Coffee Day Enterprises Ltd (CDEL), the parent company of Café Coffee Day, has taken another meaningful step in its deleveraging journey by finalising a ₹70 crore one-time settlement (OTS) with Axis Bank. The move is aimed at fully resolving all outstanding dues under the existing loan arrangement with the private sector lender.​

Structured Payout Until September 2026

Under the terms of the OTS, Coffee Day Enterprises will clear the ₹70 crore liability through a staggered payment schedule spread across multiple instalments. The company plans to complete the entire payment by September 30, 2026, allowing it to align repayments with internal cash flows and operational requirements.​

Part Of Ongoing Debt Clean-Up

This settlement is part of a broader balance sheet repair exercise undertaken by the company after the death of founder V.G. Siddhartha in 2019, which had exposed significant debt and governance challenges. Over the last few years, CDEL has been focusing on monetising assets, negotiating with lenders, and streamlining operations to bring down its overall debt burden.​

Market Reaction And Investor Sentiment

Following the announcement of the Axis Bank OTS, Coffee Day Enterprises’ stock saw a sharp upside as traders and investors welcomed the clarity on debt resolution. The structured settlement is being interpreted as a positive signal for ongoing recovery efforts and a potential stabilisation of the company’s financial position.​

Why This Development Matters

For lenders, the OTS provides time-bound visibility on recovery while avoiding prolonged uncertainty around stressed exposure. For Coffee Day Enterprises, the deal reduces legacy pressure on the balance sheet and supports management’s efforts to refocus on core operations and long-term value creation.​