Vintage Coffee & Beverages has successfully commissioned its major capacity expansion project, marking a significant achievement in the company's growth strategy. The company announced the commencement of commercial production for its additional 4,500 MTPA soluble coffee capacity on March 23, 2026, ahead of the originally planned March 31, 2026 timeline.

Successful Commissioning of Expanded Capacity

The brownfield expansion project has been executed at the company's wholly owned subsidiary's instant coffee manufacturing facility, located near Rachur Village, Veldanda Mandal, Nagar Kurnool District, Telangana. With this commissioning, the company's total installed production capacity has increased from 6,500 metric tons to 11,000 metric tons per annum.

Enhanced Production Capabilities

Following the expansion, the company's annual production capabilities now comprise 6,000 metric tons of spray-dried coffee and 5,000 metric tons of agglomerated coffee. Chairman and Managing Director Mr. Balakrishna Tati confirmed that the new equipment is performing satisfactorily and is expected to enhance production by approximately 70% on a per annum basis.

Strategic Funding and Financial Discipline

The entire expansion has been funded through internal accruals, demonstrating the company's strong financial discipline, robust cash flows, and commitment to sustainable growth without reliance on external debt. This approach reflects the company's solid financial position and cash generation capabilities.

Future Growth Initiatives

In line with its strategic growth initiatives, Vintage Coffee & Beverages has commenced development of a greenfield project for an ultra-modern freeze-dried instant coffee plant near Hyderabad. The proposed facility will be equipped with advanced European technology and designed with an installed capacity of 5,500 metric tons per annum, expected to commence commercial production next year.

Market Outlook and Management Commentary

Addressing recent global developments, Mr. Balakrishna Tati noted that the coffee industry remains largely unaffected by recent Middle East crises since major coffee producing nations are not located in that region. Raw material availability remains robust, and the company is managing its supply chain to ensure timely delivery to customers. The management expects to ramp up production at the new 4,500 MTPA facility through Q1 FY27, with demand environment remaining strong and the company on track to achieve its FY27-FY28 plans.

Vintage Coffee & Beverages Limited has received a clean monitoring agency report for the quarter ended December 31, 2025, confirming compliance with regulatory requirements for its preferential issue proceeds utilization. The report, prepared by Infomerics Valuation and Rating Limited, shows systematic deployment of funds across stated objects without any deviations.

Preferential Issue Structure and Subscription

The company's preferential issue was structured as a combination of equity shares and convertible warrants, with partial subscription from investors.

The equity shares were priced at Rs. 124.00 per share, including a share premium of Rs. 114.00 per share. The issue was partially subscribed, leading to proportionate revision in object utilization.

Fund Utilization Progress Across Objects

The monitoring report reveals systematic utilization of proceeds across four primary objects during Q3FY26.

Capital Expenditure Investment in Subsidiary

The largest allocation of Rs. 95.70 crore is designated for investments in the company's wholly owned subsidiary (WOS) for capital expenditure improvements. During Q3FY26, the company transferred Rs. 62.35 crore to its WOS for plant and machinery enhancement projects. The monitoring agency verified invoices and payments made by the WOS for such utilization, confirming proper deployment of funds.

Deployment of Unutilized Funds

The company has deployed Rs. 51.44 crore of unutilized proceeds in fixed deposits and current accounts to ensure capital preservation while maintaining liquidity.

Regulatory Compliance and Monitoring

Infomerics Valuation and Rating Limited, appointed as the monitoring agency under SEBI ICDR Regulations, confirmed zero deviation from the objects stated in the offer document. The agency verified all utilizations through bank statements, CA certificates, invoices, and ledgers. All statutory approvals, including principal approval from BSE, have been obtained as required.

Implementation Timeline and Status

All four objects are progressing within the stipulated 12-month timeline from the date of fund receipt, with no delays reported. The company continues to deploy funds systematically across working capital requirements, subsidiary investments, and general corporate purposes while maintaining transparency in fund utilization reporting.