CCL Products, one of India’s leading coffee manufacturers, is entering what analysts describe as a phase of higher-quality and more sustainable growth, supported by strong volume momentum, improving margins and steady deleveraging.
In the December quarter (Q3FY26), the company reported a sharp rise in performance, with revenue, EBITDA and profit after tax growing 39%, 28% and 59% year-on-year respectively. The growth was driven by 18–20% volume expansion and an improvement in EBITDA per kilogram to ₹140, exceeding earlier guidance. For the first nine months of FY26, EBITDA growth stood at 38%, significantly above the company’s full-year guidance of 15–20%.
Analysts now expect this operating momentum to continue. EBITDA growth of 28% is forecast for FY26, followed by 16% in FY27, largely due to an improved product mix and structurally higher profitability per unit.
A key driver of this transition is the company’s fast-growing B2C business, which continues to expand at a compounded annual rate of 30–40%. The segment is expected to generate ₹7 billion in revenue by FY28, accounting for a growing share of overall sales, with margins gradually improving towards 7–8%.
At the same time, CCL Products has made notable progress on its balance sheet. Gross debt has declined from ₹18 billion a year ago to ₹14 billion as of December 2025, while net debt has fallen to ₹12 billion. The reduction has been aided by tighter working capital management, including lower inventory levels and faster customer collections.
The outlook is further supported by signs of stabilisation in global green coffee prices. Management says reduced price volatility is restoring customer confidence and encouraging longer-term contracts, which has helped lift volume growth expectations to 15–20%.
On the back of improving returns, rising cash flows and stronger fundamentals, analysts have maintained a positive stance on the stock, citing continued earnings growth and improving capital efficiency.
