Vintage Coffee and Beverages Limited Q1 FY27 Earnings Conference Call Summary

Call Date: August 03, 2026

Financial Performance Highlights (Q1 FY27)

  • Revenue: INR 161 crores, representing 58.4% YoY growth (vs. INR 101.6 crores in Q1 FY26)
  • EBITDA: INR 31.6 crores, representing 75.2% YoY growth (vs. INR 18 crores in Q1 FY26)
  • Profit After Tax (PAT): INR 20.8 crores, representing 46.1% YoY growth (vs. INR 14.2 crores in Q1 FY26)
  • PAT Margin: 12.9%
  • Sales Volume: 1,856 metric tons
  • Production Volume: 2,402 metric tons
  • EBITDA per kg: Approximately INR 157-160 (after adjusting for chicory contribution)

Operational and Capacity Updates

  • Capacity Expansion: Total installed capacity increased to 11,000 metric tons (from 6,500 MT previously), representing a 69% increase
  • Expansion Funding: Entire capacity expansion funded through internal accruals
  • Capacity Utilization: 100% utilization in Q1 FY27 (excluding 15 days annual maintenance)
  • Freeze-Dried Coffee Expansion: 5,500 metric tons capacity under development with:
  • Land secured from Telangana Government under Food Processing Zone
  • Substantial advance payments made to equipment suppliers
  • Construction operations commenced
  • Target production start: Q2 FY28 (June 2027 trials, production from Q2 FY28)
  • Expected capacity utilization in FY28: 60-65% of installed capacity

Subsidiary Merger Update

  • National Company Law Tribunal (NCLT) approved amalgamation of wholly-owned subsidiaries (Vintage Coffee Private Limited and Delecto Foods Private Limited) with Vintage Coffee and Beverages Limited
  • Effective Date: July 21, 2026
  • Rationale: Optimize manufacturing facilities, equipment, and human resources; improve operational efficiency; reduce administrative costs; achieve economies of scale

Delecto Foods (Chicory Business) Details

  • Capacity: 2,000 metric tons per annum
  • Annual Revenue: INR 42-45 crores
  • Profitability: Consistently profitable
  • Product: Chicory and chicory-mix products
  • Markets: Domestic and international
  • Current Market Condition: Acute shortage of chicory leading to price increases

Market Outlook and Business Environment

  • Coffee Prices: Stable at INR 3,500-3,800 per metric ton; expected to remain broadly stable in current year
  • Supply Factors: Brazil expecting healthy crop (positive for supply); weather-related risks could affect production
  • Logistics Impact: Geopolitical tensions in Middle East caused modest increase in transit times and higher LPG/diesel prices, but overall impact negligible due to limited exposure to Middle East market
  • Situation Status: Considerably stabilized

Geographical Revenue Mix

  • West Africa: 30%
  • Russia/CIS: 22%
  • Southeast Asia: 20%
  • Central America: 15%
  • Europe: 10%
  • India: 5%

Customer and Business Model Details

  • Customer Type: 90% direct to brand owners, 10% to traders
  • Pricing Mechanism: Cost-plus margin model with quarterly price reviews
  • Volume Commitment: Customers provide annual volume commitments with quarterly price fixation
  • Customer Retention: Approximately 98%
  • Product Development: Internal R&D develops exclusive blends for each customer

Freeze-Dried Coffee Business Update

  • Market Size: Approximately 250,000 metric tons globally
  • Company Share: 5,500 MT represents ~2.2% of global market
  • Volume Commitments: 70-80% of freeze-dried capacity covered by Letters of Intent (LOIs)
  • Customer Mix: 5 existing customers, 2 new customers
  • Target Geographies: Russia, Europe, US, Southeast Asia
  • EBITDA Premium: Freeze-dried coffee expected to have 28-32% higher EBITDA per kg compared to spray-dried coffee
  • Packaging Mix Target: 70% bulk, 30% consumer packs (glass jars)

Financial Guidance and Outlook

  • FY27 Revenue Guidance: INR 850-900 crores (based on current price levels)
  • FY27 Volume Guidance: 10,500 metric tons (95% capacity utilization)
  • FY28 Freeze-Dried Volume: 2,300-2,400 metric tons (from new capacity)
  • EBITDA Margin Guidance: Consolidated margins expected to reach 23-24% with freeze-dried capacity
  • Operating Cash Flow: Expected to be positive for FY27
  • Working Capital Days: 120-130 days, expected to maintain at 125 days

Capital Expenditure and Financing

  • Freeze-Dried Project Cost: INR 550 crores
  • Amount Spent Till Date: INR 150 crores (INR 25 crores in Q1 FY27)
  • Debt Plan: INR 400-450 crores peak debt expected for FY28
  • Funding Strategy: Incremental cash flows from FY28 operations to fund phase 2 expansion
  • Equity Dilution: No further equity dilution planned at this time

Product and Raw Material Details

  • Raw Material Mix: 20% imported beans, 80% domestic beans
  • Packaging Capacity: 5,000 metric tons for spray-dried and agglomeration
  • Q1 Packaging Mix: 45% bulk, 55% consumer packs
  • Aluminum Costs: Remain elevated but stable

Management Commentary Highlights

  • The expanded capacity became fully operational in Q1 FY27 and positions the company well to support future demand
  • The company follows a back-to-back procurement strategy where coffee beans are procured against export orders
  • Freeze-dried coffee realization expected to be better than spray-dried coffee
  • The company has a business plan targeting 23-24% consolidated EBITDA margins with freeze-dried operations
  • Customer retention is nearly 98% due to exclusive blend development and quality maintenance