Shares of Coffee Day Enterprises Ltd jumped 5% on Tuesday after the company reached a settlement agreement with IDBI Trusteeship to resolve an outstanding debt of ₹205 crore. The stock rose to ₹24.54, marking a 4.96% increase from its previous close of ₹23.38 on the Bombay Stock Exchange (BSE). With this rise, the company’s market capitalization touched ₹518.41 crore.
Coffee Day Enterprises Settles ₹205 Crore Debt
Coffee Day Enterprises will settle the debt in three tranches. As part of the agreement, the company plans to sell 12.41% of its pledged and invoked shares of Coffee Day Global to a third party for ₹55 crore.
Coffee Day Enterprises: Co Settles Outstanding Debt For 2.05 Billion Rupees pic.twitter.com/NaIXUluLCb
— sustainme.in®️ (@sustainme_in) March 17, 2025
The settlement agreement was approved by the Audit Committee and the company’s Board of Directors in a meeting held on March 17, 2025. The company stated that this move reinforces its commitment to reducing its debt and creating long-term value for its stakeholders.
“This settlement ensures the debt reduction commitment of the company and its subsidiaries in the interest of all stakeholders,” said Coffee Day Enterprises.
NCLAT Ruling in Favor of Coffee Day Enterprises
Earlier, the company faced insolvency proceedings initiated by IDBI Trusteeship Services over an alleged loan default of ₹228 crore. However, on March 3, 2025, the National Company Law Appellate Tribunal (NCLAT) dismissed the bankruptcy plea, providing relief to Coffee Day Enterprises.
The legal dispute initially began when the National Company Law Tribunal (NCLT) admitted IDBI’s plea, leading to the commencement of the Corporate Insolvency Resolution Process (CIRP). Coffee Day Enterprises challenged the decision in NCLAT, which granted a temporary stay on the insolvency process.
Following this, IDBI Trusteeship Services escalated the case to the Supreme Court, which directed the NCLAT to expedite the appeal by February 21, 2025. Since the NCLAT failed to deliver its verdict within the given time, the insolvency proceedings resumed. However, with the recent verdict in favor of Coffee Day Enterprises, the company successfully avoided insolvency.
Debt Reduction Journey
Coffee Day Enterprises has been actively working on reducing its massive debt. In 2020, the company sold its Global Village Tech Park to Blackstone for ₹2,800 crore. Additionally, it has sold off non-core assets, closed loss-making outlets, and streamlined operations to reduce financial stress.
At its peak, the company had a debt of over ₹7,000 crore. The current settlement marks significant progress in its debt reduction strategy.
Financial Performance
Coffee Day Enterprises managed to remain resilient in its business operations despite the legal challenges. The company reported an 8.94% year-on-year (YoY) increase in revenue, rising from ₹257 crore in Q3 FY24 to ₹280 crore in Q3 FY25. On a quarter-on-quarter (QoQ) basis, revenue also increased by 4.08% from ₹269 crore.
However, the company faced losses. It reported a net loss of ₹11 crore in Q3 FY25, compared to a net profit of ₹76 crore in the same period last year. On a QoQ basis, the net loss also widened from ₹4 crore in the previous quarter.
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About Coffee Day Enterprises
Founded by V.G. Siddhartha in 1996, Coffee Day Enterprises is the parent company of the well-known Café Coffee Day (CCD) chain. The brand pioneered café culture in India and operates a vast network of outlets nationwide. While the coffee business remains the company’s core, past expansions into logistics, real estate, and IT services contributed to its financial struggles.
Conclusion
With the ₹205 crore debt settlement and the dismissal of insolvency proceedings, Coffee Day Enterprises has taken a significant step toward financial stability. The company’s focus on debt reduction and operational improvements signals a positive outlook for its shareholders and stakeholders.
Investors will be closely watching how the company navigates its challenges and returns to profitability in the coming quarters.
Disclaimer: This post is just for your information and shouldn’t be taken as investment. Before deciding what investments to make, investors should talk to financial experts.
