Coffee Day Enterprises stock jumps upto 11% after Axis bank agrees for settlement with ₹70 Cr

Synopsis: Coffee Day Enterprises has informed stock exchanges that Axis Bank has approved a Rs. 70 crore one-time settlement of its outstanding loan, to be paid in instalments till September 2026, and other debts are being reduced in the same way.

The shares of this small-cap company majorly engaged in retail operations from the sale of coffee beans and other related products and services in respect of coffee vending machines, jumped upto 11 percent after Axis bank agreeing for OTS for its debts. 

With the market capitalization  of Rs. 771 Crores, the shares of Coffee Day Enterprises has reached an intraday high of Rs. 38.98 per share, rising nearly 11 percent from its previous day close of Rs. 35.3 per share. 

What is the News:  

Coffee Day Enterprises Ltd informed stock exchanges that Axis Bank has approved a One-Time Settlement (OTS) of the company’s outstanding loan. As per the disclosure, the total settlement amount is Rs. 70 crore, which will be paid in instalments Rs.35 crore by December 31, 2025, followed by payments of Rs. 15 crore by March 2026, Rs. 10 crore by June 2026 and Rs. 10 crore by September 2026. 

The company stated that the settlement has been undertaken to reduce its debt liability, and once the agreed amount is paid, it will be treated as a full and final settlement of all dues related to the loan.

Along with this, the subsidiary firm Coffee Day Global Limited and Rare Asset Reconstruction Company Limited, approved for a one-time settlement of Rs. 40 Crores payable in two tranches for outstanding loans assigned by Karnataka Bank Limited, RBL Bank Ltd and Kotak Mahindra Bank Limited.

Here, Rs. 25 Crores are payable immediately upon acceptance of the OTS, proposed to be funded through the sale of mortgaged land and the remaining Rs. 15 Crores are payable within one Year from the acceptance of the OTS

About the Company and Financials: 

Coffee Day Enterprises is popularly known as parent company of cafe Coffee Day which is primarily into operating and managing a network of coffee cafes across India under the brand Café Coffee Day. 

Coffee Day Enterprises has been under severe financial strain, struggling with a large pile of debt built up over the years, the company’s borrowing level has significantly reduced from Rs. ~7214 Crores in 2019 to Rs. less than 1373  crores in FY25 and further reducing it to Rs. 1,145 Crores in Q2FY26.

Year on Year analysis: Revenue from operations has increased from Rs. 269 Crores to Rs. 280 Crores, up 4 percent. Operating profit has increased from Rs. 24 Crores to 32 Crores, up 33 percent and net loss has increased from Rs. -4 Crores to -16 Crores.

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 269 Crores to Rs. 280 Crores, up 4 percent whereas operating profit has stayed the same at Rs. 32 Crores and net profit has decreased from Rs. 23 Crores to Rs. -16 Crores.

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