Coffee Day Enterprises Limited has entered into a One Time Settlement (OTS) agreement with Axis Bank Limited for ₹70.00 crores to settle all outstanding loan dues. The agreement was approved by Axis Bank and disclosed by the company on December 29, 2025, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Settlement Structure and Payment Schedule

The OTS agreement provides for a structured payment plan spread across multiple installments over nine months. The settlement amount and timeline are detailed below:

Strategic Debt Reduction Initiative

The company has stated that the primary reason for opting for the One Time Settlement is to reduce its debt liability. This settlement represents a full and final resolution of all dues payable to Axis Bank Limited under the existing loan arrangement.

The OTS structure allows Coffee Day Enterprises to manage its cash flow effectively while ensuring complete closure of the outstanding obligations. The largest payment of ₹35.00 crores is scheduled for December 31, 2025, with the remaining amount distributed across three subsequent quarters.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically under Regulation 30 of the SEBI (LODR) Regulations, 2015. The intimation was signed by Sadananda Poojary, Company Secretary and Compliance Officer, ensuring proper regulatory adherence.

This settlement agreement marks a significant step in the company's debt restructuring efforts and provides clarity on the resolution timeline for stakeholders. The payment plan, structured through September 2026, aims for systematic debt resolution, demonstrating Coffee Day Enterprises' commitment to reducing its debt burden.

Coffee Day Enterprises has announced a significant debt restructuring initiative, deciding on a ₹70 crore one-time settlement with Axis Bank as part of its strategy to reduce overall debt burden. The company has established a structured payment plan that extends through September 2026, providing a clear timeline for debt resolution.

Settlement Agreement Details

The settlement arrangement represents a strategic approach to debt management, allowing the company to address its financial obligations with Axis Bank through a negotiated one-time settlement amount. This agreement demonstrates the company's proactive stance in managing its debt portfolio and working collaboratively with financial institutions to achieve mutually beneficial outcomes.

Payment Structure and Timeline

The payment plan established through September 2026 provides Coffee Day Enterprises with a structured approach to fulfilling its settlement obligations. This extended timeline allows the company to manage its cash flows effectively while ensuring compliance with the agreed settlement terms. The systematic payment structure is designed to balance the company's operational requirements with its debt resolution commitments.

Debt Reduction Strategy

This settlement with Axis Bank forms part of Coffee Day Enterprises' broader debt reduction strategy. By negotiating a one-time settlement, the company aims to lower its overall debt burden and improve its financial position. The agreement reflects the company's commitment to addressing its financial obligations while maintaining operational stability and business continuity.