Detailed Summary

Key Financial Figures (Consolidated - ₹ Crores)

  • Revenue from Operations: ₹290.09 for Q1 FY27, compared to ₹269.53 in Q1 FY26 (8% increase YoY).
  • EBITDA: ₹51.93 for Q1 FY27, compared to ₹75.75 in Q1 FY27.
  • Net Profit/(Loss) Attributable to Owners: ₹0.84 for Q1 FY27, compared to ₹28.18 in Q1 FY26 (96% decrease YoY).
  • Basic & Diluted EPS: ₹0.04 for Q1 FY27, compared to ₹1.33 in Q1 FY26.

Key Financial Figures (Standalone - ₹ Millions)

  • Total Income: ₹57.68 for Q1 FY27.
  • Profit/(Loss) for the period: ₹69.98 for Q1 FY27.
  • Basic & Diluted EPS: ₹0.33 for Q1 FY27.
  • Paid-up equity share capital: ₹2,112.52 million.

Auditor's Report & Qualifications

The statutory auditor, Venkatesh & Co., issued a disclaimer of conclusion on both the standalone and consolidated financial results. The primary reasons are:

1. Recoverability of Group Company Dues: Inability to obtain sufficient evidence for the recoverability of ₹1,444.4 Crores (Standalone) / ₹3,357.13 Crores (Consolidated) in advances given to subsidiaries and Mysore Amalgamated Coffee Estates Limited (MACEL).

2. Debt Covenant Breaches & Lender Confirmations: Instances of non-compliance with debt covenants, interest/principal repayment defaults, and absence of balance confirmations for loans amounting to ₹76.98 Crores from two lenders, preventing verification of payable amounts.

3. Going Concern Assumption: The above issues cast significant doubt on the appropriateness of the going concern basis used to prepare the financial results.

4. Other Consolidated Issues: Disclaimer also extended due to issues in subsidiaries, including doubts on recoverability of a ₹275 Cr capital advance for land, non-recognition of an invoked financial guarantee of ₹41.67 Cr, and pending RBI approval for a foreign currency loan restructuring.

Exceptional Items

  • Q1 FY27 (Standalone): A gain of ₹89.8 million was recognized because a lender returned invoked shares of CDGL to the company after the subsidiary's borrowings were repaid.
  • FY26 (Standalone & Consolidated): Results included several one-time gains from loan settlements:
  • Gain of ₹85.5 million on settlement with Credit Opportunities India Pte Ltd and India Special Situations Scheme-I.
  • Gain of ₹550 million from adjustment due to sale of invoked shares by the above lender.
  • Gain of ₹354.29 million on settlement with Axis Bank.
  • Gain of ₹18.58 Crores from settlement by subsidiary Coffee Day Hotels and Resorts with Phoenix ARC and Clix Capital.
  • Impact of ₹13.70 million from the implementation of New Labour Codes on gratuity.

Significant Contingencies and Legal Matters

  • SEBI Order (Jan 24, 2023): SEBI directed CDEL to recover entire dues from MACEL and related entities, along with interest, totaling ₹3,357.13 Crores as of June 30, 2026. A penalty of ₹25 Crore under section 15HA and ₹1 Crore under section 15HB was imposed. The company has appealed to SAT, which granted a stay on the penalty. An independent law firm, Crest Law, was appointed, and arbitration proceedings against MACEL have been initiated.
  • Debt and Covenants: The company and certain subsidiaries have outstanding borrowings with instances of covenant breaches and repayment defaults. CDGL has an "in-principle" approval from lenders for a restructuring plan under the RBI's Prudential Framework, pending final execution and RBI approvals.
  • Tax Demands: Subsidiary Coffee Day Trading Limited has not remitted income tax demands totaling ₹149.80 Crores (including interest) for FY 2018-19 and FY 2019-20.
  • Land Advance: Subsidiary Tanglin Developments Limited has an advance of ₹275 Crores for land purchase, which is under legal dispute as the land was acquired by CIDCO.
  • NCLT Case: CDGL has an ongoing case at NCLT filed by the insolvency administrator of its foreign subsidiary, Coffee Day and Kaffeehandels GmbH, for a claim of Euro 328,767.

Subsidiary Information

The consolidated results include numerous subsidiaries, associates, and joint ventures. Auditors were unable to review all entities, relying on management-certified figures for some, and were unable to obtain any financials for 3 joint ventures.

Capital Structure

No change in paid-up equity share capital was reported for the quarter.