CCL Products (India) Ltd (CCL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Ashika Institutional Equities): Ladies and gentlemen, good day, and welcome to the CCL Products India Limited Q2 FY '27 earnings call hosted by Ashika Institutional Equities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Deepak Saha from Ashika Institutional Equities. Thank you, and over to you, sir.
Deepak Saha (Ashika Institutional Equities): Thanks, Iqra. Good morning, everyone. On behalf of Ashika Institutional Equities, it's indeed a great pleasure to host the Q2 FY '27 earnings call of CCL Products Limited. Joining us today to discuss the earnings call for the quarter ended 30th September 2026 are Mr. Praveen Jaipuriar, Chief Executive Officer; Mr. Chaitanya Aditya Raju, Chief Financial Officer; Ms. Sridevi Dasari, Company Secretary and Compliance Officer. We thank the management for giving us the opportunity to host this call. I would now like to hand over the call to Praveen sir for his opening remarks, post which we'll open the floor for Q&A. Thank you, and over to you, Praveen sir.
Praveen Jaipuriar (CCL Products (India) Ltd): Yeah. Thank you, Deepak, and thanks for Ashika Securities team and Iqra for hosting us and this call. Good morning, everyone. I welcome you all to the second conference call of FY '26 '27. Now let me give a brief overview of the company's performance for the second quarter and the half year ended September 30th, 2026. The group has achieved a turnover of ₹1,215.99 crores for the second quarter
Praveen Jaipuriar (CCL Products (India) Ltd): as compared to 1128.21 crores for the corresponding quarter of the previous year, achieving a value growth of 7.8% on the back of a double digit volume growth. The value growth because of green coffee prices coming down, the value growth trails the volume growth, which stands at double digit. The EBITDA stands at 217.3 crores as against 198.6 crores which is a growth of 9.5%, while the profit before tax is 150.86 crores, growing at 18.7% and the net profit stands at Rs 130 crores with a growth of almost 29%. As far as H1 is concerned, the group has achieved a turnover of Rs 2419.58 crores as compared to Rs 2186.25 crores, which is a growth of approximately 11.6%. The EBITDA stands at Rs 414 crores as against 360 crores, which is a growth of almost 15%. And the PBT, which is at 279.88 crores is growing at 26.48%. And the net profit, which is at 246.96 crores for the first half is growing at 42%. The domestic business has achieved a gross turnover of 210 crores this quarter. Out of which, the brand sales is approximately 140 crores. The good part is that the growth momentum for the branded business continues and we are growing at 25%, and we look forward to maintain this kind of a growth momentum going forward as well. As far as the green coffee prices are concerned, while it is still fluctuating, but has been range bound in the region of, you know, $3,400 to $3,800 per this thing, per ton. And the Vietnam crop which is slated to come, you know, around November, December time is the time which will decide the future, you know, price trends for coffee. But the good thing is that, you know, even before the crop the prices have held on to these levels, which is a good sign. The order position for Q3 and Q4 looks robust, and we expect to end the year exactly as per the guidance that we have given at the start of the year, which was you know around 15% volume growth, and a similar you know EBITDA growth as well. That is a brief, you know, note from our side. Now, I open the floor for questions.
Moderator (Ashika Institutional Equities): Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shirish Pardeshi from Motilal Oswal Financial Services Limited. Please go ahead.
Shirish Pardeshi (Motilal Oswal Financial Services Limited): Hi, Praveen and team. Good morning. Thank you for the opportunity. Praveen, starting with the volume growth what you have stated, is it significantly higher than 15% or it's in the range of 10 to 15%?
Praveen Jaipuriar (CCL Products (India) Ltd): No, it's in the range of 10 to 15%. And yeah, it's in the range of 10 to 15%.
Shirish Pardeshi (Motilal Oswal Financial Services Limited): Okay. So, one follow-up here. I think we have been seeing coffee prices declining and the customers were also not stocking up. So, is the inventory level I would assume that inventory level would have normalized now. And hence, the order book growth looks very strong at this time because coffee prices might further decline or remain stable.
Praveen Jaipuriar (CCL Products (India) Ltd): So, you know, Shirish, there are two views here. One is that, you know, the good thing was that every time before the crop, the, generally, the coffee prices tend to increase because there is a lack of availability of coffee before the crop. But this time it has, as I was telling you in the opening remark, it has been range bound. So, while it is fluctuating, everyday we see some $50, $100 of ups and downs that happen on a daily basis. But the good thing is that it has not, you know, broken away from the $3,700, $3,800 levels. Now, we are expecting the crop to come by end of November, December. While there are news of, you know, El Nino and, you know, some some pockets floods as well. So, there are conflicting reports that is coming from the market. But the fact that the
Praveen Jaipuriar (CCL Products (India) Ltd): see harvest prices are you know good, we there is an expectation that there could be a further reduction. So, during this time, what happens is that the customers also wait for you know for that direction to evolve by November-December and every year we see that you know November-December is the time we start getting you know more contracts into the order book. So, generally and same is the case when in during June and July when the Brazil crop comes in. So, I think that's how the things are. But as far as we are concerned, as I was telling that our Q3 Q4 order book looks robust and we are well on track to get that you know 15% volume growth for the year. But let's say some you know some additions happen, then we'll keep updating you on that front as well.
Shirish Pardeshi (Motilal Oswal Financial Services Limited): Okay. No, I was just trying to check is there any distortion between FD and spray-dried volume growth?.
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