CCL Products reports Q4 net profit surge of 57% to Rs.102 crore; company's EBITDA grows 38% year-over-year while expanding Vietnam freeze-dried coffee operations

May 6, 2025 (Mint) –

New Delhi , May 6 -- Multibagger small-cap stock in focus on May 06 : CCL Products (India) , engaged in the production, trading, and distribution of coffee, witnessed a remarkable surge in its share price during Tuesday's trade ( May 6 ), spiking 16% to hit the day's high of Rs.687 apiece after reporting a stellar performance for the March quarter (Q4FY25) on strong revenue growth.

The company, post-market hours on Monday, reported its highest-ever quarterly net profit of Rs.102 crore in Q4FY25. In the same period last year, it had posted a net profit of Rs.65 crore , while in the December quarter, the profit stood at Rs.63 crore .

Revenue from operations during the reporting quarter came in at Rs.836 crore , compared to Rs.727 crore in Q4FY24 and Rs.758 crore in Q3FY25. On the operating front, it delivered strong consolidated EBITDA growth, up 38% YoY to Rs.163 crore in Q4FY25, with EBITDA margins expanding by 400 basis points YoY to 20%.

Despite facing significant challenges-such as rising green coffee prices, intense competition, and supply chain disruptions due to geopolitical issues- CCL Products managed to achieve healthy volume growth and maintain profitability on a per-kilo basis.

According to analysts, the company remains on track with its capacity expansion plans across subsidiaries. These efforts, coupled with a focused strategy to increase the share of premium and value-added products, aim to strengthen its market position.

The newly established Freeze-Dried Coffee (FDC) facility in Vietnam , with a capacity of 30,000 metric tons, is currently operating at 40-50% capacity utilization, showing steady progress toward full-scale operations. Additionally, the company aims to strengthen its presence in key markets, including the UK , US, and other strategic geographies, as part of its global expansion strategy.

Looking ahead, the company expects rising coffee prices may drive a shift in consumer behavior-from out-of-home to in-house consumption-which bodes well for the instant coffee segment. Recent estimates suggest that India's domestic coffee market is growing at a healthy 10-15% YoY.

Meanwhile, the Board of Directors has recommended a final dividend of Rs.5 per equity share of Rs.2 each for the financial year ended March 31, 2025 .

The stock, which was trading at Rs.174 per share in May 2020 , has surged 286% to its current value of Rs.672 . Over the last decade, it has delivered a massive return of 1,244%.

In September, the stock reached a record high of Rs.855 per share. This extraordinary rally is attributed to the company's strong financial performance, supported by increasing demand for its products.

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