VINTAGE COFFEE AND BEVERAGES LIMITE (NSE: VINCOFE) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Balakrishna Tati — Chairman and Managing Director
Urmi Raj Mehta — Chief Financial Officer
Analysts:
Unidentified Participant
Sudarshan Padmanabhan — Analyst
Varshit Shah — Analyst
Raj Shah — Analyst
Vidisha Kothari — Analyst
Shubham Bhatt — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Vintage Coffee and Beverages Ltd. Q3FY26 earnings conference call hosted by Nooma. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Palash Kale from Nuvama wealth and Investment Ltd. Thank you. And over to you sir.
Unidentified Participant
Thank you. Good afternoon everyone. I welcome you all on behalf of Nuama Wealth. I thank the management of Vintage Coffee and Beverages for the opportunity to host their Q3FY26 earnings call. We have with us today Mr. Balakrishna Tati, Chairman and MD Mr. Sai Tejatati Executive Director, Mr. Pritam Rai Group Head, Mr. Kranti Kumar Yarkali, Chief Financial Officer and Mr. Jawahar Konjivaram, Head of Sales and Marketing. I will now hand over to the call to the management Mr. Balakrishna Tati to walk us through the quarter. Thank you all. And over to you Bala sir.
Balakrishna Tati — Chairman and Managing Director
Thank you. Good afternoon ladies and gentlemen and a warm welcome to all of you. Thank you for joining us today to discuss the financial and operational performance of Vintage Coffee and Beverages Ltd. For the third quarter and nine months ended FY26. On behalf of management, it is pleasure to connect with you once again and share an update on our progress during what has been a period of sustained growth and operational consolidation for the company. We sincerely appreciate your time, participation and continued confidence in Vintage Coffee. Vintage Coffee and Beverages Ltd. Is engaged in manufacturing and export of instant coffee and instant chicory and value added beverage solutions with a strong focus on private label and customized offering for global customers.
Our operations are headquarters in Hyderabad and supported by modern fully integrated manufacturing facilities equipped with advanced aroma recovery technology, automated extraction system and sustainable focused process including zero liquid discharge and high water recovery. Over the years we have built a business model that is export led, quality driven and execution focused catering to customers across Europe, Central America, Russia and CIS countries, Middle East, Africa, Southeast Asia and select other international markets. Our emphasis of consistent quality, timely execution, customer specific formulation continues to strengthen our long standing relationship and competitive positioning. Coming to the financial performance of Q3FY26 the quarter reflected strong operational execution, healthy demand across our core export markets and improved capacity utilization.
Consolidated revenue for the quarter stood at rupees 1505 million as against 881 million last year registering a year on year growth of 71%. This growth was driven by higher volumes, better realization and improved geographic and product mix. EBITDA for quarter increased by 79% year on year to Rs 287 million as against FY25 161 million with EBITDA margin improving to 19.1% supported by disciplined cost management, products mix and operating leverage. Profit after tax for the quarter was 191 million growing by 54% year on year. For nine months ended FY26 the company delivered a strong growth based performance.
Total income increased by 91% year on year to Rs. 3877 billion EBITDA for nine months FY26 to 691 million reflecting a growth of 105% year on year with margin expanding to 17.8%. Profit after tax increased to 109% year on year to Rupees 512 million. This performance reflects sustained volume growth, improved operational efficiencies and continued focus on higher value product and export markets. We are pleased to inform you that cash flow operating activities turned positive in the third quarter. The shortfall of 18.91 crores reported in H1FY26 is expected to to be fully offset resulted in a breakeven cash flow position for FY26.
Operationally Q3 FY26 marked an important milestone for the company as we achieved full utilization of our existing instant coffee capacity of 6,500 metric tons per annum. This was supported by strong order inflow, efficient production planning and improved coordination across procurement, manufacturing and logistics. Exports continue to be the prime and primary growth driver accounting for a predominant share of revenue with strong traction across Europe, Russia and CIS countries, Africa, Southeast Asia and Central America and new geographies. We also continue to work towards improving customer diversification, reducing concentration risk and expanding our presence across newer geographies and customer segments.
