Shares of Coffee Day Enterprises surged 20%, hitting the upper circuit limit for the day, despite weak market sentiment, after the National Company Law Appellate Tribunal (NCLAT) overturned insolvency proceedings against the company.

In a significant relief for the operator of Café Coffee Day, the NCLAT’s Chennai bench dismissed a case filed by IDBI Trusteeship Services over an alleged Rs 228 crore default. This ruling reversed the National Company Law Tribunal’s (NCLT) August 2024 order, which had admitted IDBI Trusteeship Services’ insolvency plea against the company.

Following this development, Coffee Day Enterprises’ stock jumped 20%, reaching the upper circuit limit at Rs 25.65 on Monday, bringing its total market capitalization to over Rs 541.86 crore. In the previous trading session on Friday, the stock had hit a 52-week low of Rs 21.38.

Before this recovery, the stock had plummeted over 70% from its 52-week high of Rs 74.54 in April 2024. It remains down 55% over the past year and has lost one-third of its value in the last six months. From its all-time high of Rs 374.60 in January 2018, the stock has nosedived 95%.

For the quarter ending December 31, 2024, Coffee Day Enterprises reported a widened net loss of Rs 10.28 crore, alongside a slight increase in total revenue to Rs 280.41 crore. The company posted an operating profit of Rs 36 crore, with an operating margin of 13% for the period.

Coffee Day Enterprises operates across multiple sectors, including coffee, logistics, financial services, and hospitality. It owns and manages the Café Coffee Day chain, along with resorts and hotels, and is also engaged in the trading of coffee beans.