CCL Products Q2 earnings: CEO Jaipuriar on impact of GST rejig as stock hits record high

Coffee maker CCL Products (India) shares are amid a bull run after the firm announced its Q2 earnings on November 5. The company's CEO Praveen Jaipuriar in an interaction with Business Today decoded the stellar Q2 earnings, which took the stock to two successive record highs on November 6 and November 7, respectively. 

Jaipuriar attributed good volume growth this year and capacity addition especially on the freeze-dried front to the recent earnings show. The growth in the domestic business also contributed to the earnings momentum in Q2.

Jaipuriar also mentioned that product mix led to better profits due to freeze-dried, which was commercialized in the last quarter. 

"Sales have started happening from the freeze-dried plant in Vietnam as well and freeze-dried is a higher margin product. So, that led to better margins as well," he said. 

On the impact of GST rationalisation on the supply side, Jaipuriar said the company did see some supply chain disruptions because the traders and the retailers were a little wary of buying the old stock and therefore they delayed the purchases. That led to certain sales impact towards the end of the quarter or end of the month.

On the demand side, Jaipuriar said they have not seen any impact because FMCG products and especially coffee are regular consumption products. 

"We are hoping that the change will be a little more in the long term because it would not be a direct impact. The indirect impact would be that the consumers will have a little more money to spend, little more disposable income to spend on these products. And hopefully in the long run, there will be a sentiment change and the product categories," Jaipuriar said. 

Meanwhile, the company reported a 36.4% rise in consolidated net profit to Rs 100.86 crore. Revenue rose 52.6% to Rs 1,126.73 crore in Q2FY26 compared with Q2FY25. Total operating expenditure rose 54.6% YoY to Rs 929.60 crore.

Profit before tax in Q2 FY26 rose 45.6% to Rs 127.09 crore from Rs 87.31 crore in Q2 FY25.

CCL Products shares hit a record high of Rs 1033.20, rising 6.27% today against the previous close of Rs 972.15. Market cap of the firm stood at Rs 13,710 crore. Later, the stock ended 5.58% higher at Rs 1026.40, the first ever close for the stock above the Rs 1,000 mark. In the previous session too, the CCL Products stock hit an intra day high of Rs 1004. 

CCL Products specialises in the production, trading, and distribution of coffee and coffee-related products. It caters to a diverse range of customers, including brand owners, retailers, manufacturers, traders, repackers, and others.