Vintage Coffee & Beverages Ltd: Riding India’s Coffee Boom
This is not a consumer brand like Nescafé that you see on TV ads every day. Vintage Coffee works more in the background, but the numbers clearly show that something strong is happening in the business.
In this blog, I want to talk about a company from the coffee sector that has quietly started delivering exceptional numbers — Vintage Coffee & Beverages Ltd.
What does Vintage Coffee do?
Vintage Coffee & Beverages Ltd was incorporated in 1980 and is based out of Secunderabad, Telangana.
The business is very straightforward:
They buy raw green coffee beans
Roast and process them
Convert them into instant coffee powder or granules
Pack and sell them in India and export globally
They mainly deal in:
Spray-dried instant coffee
Agglomerated instant coffee (higher-quality, better margins)
Instant chicory and coffee-chicory blends
Private-label manufacturing (making coffee for other brands under their name)
In short:
Raw coffee → processed instant coffee → packaged → sold/exported
Coffee sector estimates
The coffee market in India is growing steadily, driven by rising disposable incomes, changing lifestyles and a growing café culture. According to industry reports, the India coffee market is expected to grow at about 7–9% CAGR over the next few years, with both domestic consumption and instant coffee demand rising.
The instant coffee segment alone is projected to expand significantly — from roughly USD 3.45 billion in 2024 to over USD 5.3–5.4 billion by 2030, growing at a CAGR close to 7–8%
Product range
Vintage Coffee & Beverages Ltd offers a focused range of coffee products, mainly in the instant and blended segment:
✔ Spray-dried instant coffee – basic instant coffee powder
✔ Agglomerated instant coffee – a higher-quality, better-soluble instant coffee with improved taste
✔ Instant chicory – pure chicory powder used as a coffee additive or standalone drink
✔ Coffee-chicory blends – blended products combining coffee & chicory in different ratios
✔ Private-label manufacturing – producing instant coffee products for other brands
One more interesting development is that Vintage Coffee & Beverages Ltd has also started experimenting on the consumer-facing side. The company recently opened a premium café/lounge, and with the winter season setting in, coffee consumption usually picks up. Winter is typically a strong period for hot beverages, and opening such outlets during this phase helps the brand connect directly with consumers, understand preferences, and build visibility beyond B2B exports.
Capacity & expansion
Now that we’ve discussed what Vintage Coffee & Beverages Ltd does, its product range, and how the overall coffee market is expected to grow, let’s talk about capacity, which is a very important part of this story.
As of now, Vintage Coffee is operating at almost 100% capacity utilisation, with an existing capacity of around 6,500 metric tonnes. This clearly shows that demand is very strong and the company is fully utilising whatever capacity it has.
To support future growth, the company has already started a brownfield expansion of 4,500 metric tonnes, which is expected to come on stream by end of FY26. In addition to this, the company has also planned a greenfield expansion of 5,000 metric tonnes in the coming years.
If we look at this together, it is very clear that Vintage Coffee wants to almost double its overall capacity, which shows management confidence and strong demand visibility.
However, one thing to keep in mind is that since the company is already operating at 100% utilisation, there could be some growth limitations in the near term, especially in Q3 or Q4, simply because the company cannot produce more until new capacity comes online. This is a temporary constraint and not a structural problem.
Financials
The financial performance of Vintage Coffee & Beverages Ltd is very strong. The company has been growing consistently for the last two years and is currently reporting 90–100% growth, along with clear operating leverage.
In Q2 FY26, revenue grew to around ₹136 crore, ₹36 crore, translating into about 90% YoY growth. PAT also more than doubled to around ₹18 crore, compared to ₹8 crore last year, showing strong margin expansion.
Overall, the numbers clearly indicate healthy growth, improving profitability, and no major financial red flags.
MANAGEMENT COMMENTARY
The management of Vintage Coffee & Beverages Ltd is also very bullish about the upcoming quarters — in fact, they are more confident than I am, and rightly so. They are running the business; I’m just an outsider tracking it. All I can do is listen to what the management says and verify it through numbers.
According to management, Q3 and Q4 are expected to be much better than Q1 and Q2. However, there is still a small confusion because the company is already operating at 100% capacity utilisation. For Q3 and Q4 to outperform further, only one thing can realistically happen — the new 4,500-metric-ton capacity must come online earlier than expected. The company has guided that this capacity will be completed by end of FY26, but if production has already started or ramps up faster, then we could see another strong quarter even at full utilisation.
This is something to closely track in the next results, because execution here will decide how strong the next leg of growth really is.
VALUATIONS
Vintage Coffee is growing at a very fast pace, and as we know, the company is currently operating at 100% capacity utilisation. Because of this, there could be a slight slowdown in growth in the near quarters, but we need to see how the market reacts to it. That said, a sharp fall looks unlikely, given the strong demand and execution.
From a valuation point of view, even if I take a conservative assumption of 65–70% growth for the full year, the company can still do around ₹500–530 crore of revenue. Assuming just a 13% PAT margin, this translates into a PAT of roughly ₹66–70 crore.
On a ₹70 crore PAT, Vintage Coffee & Beverages Ltd would be trading at a P/E of around 33. Paying 33 times earnings for a 60% growth business gives a PEG of ~0.55, which is clearly undervalued in my view.
When we compare this with CCL Products (India) Ltd, which has a market cap of around ₹10,000 crore and is growing at ~50%, Vintage Coffee looks even more attractive. Vintage is much smaller, growing faster, and is also showing operating leverage.
In this scenario, Vintage Coffee clearly stands out. If growth and margins sustain, EPS growth + low P/E can lead to a re-rating, which may result in a strong up-move in the stock price over time.
If this plays out well — meaning capacity expansion comes earlier and growth continues as guided — then the intrinsic value of Vintage Coffee & Beverages Ltd could comfortably move towards the ₹370–₹400 range, based purely on earnings growth and possible re-rating.
MANAGEMENT
I personally trust the management of Vintage Coffee & Beverages Ltd. The leadership team is highly experienced, and Balakrishna Tati has spent decades in the coffee industry. He played a key role during his time at Tata Coffee, working very closely across the coffee value chain, before moving on to build Vintage Coffee on his own.
With this level of experience and deep industry understanding, I believe the management is skilled, capable, and execution-focused. That gives me confidence that they can take the company to the next level of scale over the coming years.
Technical view:
Despite a weak and choppy overall market, Vintage Coffee & Beverages Ltd is showing strong relative strength. On the weekly chart, the stock is forming a healthy base and is holding above the 10-EMA, which keeps the technical structure positive.
Closing notes
To wrap up my analysis on Vintage Coffee & Beverages Ltd, I remain very bullish on the coffee sector overall and on this stock in particular. It combines strong fundamentals with a solid technical structure, and even in weak or choppy markets, the stock has not corrected meaningfully, which itself shows strength.
I’ll continue to track it very closely. If execution and sector tailwinds play out well, this has the potential to become a strong multi-bagger over time.
These are my personal views for learning and discussion purposes only. This is not a buy or sell recommendation. Please consult your financial advisor before making any investment decision.