Target: ₹1,101
CMP: ₹1,025.80
CCL Products (India) is the world’s largest private label coffee processing company engaged in the production, trading and distribution of coffee products. The company, in addition to India, has operations in Vietnam and Switzerland. Vietnam is the second-largest green coffee manufacturing country after Brazil. CCL exports its products to more than 90 countries.
CCL manufactures over 200 blends in coffee. It enjoys cost efficiency due to scale and strategic presence. Vietnam is one of the largest producers of Robusta coffee and hence, there is an assured supply of raw materials. The company’s unit enjoys lifetime zero-tax status. Since the plant is located in Vietnam’s Daklak province which is stated as ‘Robusta Capital of the world’, the company benefits from perennial availability, low inventory requirements and lower logistics costs. Vietnam also provides a gateway to some of the critical markets like China, Japan, Korea, etc.
The company has added significant capacities in its India and Vietnam facilities from 38,500 million tonnes (mt) in FY22 to about 77,000 mt as of September 2025. No major capex is expected in FY26 and FY27. CCL’s existing plants are running at close to 100 per cent utilisation levels while the newly-added capacities are currently running at 15-20 per cent utilisation. Blended utilisation in Q2FY26 was 65-70 per cent. Ramp-up of new capacities is expected to be gradual, utilising about 30 per cent more each year, over the next three-four years.
CCL reported strong numbers in Q2FY26 with Revenue/EBITDA/PAT growing about 53 per cent/44 per cent/36 per cent to ₹1,127 crore/₹197 crore/₹101 crore, respectively.