Here’s how Vintage Coffee could be your next multibagger stock; Strong fundamentals, High exports and more

Synopsis: A smallcap manufacturer and exporter of instant coffee and chicory saw 88 percent of its revenue from exports, and has also been expanding its coffee capacity line, which even includes a large greenfield freeze-dried coffee plant and an ongoing outlook.

An emerging FMCG company saw its latest result witness an 88 percent YoY revenue growth and a 125 percent YoY net profit growth, while generating 88 percent of the total from exports without even entering the large markets like the USA and others. 

This article is going to break down the company’s fundamentals to determine if it could emerge as a multibagger in the coming years. With a market cap of Rs 2,113 Cr Vintage Coffee & Beverages Ltd stock currently trades at Rs 156, which is 1.8 percent lower than the previous close of Rs 159. But the stock has given a 5 year compounded return of 74 percent.

Future Outlook

The latest guidance also states that the company wants to be within a production facility of around 20,000 metric tons in the next 3 to 4 years, and expect a revenue of Rs 2000 Cr over 3-4 years as they expect the sales to pick up from Q2 of the fiscal year. 

The current capacity stands at around 6500mt/yr for Spray Dried & Agglomerated Instant Coffee, 1700 mt/yr for instant chicory and 3000mt/yr for packing. The company is entering a major expansion phase, with an additional 4,500 MTPA coffee capacity line expected to begin production by the end of FY2025-26.

The company has also issued purchase orders for machinery to set up its large greenfield freeze-dried coffee plant, which will add another 5,000 MTPA of high-margin capacity, and this greenfield expansion is estimated around Rs 450 Cr, for which the company is also planning to raise external funds despite having Rs 150 Cr cash on books, while out of this Rs 40 – 45 Cr is going to go for Brownfield Expansion. 

This expansion comes at a time when exports already have been dominating, with Rs 119.69 crore being generated through exports out of Q2FY26 Rs 136 cr revenue, driven by strong international demand across countries in South East Asia, Europe, Africa and even in Russia and CISs.

Notably, the company has not yet entered the US market, which is the world’s largest coffee consumer, and is also planning to expand into New Zealand and Australia, signalling significant untapped global growth potential.

Financial Performance and Breakdown

In Q2FY26, the company had its revenue at Rs 136 Cr, that is 33 percent higher than Q1FY26’s Rs 102 Cr, and 88 percent higher than Q2FY25’s Rs 72 Cr. The Net profits grew by 28 percent, from Rs 14 Cr in Q1FY26 to Rs 18 Cr in Q2FY26, and saw a 125 percent profit growth from Q2FY25’s Rs 8 Cr. 

Coming to geographical sales mix, with middle east & africa dominating the mix with 30.67 percent, followed by Russia & CIS 27.41 percent, South East Asia 16.12 percent, Domestic at 11.74 percent and Europe and others at 14.06 percent.

Moreover, In the last one year the company had a ROE of 17 percent, ROCE at 15 percent. And has also managed to reduce its Cash Conversion Cycle from 370 days to 206 days. 

Another highlight here is that since the start of this fiscal year FII and DII have shown a significant increase in interest, as the FII that were holding on 3.36 percent in March of 2025 have increased their stake to 5.28 percent in September 2025. A similar pattern can be noticed with the DIIs as well, with their stake going up from 1.86 percent in March 2025 to 6.26 percent in September 2025.

The Bottom Line

Vintage Coffee & Beverages Ltd is well-positioned for strong long-term growth, backed by ambitious revenue guidance and improving operational efficiency. The company has outlined a target of Rs 2,000 crore in revenue in the coming years, while already delivering an impressive 104 percent sales CAGR over the past three years, without even entering the world’s largest consumer market for its core coffee business, thereby providing future growth visibility followed by penetration.

In addition, Vintage Coffee & Beverages has significantly strengthened its working-capital management by reducing its cash conversion cycle by 164 days, also growing FII and DII participation signifies a notable increase in institutional stakes and rising investor confidence in the company’s growth prospects.

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