In line with our medium term growth strategy, we are progressing steady steadily on our capacity expansion plans. The additional capsulated and agglomerated capacity of 4,500 meters per annum is expected to be commissioned by the end of FY26. This will increase our total installed capacity by 69% to 11,000 metric tons per annum. We are reasonably confident of ramping the new capacity based on discussions with potential customers. We are also on track for the 5,500 metric tons per annum freeze dried coffee facility have already issued purchase orders to machinery suppliers. The expansion is expected to strengthen our value added portfolio, support entry into premium segments and enhance margins over the medium terms from the industry perspective the global instant coffee market continue to show steady growth supported by increasing consumption, convenience, led demand and rising acceptance of customized and private label products across geographies.
While operating environment remains dynamic with respect to raw material prices, currency movement, local demand trends, we believe our integrated manufacturing capabilities, export orientation and customer centric approach place us on strong position to replicate this challenges and opportunities. Looking ahead, we remain confident about the company’s long term growth trajectory supported by capacity expansion, a diversified export footprint, continue to focus on operational efficiency and prudent capital allocation. At the same time, we remain mindful of external valuable and will continue to priorit, discipline, execution, cost control, balance sheet strength. Before concluding, I would like to take this opportunity to thank our employees for their dedication and execution, our customers, our suppliers and the partners for their trust and our dedication and our shareholders for their continued support.
The performance during Q3 and for first nine months of FY26 reflects our collective efforts and reinforces our commitment to build a scalable, sustainable and resilient business. Thank you once again for joining us today. We will now be happy to take your questions. Thank you.
Questions and Answers:
operator
Thank you very much. Yeah, thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sudarshan Padmanabhan from Ask ndpms. Please go ahead.
Sudarshan Padmanabhan
Thank you for taking. Sir. My question is to understand, you know, on the mix. So if I look at between your 2q and 3q if I you know in the presentation there is about 50 tons of, you know, coffee. So more or less, you know, not much of a change visibly there. But when I look at the realization your gross profit as well as EBITDA per ton, I mean I see that there is at least 7 to 8% increase in the realization circulating down to almost 20% increase from a gross profit basis. So can you give us this is not just in this quarter which I’m actually looking at right from the last three to four quarters.
So I am seeing that some of phenomena we are improving the profitability on a percentage basis. So can you give some color on one whether it is sustainable? Number two, what are we doing to basically see this improvement?
Balakrishna Tati
Thank you very much Mr. Padman. Just before I think what I understand from you is that the the EBITDA levels difference in EBITDA levels which is as mentioned earlier also that it is in a cost place the absolute terms. Okay. So irrespective of the the price escalations in the international coffee markets, we still have maintains the the profitability EBITDA level. So because it is in a cost margin basis. So that will continue to be habit in a Q3 and Q4 and the coming months and all my quarters with regards to the first half, you know, because the as we mentioned to you that you know in a first Q1 and Q2 the sales were slightly lower because that was an odd season.
But Q3 and Q4 is an epic season and we are fully exporting the total tons capacity whatever the we have that. So obviously that it will be having a better profitability.
Sudarshan Padmanabhan
I’m more asking on the mix side because when I look at the mix, I mean the gross profit per ton if we look at it as more from 202 rupees a kilogram to 240 rupees a kg. So which I would believe is primarily because of the better mix. So is that right? I mean what are we doing with respect to you know, is that more value added products that we are selling? So what is driving the mix?
Balakrishna Tati
Got it, got it, got it. Got. I’ll explain. Yes, you are right. Absolutely. We just because of the product mix because earlier we were doing it mostly focused on a bulk sales and a bulk packaging exports and all. Now we are more focused on a consumer packs. The consumer packs are in fact in a doy packs and tins and glass jars that is giving a higher revenue and higher realization. And we are continuing to focus more on a consumer pack. So because that is what actually our customers are looking for that and it’s a value added product which we are giving to them.
