The National Company Law Appellate Tribunal (NCLAT) has set aside insolvency proceedings against Coffee Day Enterprises.
The company, which runs CCD chains, in an exchange filing, said that the NCLAT allowed its appeal and set said last year’s National Company Law Tribunal (NCLT) order initiating the insolvency proceedings.
In August 2024, NCLT ordered insolvency proceedings against the company following a petition filed by its creditor IDBI Trusteeship Services Limited over an alleged non-payment of dues of Rs 228 crore.
Subsequently, Malavika Hegde, a shareholder and director in the company, appealed against the order before NCLAT and got a stay order on August 14, 2024. Later, IDBI Trusteeship approached the Supreme Court, which directed the NCLAT to dispose of the pending appeal in February 2025.
Since the appeal was not disposed of until 21 February, the NCLAT’s stay order was vacated and the insolvency process against the company resumed again, in accordance with SC’s order.
Coffee Day Enterprises Limited reported a loss of Rs 11.46 crore in Q3 FY25 compared to a profit of Rs 75.63 crore in the same duration in FY24.
The revenue from operations increased by 9.14 percent to Rs 280.41 crore in the third quarter of FY25 YoY.
According to the company, the coffee and related business reported a revenue of Rs 267.78 crore versus Rs 245.06 crore in Q3 FY24. The hospitality services’ revenue stood at Rs 13.75 crore in Q3 FY25.
In the nine-month period, the company’s coffee business reported revenue from the coffee business to Rs 774.92 crore in Q3, up 6.76 percent.
The company’s average sales per day stood at Rs 21,702 and the outlet count decreased to 439 in Q3 FY25 compared to 454 in Q3 FY24.
In the nine-month period, CCD’s losses expanded to Rs 29.04 crore in Q3 FY25 versus Rs 11.02 crore in Q3 FY24.
At present, Coffee Day Enterprises holds a market capitalization of Rs 659.11 crore.