Challa Srishant, MD of CCL Products, said global coffee price volatility has been driven by Brazil’s 50% export tariff and the end of its harvest season, with Vietnam’s crop only expected in November. This has caused sharp fluctuations, though he expects prices to correct later in the year.Despite the swings, Srishant stated that margins remain unaffected under the company’s cost-plus model, stating, “Our margins are exactly the same… it’s merely a book entry due to tax credits.”He confirmed that the branded business is firmly on track to reach ₹400–500 crore this year, supported by strong demand, while revenue growth of 15–20% and earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 10–20% remain achievable. Capacity has recently doubled, with new facilities currently operating at 30% utilisation, expected to scale up to 70–80% within two to three years.
On the balance sheet, Srishant said long-term debt is about ₹750–800 crore, with the rest being working capital loans, and expects total debt to reduce to ₹1,500–1,600 crore by year-end. Looking ahead, the company is shifting towards premium freeze-dried coffee, which commands around 10% higher margins than spray-dried, while maintaining a balanced portfolio to ensure steady EBITDA per kg and long-term margin stability.Also Read: Third Wave Coffee eyes profitability in FY26, bets on innovation and expansionAndhra Pradesh-based CCL Products (India) has a market capitalisation of about ₹11,972 crore, with its shares gaining nearly 27% over the past year.For the entire interview, watch the accompanying videoCatch all the latest updates from the stock market here