That’s the reason actually the higher realization it is and the EBITDA levels also higher. And this will continue or improve from these levels. Yes, yes please. Yes please, yes.
Sudarshan Padmanabhan
The other question before I back to Q is you know, the new capacity that is coming in, you know, with respect to N I believe that we also get into contact with some visibility in terms of utilization of capacity. So given the you know, capacity which is just coming and ramping up in the fourth quarter. I mean what is the visibility that we have in terms of utilizing the incremental capacity? And also you spoke about the freeze bed capacity coming in FY28 there. How are the conversations happening? What is the confidence in terms of getting utilization there?
Balakrishna Tati
Thank you. Yeah. With regard with regards to the capacity utilizations, as we said that Q3 and Q4, Q3 onwards we are going with the full capacity utilization. In fact now Q4 also will have the same thing. And as we mentioned earlier also the company has taken all the steps to enhance the capacities from 6,500 metric tons to adding another 4,500 metric tons which is in a pipeline. And it is likely to commence the operational by March. This is what we have. We are expecting 4,500 metric tons capacity per annum will add preferably maybe in a fourth quarter.
That means the current quarter, maybe a small quantity will add in this quarter also. And then we’ll follow by the next year. That is FY 2627. So this is a. This is the strategy what we are having in addition to that. So that means we will going to end up in a March. By end of March 11,000 metric tons capacity in addition to the 5,500 metric tons of freeze trade coffee which is. Again we already initiated the process for setting up this plant and required equipments are identified and we are in vendors identified and equipments.
We have already released an order for equipments and we are in a well in progress state. I think I can say that by next FY27 we should be in a position to even commence a commercial production for this free state coffee which is in a super premium product.
Sudarshan Padmanabhan
Thanks a lot. I’ll join up with you.
Balakrishna Tati
Thank you.
operator
Thank you. The next question is from the line of Aditya Singh from multi bagger stocks. Please go ahead.
Unidentified Participant
Good evening. Thank you for the opportunity. Am I audible?
Balakrishna Tati
Yes, please. Good. Very good afternoon.
Unidentified Participant
I had a couple of questions regarding what you just said. Could you please tell me that what is the sales mix between bulk and consumer tax?
Balakrishna Tati
The sales mix. Okay. Your question is that what are the sales mix? Correct. It says what is the facts basically. So right now. Yeah. Yeah. Right now we are doing in a 50, 50 ratios. 50% bulk and 50% to consumer pack. But in a Q3, Q3 and Q4 we are focused more on the increase in the consumer packs which is coming to around 60:40 ratio. 60% in a consumer packs and 40% in bulk.
Unidentified Participant
And is this ratio the overall target for your thought?
Balakrishna Tati
Overall target? You know, going forward since we are already in plans of expansion for another 4,500 tons. Certainly we’ll try to maintain around 65 to 70% in the consumer packs and 30% in bulk.
Unidentified Participant
Okay, the next question was regarding that. How will you be spending the 450 crack on freeze dried capex. You know that has been already in place order for the machinery and how much amount has already been spent?
Balakrishna Tati
No, this is I think one second. You’re saying that the 450crores that’s what free state copy are talking, right?
Unidentified Participant
Yes, free cases.
Balakrishna Tati
Yeah. Three stand copy. Okay, so feasted coffee. Actually what we have we have raised it not only warrants the prep also we raised and we have tied up with some other financial institution from Europe where we are getting a lesser interest component rate for the equipments and all. So I think we raised around 192 crores for the FDC project and for this is we are utilizing for the equipment purchases and building land and building and other things and all. So that is in line with our plans and in fact the institutions also has given an in principal clearances for equipment finances.
Unidentified Participant
Okay, can you bifurcate how will you spend the capex in the coming years? Like how much for the next year and how much for the next year?
