Coffee Day Enterprises FY26 Results with Auditor Disclaimer

Key Financial Figures (Standalone - Coffee Day Enterprises Ltd.)

For the Year Ended (FY26) 31-Mar-26 (Audited) vs. FY25 (Audited)

Total Income: ₹252.75 million (FY25: ₹257.57 million)
Total Expenses: ₹353.63 million (FY25: ₹2,077.01 million)
Profit/(Loss) before Exceptional Items & Tax: (₹100.88) million (FY25: (₹1,819.44) million)
Exceptional Items: ₹1,840.15 million (FY25: (₹596.47) million)
Profit/(Loss) before Tax: ₹1,739.27 million (FY25: (₹2,415.91) million)
Profit/(Loss) for the period (after tax): ₹1,739.27 million (FY25: (₹2,415.91) million)
Earnings Per Share (Basic & Diluted): ₹8.23 (FY25: (₹11.44))
Paid-up Equity Share Capital: ₹2,112.52 million
Reserves: ₹15,805.12 million (FY25: ₹14,058.56 million)
Net Worth: ₹17,917.64 million (FY25: ₹16,171.08 million)

For the Quarter Ended (Q4FY26) 31-Mar-26 (Audited) vs. Q3FY26 (Unaudited) vs. Q4FY25 (Audited)

Total Income: ₹46.58 million (Q3FY26: ₹100.38 million; Q4FY25: ₹50.74 million)
Profit/(Loss) for the period: ₹1,304.98 million (Q3FY26: ₹363.10 million; Q4FY25: (₹2,465.21) million)
Earnings Per Share (Basic & Diluted): ₹6.18 (Q3FY26: ₹1.72; Q4FY25: (₹11.67))

Key Financial Figures (Consolidated - Coffee Day Enterprises Ltd. & Subsidiaries)

For the Year Ended (FY26) 31-Mar-26 (Audited) vs. FY25 (Audited)

Total Income: ₹1,154.40 million (FY25: ₹1,125.64 million)
Profit/(Loss) for the period attributable to owners: ₹203.07 million (FY25: (₹58.05) million)
Earnings Per Share (Basic & Diluted): ₹9.61

For the Quarter Ended (Q4FY26) 31-Mar-26 (Audited) vs. Q3FY26 (Unaudited) vs. Q4FY25 (Audited)

Profit/(Loss) for the period attributable to owners: ₹132.06 million (Q3FY26: ₹55.30 million; Q4FY25: (₹33.02) million)
Earnings Per Share (Basic & Diluted): ₹6.25 (Q3FY26: ₹2.62; Q4FY25: (₹1.56))

Key Financial Figures (Material Subsidiary - Coffee Day Global Limited, Consolidated)

For the Year Ended (FY26) 31-Mar-26 (Audited) vs. FY25 (Audited)

Revenue from Operations: ₹1,093.93 Cr (FY25: ₹1,034.63 Cr); Growth: 6% YoY
EBITDA: ₹198 Cr (FY25: ₹156 Cr); Growth: 27% YoY
Profit after Tax: ₹14.43 Cr (FY25: Loss of ₹175.92 Cr)
EPS (Basic & Diluted): ₹0.75 (FY25: (₹9.19))

For the Quarter Ended (Q4FY26) 31-Mar-26 (Audited) vs. Q3FY26 (Unaudited) vs. Q4FY25 (Audited)

Revenue from Operations: ₹275.78 Cr (Q3FY26: ₹280.58 Cr; Q4FY25: ₹259.71 Cr); Growth: 6% YoY
EBITDA: ₹58 Cr (Q3FY26: ₹68 Cr; Q4FY25: ₹37 Cr); Growth: 57% YoY
Profit after Tax: ₹0.25 Cr (Q3FY26: ₹30.90 Cr; Q4FY25: Loss of ₹142.06 Cr)

Audit Report & Qualifications

The statutory auditors, M/s. Venkatesh & Co., issued a Disclaimer of Opinion on both the standalone and consolidated financial results for FY26. The basis for the disclaimer is summarized in the 'Statement on Impact of Audit Qualifications' and includes:

1. Recoverability of dues from group companies: Lack of sufficient evidence regarding the recoverability of dues amounting to ₹1,444.49 Crores from group companies (subsidiaries). The impact is not quantifiable by management or auditors. This is the seventh consecutive year of this qualification.

2. Default in debt repayment & non-compliance with covenants: Instances of non-compliance with debt covenants, including interest and principal repayment defaults. The company has not obtained balance confirmations for loans from two lenders amounting to ₹76.98 Crores. The impact is not quantifiable. This is the seventh consecutive year of this qualification.

