Is India’s Café Coffee Day (CCD) still in debt?
- Ridhi Jain
- 1d
- 3 min read
India’s Café Coffee Day has remained in the public and investor spotlight since 2019, when the company disclosed the extent of its financial pressure. Once seen as a pioneer of café culture in India, the brand has been known to reshape its balance sheet and operations over the past few years.
While significant steps have been achieved, the question is whether the company has completely cleared out of its debt burden or still working in an unresolved dilemma.
A financial crisis that altered the Café Coffee Day’s trajectory
The history of the debt issue dates back to the year 2019, after the demise of the founder, V.G. Siddhartha. Later disclosures revealed that the company had liabilities of ₹7,000+ crore. This discovery significantly changed the company's path, and it was no longer about growth and expansion but about survival. The creditors wanted clarity, and the business went into a long period of reorganization and review.
Leadership reset focused on survival and stability
After the crisis, the company was left to Malavika Hegde, who took the company through a challenging transition period. The new strategy focused on stability, accountability, and communication with lenders. Instead of focusing on aggressive expansion, the management focused on the need to sustain the business of the cafe and the continuity of operations across sites.
How asset monetization helped shrink a towering debt load
A key component of the recovery plan involved selling non-core assets to generate funds and reduce liabilities. Over time, the company exited several real estate and infrastructure investments that were not directly linked to its café operations.
These steps played a significant role in easing financial pressure. These measures contributed largely to alleviate financial strain. Publicly available figures indicate that over ₹6,500 crore has been covered since the crisis hit its peak, which is a significant decrease in the total liabilities.
Defaults reported in 2025 highlight ongoing challenges
Despite visible progress, the company is still not over with its financial troubles. The regulatory disclosures have reported a total default of about ₹425.38 crore as of March 31, 2025. These figures show that not all the repayment commitments are fulfilled. Although the magnitude of default is significantly smaller than the original debt exposure, it is an indication that recovery is not yet a culminated process.
Operational performance shows signs of stabilization
From an operational standpoint, Café Coffee Day has managed to keep its brand relevant in this competitive market. Store rationalization, cost controls, and a sharper focus on profitability have supported stability. The café network has become more streamlined, and day-to-day operations appear more disciplined compared to earlier years. This operational steadiness has been crucial in sustaining the business during financial restructuring.
What the current debt position signals for the future of CCD
The current financial status indicates a firm that has moved away from immediate crisis but remains cautious. Continued interaction with lenders, careful cash flow management, and limited capital allocation are most likely to characterize the next stage. The situation is perceived by analysts as a slow recovery, and not a turn around that has been accomplished, and the long-term results will be based on achieving this aspect through consistency.
Café Coffee Day has made meaningful progress in reducing its heavy debt burden and stabilizing operations since 2019. However, disclosures in 2025 confirm that liabilities still exist and require careful management. The company’s journey today represents recovery in progress, marked by discipline and measured optimism, rather than a full financial reset.