Balakrishna Tati
No, actually we have already started releasing the purchase orders for the equipment because the institution financial institutions from Europe they’re not going to lend 100% or they’re going to give it around 70% of that 30% is we are going to use it from this whatever the funds we raised recently and that is going as an advance along with the purchase orders now. Okay, okay.
Unidentified Participant
So can you tell me then how much of it has already been spent?
Balakrishna Tati
We have already spent it approximately around one second. One second. Figures. Yeah, around. Around. Around. Around 60 crores. We spend it out.
Sudarshan Padmanabhan
Okay, and next question was regarding that in relation with the spray tired coffee only. Will there be any slight increase in the new spray tired coffee product? As you mentioned that it will be decided when the project is near completion. And do we expect any margin increase when volume starts coming in from the expanded spare tire facility?
Unidentified Participant
One second you are saying this predator. Sorry, can you come again this question? Of course, I’ll repeat again. Will there be any price increase in the new spray dried coffee product? As you mentioned that it will be decided when the project is near completion. And do we expect any margin increase when volume starts coming from the expanded spray drive facility?
Balakrishna Tati
Yes, you are right. Correct. Absolutely right. Because the price will be added. One is that the. The volumes will come at Q4. As I mentioned that we are going to commence the the additional capacity utilization by March. So some quantity will add it in the Q4 and also the. The obviously then profitability slightly will improve but as much because in the same facilities we are having this at additional capacity of 4,500 tons. The fixed cost are distributed. So definitely it will give in a good this thing on a EBITDA levels. Okay, okay.
Unidentified Participant
And just last question from my side. Do we import our raw material Robusta coffee from outside India or are we procuring it locally?
Balakrishna Tati
We are right now doing around 80, 85% of from the domestically and 15 to 20% imported coffee beans. But obviously then going forward then we’ll, we’ll. We have plans around 60% Indian beans and 40% imported beans. Okay, okay.
Unidentified Participant
And in the spray type of experiment will the price be increased for the new products?
Balakrishna Tati
It is all depends upon the prices because it depends upon the blends and all. Sometimes we have to go in accordance with the blends and the customer requirements and all because we very difficult to say this price will increase or not because in case we add more Arabicas and in that because we not only use only Robusta, we also use Arabica. When we use Arabica the prices will realization will be slightly higher and when we use 100% Robusta the prices will be lower side. So difficult for me to say at this point of time but definitely price levels will be more or less same what we have or maybe slightly it will improve.
And this again depends on the global, global coffee prices and how it is fluctuates and all. So that also makes a lot of difference in that one selling price.
Unidentified Participant
Okay, that was very helpful and informative. Thank you and best of luck.
Unidentified Participant
Yeah, thank you.
operator
Thank you. The next question is from the line of Ashid Shah from Veto Capital. Please go ahead.
Varshit Shah
Good afternoo. Good afternoon sir and congratulations for a great set of numbers and kudos to the execution. Sir, my question is around the growth in the freeze right coffee industry. So if we see the globally the demand scenario freeze that coffee has been growing at a much faster rate. Now given the convenience and the flavor which it offers, do you anticipate beyond the current growth plans freeze red coffee plant to scale up much faster than the spray red coffee plants in terms of utilization?
Balakrishna Tati
Yes, thank you Mr. Shah. See with regards to the freeze trade coffee we have been explaining to you in our earlier call also and one of my few interviews and all see the global trend is like that the freeze trade coffee consumption is going much much faster than the SP and agglomeration which is almost 8 to 10% to growth on year on year globally. Obviously it will, it will give a much better realization and there will be huge demand for the Freezed coffee. As a matter of fact today the freezed coffee the segment especially the country in India itself or you can say globally also most of the visited coffee plants manufacturing the free state coffee has already sold out for the whole year.
So there is a demand is a huge demand is there. And the country’s geographies if you see that the Middle east there is a 4.4% then North America it is around coming to 7%. Then South America is coming to around 20%. So that is. That is the levels of growth in this percentage wise. If you see that in overall it is coming to around 8 to 10%.
