- Shares of Coffee Day rose for the third day on strong Q4 financial results
- Stock gained 9.99% intraday, trading 5.44% higher by mid-morning on June 2
- Rally linked to Karnataka CM swearing-in; familial ties to Coffee Day founder noted
Shares of Coffee Day continued to rally on Tuesday, June 2, for the third consecutive day on strong financial results. Coffee Day shares advanced 9.99% intraday to Rs 42.07 apiece. The smallcap stock under Rs 50 was trading 5.44% higher by 10:17 am, while the benchmark Nifty 50 was 0.45% down. Two key triggers have driven the winning streak for the stock.
Why Are Coffee Day Stocks Rallying?
Notably, shares also surged ahead of DK Shivakumar's swearing in ceremony as the Chief Minister of Karnataka on June 3 after resignation of Siddaramaiah last week. The soon to be CM's daughter, Aishwarya Shivakumar is married to the son of late Cafe Coffee Day founder VG Siddhartha, Amartya Hegde. At present his mother, Malavika Hegde is the CEO of Coffee Day.
According to Avinnash Gorakshakar, Head of Research at Avinashmentor Research Services, "The rally was primarily driven by its parent firm's stellar financial results. Coffee Day Enterprises reported a net profit of ₹132 crore for Q4, marking a sharp recovery from the previous year's losses, aided by legacy loan settlements and growing vending machine footprints."
Coffee Day on May 27 reported profit attribuatble to owners of Rs 132 crore in the fourth quarter of fiscal 2025-26 against Rs 33 crore loss in the corresponding period last year. Revenue jumped 4.8% to Rs 281 crore in Q4FY26 from Rs 268 crore in the same quarter previous year. In terms of operations, EBITDA stood at Rs 69 crore in the quarter under review against Rs 41 crore in Q4FY25.
Following Coffee Day Q4 results, Coffee Day Global reported net profit of Rs 14 crore in FY26, while its topline (revenue from operations) grew 5.7% to Rs 1,094 crore. The coffee giant's operating profit or Ebitda surged 27% to Rs 198 crore in FY26, according to an exchange filing by its parent entity, Coffee Day Enterprises Ltd. Coffee Day Global had reported a net revenue of Rs 1,034.63 crore and a loss after tax of Rs 175.92 crore in FY25. The company's Global Average Sales Per Day (ASPD) witnessed a marginal increase to Rs 21,101 in the financial year ended March 31, 2026, compared with Rs 21,016 in FY25.
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