Coffee Day Enterprises Limited has received an adjudication order from the Securities and Exchange Board of India (SEBI) imposing monetary penalties for alleged non-compliance with financial reporting requirements. The company disclosed this development through a regulatory filing dated March 03, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

SEBI Adjudication Order Details

The adjudication order, dated March 02, 2026, was issued under Section 15-I of the SEBI Act, 1992 read with Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995. The order addresses alleged violations spanning multiple financial years.

Penalties Imposed

SEBI has imposed monetary penalties on Coffee Day Enterprises Limited under Section 15HB of the SEBI Act, 1992. The regulatory action extends beyond the company to include individual accountability for the violations.

The penalties have been levied on:

• The company itself
• Certain past directors and key managerial personnel
• Present directors and key managerial personnel

Company's Response and Impact Assessment

Coffee Day Enterprises Limited has stated that the SEBI order will not have any material impact on the company's operations. The company emphasized that there is no material impact on the financial, operational or other activities arising from the adjudication order.

The disclosure was signed by Sadananda Poojary, Company Secretary & Compliance Officer, and submitted to the stock exchanges as part of the company's regulatory compliance obligations. The company has attached a copy of the SEBI order with its filing for stakeholder reference.

Regulatory Context

The adjudication order relates to alleged non-compliance with provisions of the SEBI Act and SEBI (LODR) Regulations, 2015, specifically concerning financial reporting and disclosure requirements. The violations span a four-year period from FY 2020-21 to FY 2023-24, indicating sustained regulatory concerns regarding the company's compliance practices during this timeframe.

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.