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Informist, Monday, Jul. 27, 2026

By Utthara ES

MUMBAI – CCL Products (India) Ltd. is expected to report a sharp increase in net profit and revenue for the June quarter, driven by growth in volume, according to brokerages tracking the company. The growth comes on the back of sustained demand, an extended summer, a recovery in discretionary spending, and price hikes by most FMCG companies.

The company is expected to report a consolidated net profit of INR 1.07 billion for the June quarter, up 48% from INR 724.5 million in the year-ago quarter, according to the average of estimates from five brokerages. The company's consolidated net profit is likely to fall 7% from INR 1.15 billion in the March quarter. The highest net profit estimate for the company is INR 1.19 billion from Axis Securities Ltd., and the lowest is INR 1 billion from IDBI Capital Market Services Ltd.

The company's consolidated net sales are expected to increase over 16% to INR 12.30 billion for the June quarter from INR 10.56 billion in the year-ago quarter, according to the estimates. The company had reported consolidated net sales of INR 12.2 billion for the March quarter. The highest net sales estimate is INR 13.7 billion from Axis Securities and the lowest is INR 10.4 billion from IDBI Capital.

CCL Products' revenue growth will be driven by 15% on-year volume growth, up from 10% in the year-ago quarter, according to brokerages. The company is expected to outperform within the fast-moving consumer goods sector, supported by resilient demand, efficient distribution networks and cost management, the brokerages added.

During the June quarter, the coffee crop in Vietnam was good, while the harvest in Brazil started slow but gained pace in mid-May, Systematix said. Long-term client contracts are also coming back, it said.

The fast-moving consumer goods sector is expected to have seen encouraging demand momentum during the June quarter, according to Axis Securities. However, the operating environment is expected to be impacted by the rise in crude-linked input costs. Many companies in the sector implemented price hikes, grammage changes, cost optimisation, and supply chain efficiencies to minimise the impact of the war in West Asia, the brokerage said.

The company is expected to report earnings before interest, tax, depreciation, and amortisation of INR 1.94 billion in the June quarter, up 16% from INR 1.67 billion in the year-ago quarter, according to the average of four estimates. The company's EBITDA is expected to slightly rise from INR 1.93 billion in the March quarter. The highest EBITDA estimate is INR 2.02 billion from Axis and the lowest is INR 1.79 billion from IDBI.

The company's EBITDA margin is expected to be in the range of 14.7-17.2%  for the June quarter, up from 15.1% in the year-ago quarter, according to the average of five estimates. The highest estimate for the EBITDA margin is 17.2% from IDBI and the lowest is 14.7% from Axis.

The company's gross margin is expected to expand to 35.1% due to easing of coffee prices over the past five-six months, Nuvama said. The sector's margin performance is likely to be mixed due to price hikes in palm oil and crude-linked raw materials, as well as advertising spend, according to brokerages. The company is expected to post realisation growth of 2%, Systematix said.

CCL Products (India), primarily a business-to-business company, is a private-label manufacturer and exporter of instant coffee. In 2016, the company launched its Indian retail brand called Continental Coffee.

Investors will track the management's comments on updates on debt repayment, outlook on global coffee crop harvest, contribution of business-to-consumer coffee segment, global operations, and capex plans.

CCL Products will announce its June quarter earnings Monday. At 1130 IST, its shares were at INR 1188.20 on the National Stock Exchange, slightly up from Friday. The shares are up nearly 6% since the company announced its March quarter earnings on May 7.

Of the five research reports on the company available with Informist, two have a 'buy' recommendation on the stock with an average target price of INR 1,360, 14% higher than the current market price. Three brokerages have a 'hold' recommendation on the stock with an average target price of INR 1,178.

Following are the June quarter earnings estimates for CCL Products (India) Ltd. from five brokerages in descending order of the estimates of net profit, in INR billion:

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IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Himanshi Gupta

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