Dolly Khanna Stock Jumps 13% After Karnataka High Court Grants Interim Relief

Synopsis: Coffee Day Enterprises jumped sharply after the Karnataka High Court intervened in the FEMA case as it directed the ED to pause the January 30 hearing and halt all proceedings until February 23. 

The shares of this leading QSR chain, engaged in the business of Coffee and related businesses, Integrated multimodal logistics, Financial services, Leasing of commercial office space, Hospitality services and Investment and other corporate functions are in focus after the Karnataka high court gave a key ruling that saw the stock skyrocket in today’s trade.

As of December 2025, Dolly Khanna holds a 1.72 percent stake in the business, down from a 2.19 percent share in its previous quarter. However, she increased her stake from 1.55 percent in June 2025.

With a market capitalisation of Rs 692 crore, the shares of Coffee Day Enterprises Ltd made a day high of Rs 35.13 per share, up nearly 13 percent from its day’s low price of Rs 31.21 per share. Over the past five years, the stock has corrected by over 13 per cent, as compared to NIFTY 50’s positive return of 75 per cent.

About the announcement 

The Karnataka High Court just gave Café Coffee Day (CCD) some breathing space as the court directed the Enforcement Directorate (ED) to pause its proceedings against Malavika Hegde (CEO) and the company and to postpone a personal hearing that was set for January 30, 2026. In short, nothing will proceed until the court hears CCD’s arguments on February 23, 2026. It’s like the court hit the pause button for CCD.

Just a few days earlier, on January 19, the same court stepped in for CCD’s CEO, Malavika Hegde, and halted the Foreign Exchange Management Act, 1999 (FEMA) proceedings against her at least until the next hearing. So now, both the company and its CEO have a breathing space for some time, and their cases are due for that February date.

Incident History

All of this stems back from a case under FEMA, the law in India that governs foreign investments and money. The ED’s case goes back to the foreign direct investment (FDI) that Coffee Day Enterprises Ltd received in 2010. The ED alleges that they violated FEMA rules in how the money was used, particularly regarding the purchase of shares in Indian companies. 

But CCD’s lawyers argued that, before being summoned for a personal hearing, the authorities should have properly explained why they were under investigation in the first place. According to CCD, that did not happen. They also noted that the incidents in question date all the way back to 2010, and that dragging things out this long is unfair. Now it’s the ED’s turn to reply, and the next major date is February 23, 2026.

Financial and other highlights

Coffee Day Enterprises reported a revenue from operations of Rs 280 crore in Q2 FY26, a growth of 4 percent as compared to Rs 269 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew slightly by 4 percent from Rs 269 crore.

Regarding its profitability, it reported a net loss of Rs 16 crore in Q2 FY26, which widened compared to a loss of Rs 4 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined significantly from a profit of Rs 23 crore. 

Coffee Day Enterprises Limited, along with its subsidiaries, operates Café Coffee Day outlets not just in India but also overseas. The company’s business is divided into three main segments: Coffee and Related Business, Hospitality Services, and Others. They also run Coffee Day Square, which is a premium café experience, and Coffee Day Xpress, a convenient kiosk for grabbing food and drinks on the go. Plus, they offer both semi-automatic and automatic vending machines for coffee and other beverages.

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