Shares of Indian coffee producer CCL Products (India) Limited fell for a second session after quarterly results showed other expenses rising faster than sales, despite gains in revenue and profit.
For the quarter ended Sept. 30, consolidated revenue from operations rose 7.5% from a year earlier to ₹1,210.76 crore, the company reported. Consolidated profit after tax, including the share of associate profit, increased about 29% to ₹130.11 crore. Other expenses climbed 35.9% to ₹196.71 crore.
Business Standard market data quoted the shares at ₹985.05 on the Bombay Stock Exchange on Oct. 19, down 2.25%. The shares had fallen 7.10% on the National Stock Exchange on Oct. 16.
On an Oct. 16 earnings call, Chief Executive Officer Praveen Jaipuriar said sales volume grew 10% to 15%. Revenue increased more slowly than volume because green coffee prices were lower, he said. CCL reports coffee and related products as one business segment.
Jaipuriar cited higher freight, insurance, fuel and domestic marketing costs, along with greater volume, among the reasons for higher expenses. Customers generally bear increased freight costs when CCL revises prices, he said. The company may have to absorb increases on already agreed cost, insurance and freight (CIF) contracts.
Jaipuriar also said earlier gains from changes in the mix of products sold are now part of the year-earlier comparison. Axis Direct maintained its buy rating in an Oct. 19 research listing, which indicated 25% upside from its stated current market price (CMP).
Demand for freeze-dried coffee is stronger than for spray-dried coffee, Jaipuriar said. He identified the November–December Vietnam crop as an indicator for coffee prices. Jaipuriar expects CCL to decide in the fourth quarter of fiscal 2027 or the first quarter of fiscal 2028 whether to add freeze-dried capacity or arrange a strategic partnership.