3. Going Concern Assumption: Inability to comment on the appropriateness of the going concern assumption due to the implications of the above matters, despite management's assertion based on positive net worth. This is the seventh consecutive year of this qualification.

4. Consolidated Specific Issues: Additional disclaimers on the consolidated results regarding the recoverability of ₹3,357.13 Crores from Mysore Amalgamated Coffee Estates Limited (MACEL) as directed by SEBI, a financial guarantee of ₹41.67 Crores, and uncertainties related to a corporate debt restructuring plan at subsidiary CDGL.

Exceptional Items (Standalone CDEL)

The significant standalone profit in FY26 was primarily driven by exceptional gains totaling ₹1,840.15 million, which include:

Gain on settlement of loan with Credit Opportunities India Pte Ltd and India Special Situations Scheme-I: ₹78.55 Cr gain on settlement and ₹55 Cr from adjustment of invoked share sales.
Gain on settlement with Axis Bank: ₹35.43 Cr gain recognized on settling dues of ₹70 Cr for ₹35 Cr paid in Dec 2025 and ₹35 Cr paid in Feb 2026.
Gain from lender's sale of invoked CDGL shares: ₹16.4 Cr adjusted against subsidiary Coffee Day Hotels and Resorts Private Limited's loan.
Impact of New Labour Codes: One-time provision of ₹13.70 million for employee benefits.

FY25 included an exceptional impairment loss on investment in subsidiaries of ₹596.47 million and a loss on invocation of pledged shares of ₹1,710.65 million.

Debt, Defaults, and Settlements

The company and its subsidiaries have faced debt covenant breaches and defaults.

A lender had filed an application with NCLT Bangalore for CIRP, which was admitted on 8-Aug-2024. CDEL appealed to NCLAT Chennai, which stayed the order on 14-Aug-2024. The Supreme Court directed NCLAT to dispose of the appeal by 21-Feb-2025. NCLAT allowed CDEL's appeal on 27-Feb-2025.
The company entered into settlement agreements with several lenders (Credit Opportunities, India Special Situations, Axis Bank), resulting in the exceptional gains noted above.
Subsidiary Coffee Day Global Limited is undergoing a restructuring process under the RBI's Prudential Framework, with an 'in-principle' approval from lenders received.
On 7-Apr-2026, the company disclosed defaults on payments of interest/principal to banks/financial institutions per SEBI circular.

Subsidiary Updates

Coffee Day Global Limited (CDGL): The material subsidiary showed improved performance with revenue and EBITDA growth. It accounted for exceptional items including a ₹7.65 Cr provision for New Labour Codes and ₹36.55 Cr related to OTS, land sale, and lease cancellation.
AC & C Hospitality Resorts LLP: On 30-Jan-2025, CDEL's subsidiary CDHRPL restructured its LLP agreement, resulting in a loss of control and a one-time gain of ₹58.89 Cr in FY25.
Foreign Subsidiaries: CDGL's foreign subsidiaries (A N Coffee Day, Coffee Day Gastronomie, Coffee Day Czech Republic) were liquidated during the year and subsequently deconsolidated.

SEBI Order and MACEL Dues

SEBI's order dated 24-Jan-2023 directed CDEL to recover dues from MACEL and imposed a penalty of ₹26 Cr. CDEL appealed to SAT, which granted a stay on the penalty. An independent law firm, Crest Law, was appointed on 3-Apr-2023 per NSE instructions, and arbitration proceedings against MACEL have been initiated. The total dues from MACEL to the group stand at ₹3,357.13 Cr as of 31-Mar-2026. No provision has been made in the books for this amount.

Capital Structure Impact

As of 31-Mar-2026, the standalone paid-up equity share capital remained unchanged at ₹2,112.52 million. There were no disclosures of fresh issuances, buybacks, or changes in share capital during the period reported in this document. Previous invocations of pledged shares in subsidiaries (TDL & CDGL) by lenders were noted, impacting the company's investment carrying value in prior years.

Cash Flow Implications (Standalone)

The standalone cash flow statement for FY26 shows:

Cash from Operations: ₹1,894.43 million (primarily from changes in current and non-current loans)
Cash used in Investing: (₹5.39) million
Cash used in Financing: (₹1,897.57) million (mainly repayment of borrowings ₹1,845.63 million)
Net decrease in Cash: (₹8.53) million
Closing Cash & Equivalents: ₹79.81 million (31-Mar-25: ₹88.34 million)

Contingent Liabilities

A contingent liability exists for a third tranche payment of ₹50 Cr payable by 30-Jun-2028 to Credit Opportunities/India Special Situations, contingent upon achieving certain share price or EBITDA milestones.

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