’s say it’s more “instant coffee” than “artisanal roast.”
The FY23 blow was brutal — a ₹392 crore write-off thanks to Sical Logistics’ NCLT outcome. FY24 saw recovery attempts, but FY25 and Q1 FY26 headlines are dominated by debt defaults, CIRP stays, and lenders sharpening their legal knives.
3. Business Model (WTF Do They Even Do?)
Core Operations:
- Coffee Business (~94% of FY23 revenue):
- 469 CCD cafes in 154 cities.
- 268 CCD Value Express kiosks.
- 48,788 vending machines (your office cappuccino is probably from here).
- Coffee bean trading.
- Hospitality (~5% of FY23 revenue):
- “The Serai” luxury resorts in Karnataka & equity stake in an Andaman resort.
- Occupancy? Let’s just say not everyone’s idea of a vacation is a coffee plantation tour.
- Other Corporate Ops (~1% of FY23 revenue):
- Leasing commercial office spaces, IT park income, a sprinkle of ad revenue, and the occasional one-off property sale windfall (~8% in FY23).
It’s a diversified setup — the kind consultants love to call “synergistic,” but in reality, it’s like juggling hot mugs on a tightrope.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 269 | 260 | 268 | 3.46% | 0.37% |
| EBITDA (₹ Cr) | 32 | 37 | 28 | -13.5% | 14.3% |
| PAT (₹ Cr) | 23 | -13 | -114 | NA | NA |
| EPS (₹) | 1.33 | -0.54 | -1.56 | NA | NA |
Commentary:Yes, PAT looks positive this quarter, but dig deeper — other income & one-off gains are doing the heavy lifting. Core coffee ops are still limping. On a TTM basis, EPS is negative, meaning P/E is “not meaningful” (fancy term for “why bother calculating?”).
5. Valuation (Fair Value RANGE only)
Method 1: P/E Approach
- Industry average P/E for restaurant peers: ~158.
- CDEL TTM EPS: ₹-0.88 → P/E not meaningful → Skipped.
Method 2: EV/EBITDA
- EV: ₹1,933 Cr
- EBITDA (TTM): ₹172 Cr
- EV/EBITDA: ~11.2x
- Peer median: ~20–25x → FV range (if applying peer multiples): ₹60–₹75.
Method 3: DCF (Simplified)
- Assume 5% annual growth in FCF (₹189 Cr base), 10% discount rate, 10-year horizon → FV range ₹55–₹65.
Final Educational FV Range:₹55–₹72.This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Debt Defaults:₹433.91 Cr defaulted; loan recall notices sent.
- CIRP Stay:Court-ordered stay giving temporary relief from insolvency proceedings.
- Auditor Disclaimers:On recoverability of dues, going concern status, and “other matters.” Translation: “We’re not saying it’s over… but it’s complicated.”
- Malavika Hegde Reappointment:WTD & Chairperson role extended to Dec 2025 — the
