Coffee Day Enterprises Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing improved operational performance across key metrics. The company reported consolidated revenue of ₹286 crores for Q3FY26, marking a steady 2% year-on-year growth from ₹280 crores in the corresponding quarter of the previous fiscal year.

Financial Performance Highlights

The company's financial performance demonstrated significant improvement in profitability metrics during the quarter:

The most notable improvement was in EBITDA, which surged 174% to ₹115 crores compared to ₹42 crores in Q3FY25. This substantial increase was primarily driven by one-time gains of ₹63 crores during the quarter, while EBITDA without one-time items stood at ₹52 crores, representing a 24% year-on-year growth.

Nine-Month Performance

For the nine-month period ending December 31, 2025, the company maintained consistent growth momentum:

Subsidiary Performance

Coffee Day Global Limited, the company's material subsidiary focused on coffee business operations, delivered strong results during the quarter. The subsidiary reported net revenue of ₹281 crores for Q3FY26, representing a 5% year-on-year increase from ₹268 crores in Q3FY25.

Coffee Business Metrics

The subsidiary's EBITDA performance was particularly strong, growing 72% to ₹68 crores, while profit after tax turned positive at ₹31 crores compared to a loss of ₹11 crores in the previous year quarter.

Exceptional Items and One-Time Gains

The quarter's performance included several exceptional items that contributed to the improved financial metrics. These included one-time gains on loan settlements, losses on lease cancellations, and provisions related to the implementation of New Labour Codes affecting gratuity calculations. The company recognized a gain of ₹354.29 million from a loan settlement with Axis Bank during the quarter.

Operational Metrics

Despite revenue growth, certain operational metrics showed mixed trends. The Average Sales Per Day (ASPD) for the coffee business was ₹21,296 in Q3FY26 compared to ₹21,702 in Q3FY25. Same Store Sales Growth (SSSG) remained negative at -3.5% for the quarter, indicating challenges in comparable store performance.

Board Meeting and Compliance

The Board of Directors approved these unaudited financial results in a meeting held on February 12, 2026, which commenced at 4:30 PM and concluded at 6:45 PM. The results have been prepared in accordance with Indian Accounting Standards and SEBI regulations, though the statutory auditors have expressed a disclaimer of conclusion in their limited review report due to certain matters requiring further evidence.

Coffee Day Enterprises Limited has secured temporary relief from the Karnataka High Court in a Foreign Exchange Management Act (FEMA) case, with proceedings by the Enforcement Directorate (ED) deferred until February 23, 2026. The company disclosed this development to stock exchanges on January 22, 2026, following a news report about the court's decision.

Case Background and ED Notice

The company received a notice from the Enforcement Directorate concerning a Foreign Direct Investment (FDI) transaction undertaken in 2010. The notice pertains to alleged contraventions under the applicable provisions of the Foreign Exchange Management Act, 1999, and the rules and regulations framed thereunder as applicable at the relevant time.

Court Proceedings and Relief

After examining the matter and receiving legal advice that it had acted in compliance with applicable laws, Coffee Day Enterprises challenged the ED notice before the Karnataka High Court. On January 21, 2026, the court provided significant relief by deferring the ED proceedings under FEMA until the next hearing date.

Company's Position and Impact Assessment

The company maintains its position that it has acted in full compliance with applicable laws during the 2010 FDI transaction. Coffee Day Enterprises emphasized that the matter is currently sub judice and the company is actively contesting the allegations. Importantly, the company stated that at this stage, there is no impact on its financials, operations, or other business activities.

The company also confirmed it is not aware of any undisclosed information that could explain recent trading movements in its stock, ensuring transparency with market participants and regulatory authorities.

Regulatory Compliance and Disclosure

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in response to a news report published in the Economic Times on January 21, 2026. The company's proactive communication demonstrates its commitment to keeping stakeholders informed about material developments that could affect investor sentiment or trading activity.