Kolkata: Is Cafe Coffee Day stock finally coming out of the woods? It seems to be the case with investors cheering the cuppa over the past two days, as a result
of which the stock has surged by about 30% in two days flat. The sudden change in mood in the scrip follows the change of chief minister in Karnataka. Over the past few years, investor confidence had waned and the stock remained under constant pressure. The holding company of the retail cafe chain is Coffee Day Enterprises. Once it used to hit the headlines due to a mountain of debt and financial crises. Now after the change of guard, the stock has moved under the spotlight in Dalal Street. Let’s have a look at this stock in some detail.
Shares rally
The stock rallied up to 10% following robust Q4FY26 financial results. The company has moved from losses to profits and has also recorded improvement in operational performance. Today, the shares were trading at Rs 38.25, up Rs 3.47 or 9.98%n around 2:30 om. On May 29, it gained 20% and hit the upper circuit. In the past one week the shares appreciated 53.80% and in the past one month, the shares rose 42.78% according to Groww data. Incidentally, Around 2:30 pm today, BSE Sensex was at 74,294.06, down 0.64% or 481.68 points while Nfity was at 23,398.95, down 0.63% or Rs 148.80.
Connection between Shivakumar and Cafe Coffee Day
The surge in Coffee Day Enterprises shares was the most pronounced on May 29, when the share price hit the 20% upper circuit. That day the word spread that Siddaramaiah might step down as the chief minister of Karnataka and deputy CM D K Shivakumar can replace him. Investors became alert since Shivakumar shares a bond with the family of V G Siddhartha, the founder of the retail chain. Shivakumar’s eldest daughter, Aishwarya, is married to V G Siddhartha’s son, Amartya Hegde. This connection has significantly triggered investor interest.
CCD returns to profits
Coffee Day Enterprises has finally put the days of red ink in its bottomline and posted a net profit of Rs 14 crore for FY26. This is a significant achievement after a net loss of Rs 175.92 crore in FY25. This turnaround has helped investor interest. The company’s income from revenue has risen by 5.7% and touched Rs 1,094 crore from Rs 1,034.63 crore in FY25. Operating profits or EBITDA surged by 27% to reach Rs 198 crore.
This increase in operating profit demonstrates that the company has successfully managed to control its expenses more effectively. Average sales per day also rose — from Rs 21,016 in FY25 to Rs 21,101 in FY26. It shows customers are not deserting the brand. However, there are still challenges. Competition in the segment is very high. Also, the company must continue to invest consistently to maintain a strong brand identity and to attract customers.
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