Synopsis: A small-cap company’s shares rose over 13 percent in today’s trading session after reporting net profit growth of 40 percent.

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A small-cap company that engaged in the production, trading and distribution of Coffee, is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.

With a market capitalization of Rs. 13,135.81 crore, the shares of CCL Products (India) Limited were trading at Rs. 983.85, up by 10.71 percent from its previous closing price of Rs. 888.65. In today’s trading session it has touched an intraday high of Rs. 1,004, implying an upside of 13 percent from previous close price.

Q2FY26 Results

CCL Products (India) Limited reported Rs. 1,126.73 crore in revenue for the second quarter of FY26, a 52.6 percent increase over the Rs. 738.20 crore for the same period in FY25. It increased by 6.7 percent as compared to Rs. 1,055.64 crore in Q1 FY26.

The company’s EBITDA for Q2 FY26 stood at Rs. 197.13 crore, up by 23.9 percent from Rs. 159.03 crore in Q1 FY26, and rose by 44 percent from Rs. 137.07 crore in Q2 FY25.

The consolidated net profit for the second quarter of FY26 was Rs. 100.86 crore, which was 39.3 percent higher than the Rs. 72.45 crore reported in the previous quarter and increased by 36.4 percent from Rs. 73.95 crore in Q2 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 7.57 in Q2 FY26 from Rs. 5.44 in Q1 FY26 and Rs. 5.55 in Q2 FY25. 

Acquisition

CCL Products (India) Ltd has decided to acquire a 26 percent stake in Mukkonda Renewables Pvt. Ltd., a renewable energy company promoted by Ecoren Energy India Pvt. Ltd. The stake will be jointly held by CCL Products (20.54 percent) and its subsidiary CCL Food & Beverages (5.46 percent) for a total of Rs. 12.12 crore. This investment will help the company access 10 MW of renewable wind and solar power for its own use, reducing energy costs and supporting sustainability goals. The deal will be completed in three stages through cash investment once key agreements are signed.

About the company

CCL Products (India) Limited, founded in 1961 and based in Hyderabad, manufactures and sells a variety of instant coffee and related products, including filter, premix, instant, flavored, and freeze-dried coffee. The company markets its products under the Continental brand and also exports them globally.

A return on equity (ROE) of about 17 percent, a return on capital employed (ROCE) of about 13.1 percent and debt to equity ratio at 0.78 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 39.1x which is higher as compared to its industry P/E 23.8x.  

Shareholding Pattern

As of September 2025, the company’s shareholding pattern shows that promoters hold 46.11 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 10.52 percent, while Domestic Institutional Investors (DIIs) own 21.83 percent. The public shareholding stands at 21.29 percent and other stands at 0.25 percent, reflecting a healthy level of retail and institutional participation in the company.

Conclusion

CCL Products (India) Ltd’s 13% surge in stock price is primarily driven by strong financial performance in Q2FY26, marked by significant growth in revenue and profit. The company’s decision to acquire a stake in Mukkonda Renewables also signals strategic moves towards sustainability, further boosting investor confidence.

Written By Akshay Sanghavi

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