Vintage Coffee & Beverages Limited , a prominent player in the instant coffee and beverage industry, has raised ₹5.75 crore through the conversion of warrants into equity shares. This move strengthens the company's financial position and demonstrates investor confidence in its growth prospects.

Key Details of the Warrant Conversion

Background and Impact

The warrant conversion follows the company's earlier action on April 16, 2024, when it allotted 12,50,000 fully convertible warrants to promoters at an issue price of ₹46.00 per warrant. At that time, the company received 25% of the total consideration, amounting to ₹1,43,75,000.00.

This recent conversion of all 12,50,000 warrants into fully paid-up equity shares not only injects fresh capital into the company but also reflects the promoters' confidence in Vintage Coffee & Beverages' future prospects. The additional funds may support the company's growth initiatives and operational needs.

Regulatory Compliance

The allotment of equity shares upon warrant conversion was carried out in compliance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the applicable provisions of the Companies Act, 2013. The company has informed the stock exchanges as per the requirements of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Overview

Vintage Coffee and Beverages Ltd, incorporated in 1980 and headquartered in Hyderabad, is a publicly listed company. The company specializes in manufacturing and exporting instant coffee, instant chicory, and other beverages. With a focus on private labeling, Vintage Coffee offers customized solutions to meet diverse customer needs.

As the company strengthens its financial position through such corporate actions, investors and market watchers may be keen to observe how this capital infusion translates into business growth and market expansion for Vintage Coffee & Beverages Limited in the coming quarters.

Vintage Coffee & Beverages Limited (VCBL), a leading manufacturer and exporter of instant coffee and chicory products, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant year-over-year growth across key metrics.

Financial Highlights

For Q2FY26, VCBL achieved:

The company's performance for the first half of FY26 was equally impressive:

Operational Developments

VCBL has reported several key operational developments:

1. Capacity Utilization: The company achieved 85% capacity utilization during Q2FY26, indicating strong demand for its products.

2. New Packaging Line: Commercial production at the fully automated packaging line in the subsidiary, Vintage Coffee Private Limited, commenced on October 31, 2024, ahead of the planned January 2025 timeline.

3. Capacity Expansion: VCBL is setting up an additional production line with 4,500 MTPA capacity, expected to be operational by the end of FY25-26. This will increase the total capacity from 6,500 MTPA to 11,000 MTPA.

4. Freeze-Dried Coffee Plant: The company has issued purchase orders for machinery to set up a greenfield project for a freeze-dried coffee plant with an installed capacity of 5,000 MTPA.

Management Commentary

Balakrishna Tati, Chairman and Managing Director of VCBL, commented on the results: "I am extremely delighted to share that your company has delivered very good results for the 2nd quarter and the first half of the FY26. These outstanding numbers are a testament to the unwavering commitment, resilience, and excellence demonstrated by our entire team."

He added, "We are confident of improving our performance further into H2FY26 on the back of robust demand and higher capacity utilisation. The company is on track to commence the additional 4,500 MTPA spray dried and agglomerated capacity expansion by end of FY26."

Future Outlook

VCBL appears well-positioned for future growth, with its capacity expansion plans and focus on premium products. The company's strategic initiatives, including the new freeze-dried coffee plant, are expected to drive consistent volume growth through FY28.

Investors and market watchers will likely keep a close eye on VCBL's performance in the coming quarters, as the company continues to expand its production capabilities and potentially increase its market share in the instant coffee and chicory products segment.