Shares of multibagger CCL Products fell another 2% in Monday’s intraday trade on 19 October, dropping to ₹983, their lowest level in seven months, as the earnings-led sell-off extended into its second day.
The losses have pushed the stock into negative territory for October, with shares declining 3.4% so far this month and falling 11% from the monthly high. The company reported its September-quarter results on Thursday, with the numbers coming in below Street estimates as weak coffee prices weighed on performance.
The company reported 7.5% year-on-year revenue growth, driven by double-digit volume growth of 10–15%, although lower coffee prices weighed on realizations.
Gross margin expanded by 339 basis points to 37.9%, supported by a favorable FDC mix, while EBITDA grew 7.6%, with margins remaining stable at 17.5%, as higher freight and insurance costs offset gains in gross profit.
Management expects to recover the incremental costs through price revisions. Demand for FDC continues to outpace that for SDC, supported by premiumization and new customer additions. With its 17,000 MT FDC capacity approaching full utilization over the next year, management expects to update its expansion plans by the end of Q4FY27 or early Q1FY28, potentially through a strategic partnership.