Coffee Day Shares Surge 10% as Dolly Khanna Picks Up 1.55% Stake

Investor interest reignites in Café Coffee Day’s parent as marquee investor Dolly Khanna’s entry lifts sentiment amid turnaround hopes.

Shares of Coffee Day Enterprises Ltd surged 10% to hit the upper circuit at ₹37.25 on July 15, after the company’s Q1 FY26 shareholding pattern revealed that veteran investor Dolly Khanna acquired a 1.55% stake in the firm. As per BSE data, Khanna now owns 32.78 lakh shares of the company, fuelling renewed investor confidence in the embattled retail and hospitality player.

Khanna, known for picking high-conviction turnaround bets in the small-cap space, has a cult following among retail traders and her portfolio actions often act as a sentiment trigger. The stock has now gained nearly 57% year-to-date in 2025, adding to its 36% six-month rise, and is up over 6% in the past one month.

• Dolly Khanna stake: 32.78 lakh shares (1.55%)

• Stock price: ₹37.25 (+10%, upper circuit)

• YTD performance: +57% in 2025

• Volume surge: ~30 lakh shares traded vs 10-day avg of 9 lakh

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Legal Relief, Rising Volumes Support Bullish Momentum

The sharp rally follows a favorable NCLAT verdict in March, where the tribunal dismissed a ₹228 crore insolvency plea filed by IDBI Trusteeship, providing a breather to Coffee Day’s financial restructuring efforts. That legal win has been instrumental in keeping buying interest alive in recent months.

The latest move was also accompanied by heavy trading volumes, with today’s turnover at 3x the 10-day average, suggesting institutional or HNI participation.

• NCLAT ruling (March): Bankruptcy plea by IDBI Trusteeship dismissed

• Legal overhang cleared, aiding investor sentiment

• Volume spike reinforces bullish technical momentum

Operational Metrics Still Weak, But Losses Narrowing

Despite positive market sentiment, fundamentals remain in flux. In May, the company reported a Q4 FY25 net loss of ₹33 crore, narrowing from ₹303 crore loss YoY, but higher than the ₹10 crore loss in Q3 FY25. Revenue from operations stood at ₹268 crore, up YoY but slightly lower than ₹280 crore in Q3.

The company’s debt stress, legacy liabilities, and restructuring efforts continue to cast a shadow, but the reduction in losses and high-profile investor entry are being seen as signs of an early turnaround play.

• Q4 FY25 net loss: ₹33 crore vs ₹303 crore (YoY)

• Sequential loss widened: ₹33 crore vs ₹10 crore in Q3

• Revenue: ₹268 crore (↑ YoY, ↓ QoQ)

Trading View – Momentum Play With Caution

While the stock is showing strong short-term bullish momentum, driven by Dolly Khanna’s entry and technical volume breakout, traders must stay cautious of high volatility and limited visibility on earnings revival. The ₹40 level acts as a near-term resistance, while support lies at ₹32.

Watchlist:

• Coffee Day Enterprises (₹37.25) – Monitor for breakout above ₹40 on sustained volumes

• Future Retail, V2 Retail – Other turnaround stories attracting HNI interest

• Nifty Smallcap 250 – Broader small-cap momentum to watch as investor risk appetite returns

Check This:

• Coffee Day Enterprises Stock Price