Varshit Shah
And sir, my second question is on the expansion. So we have 4500 ton of sprayed ride and agglomerated coming up by March 2026 end of it and another 5500 ton of freeze ride let’s say commissioned by March 2027. So effectively you will have thousand 500 tons of annual capacity from the current 6500 tons, right? That is. That is right, right?
Balakrishna Tati
Yes. 6500 tons is the current capacity. Another 4500 we are adding by March that means by next month so which is coming to around 11,000 metric tons. In addition to the 11,000 metric tons we are going to add another 5,500 meters of free state coffee which is coming to approximately 16,500 MET. So this is the capacities which we going to have at FY27.
Varshit Shah
If I what is the realization on apple to apple basis in freeze dried versus spray died bulk.
Balakrishna Tati
Both bulk.
Varshit Shah
What is the price differential between the two?
Balakrishna Tati
Yeah, the price differential between the spray and the freeze side is approximately around 40% is higher.
Varshit Shah
Oh okay. So 5,500 in capacity which will come will have a 40% or maybe somewhere depending on the blends anywhere between 30 to 40% higher realization than the apple to apple capacity of stated agglomerated.
Balakrishna Tati
Yes, you’re right. Absolutely right. It will be around 30 to 40% higher than enough Free State coffee one. So that much additional additional revenue will get it out of the freeze trade. Coffee? Yes please.
Varshit Shah
Understood. So. So if I were to assume that next year I mean when you add. I mean this year when you add chosen 500 tons so you increase capacity by 70%. After increasing capacity by 70% you add another 50% capacity increase 55% but that will be at a higher realizations. Effectively you’re targeting 70% growth KEGR growth for the next two years. I’m not asking a specific number I.
Balakrishna Tati
Understand but something like that yes, you’re right. That’s true. And that’s true.
Varshit Shah
So I have more question but I will get back in the queue.
Balakrishna Tati
Okay, thank you.
operator
Thank you. The next question is from the line of Raj Shah from Fident Asset Management. Please go ahead.
Raj Shah
Yeah, sorry. Thank you for the opportunity. So couple of questions from our side. First is on your tax rate. So tax rate has come at close to 24% for this quarter. So how do you see that moving forward in for quarter four and for FY26. And secondly so for the entire FDC expansion what kind of gross debt should we assume like for the 450 crores of expansion that we are doing what kind of debt we’ll require for the entire project.
Balakrishna Tati
Yeah, I’ll just give it to our cfo. He will just give more in detail about this.
Urmi Raj Mehta
Total project cost will be the 500 crores out of which the 200 crores will be the equity and internal accruals. And rest of 300 crores will be the debtor debt from that debt from the banks and other institutions. Okay. And on tax rate. On tax. Tax rate. Tax rate is the now full tax rate. Now from the Q3 onwards we are at full tax rate 25 percentage. Okay. Okay, understood. Lastly on your. Yeah sir, sorry, you’re Talking about the 24 tax rate now currently and how about going forward what would be the. Yes, so that actually 24 because there wasn’t some sort of accumulated this thing was there? So that set aside.
So therefore the tax percentage has come down to 24 but the Q4 onwards it will be a full tax rate. Okay, understood. Yeah. Lastly on your inventory days. So so currently they are at close to. We are close to around 101. 110 days. 100, 110 days. So how do you see that going forward? And. And our operating cash flow over the last two, three years has remained weak. So will going forward what kind of conversion from. From to operating cash flow from every cash would be. Yeah, the DJ is in fact 110 days now actually reduce it to some.
To some extent if I’m not mistaken in a Q3 and Q4 also further it will reduce it. This is mainly because of the. The you know, logistics issues and all because transit time is taking more because we sometimes use the imported coffee beans and also we export instant coffee. Then the transit times and the orders what we sourcing from the African other countries and all the transit time is more so that. That’s the reason actually the cycle time, the working capital cycle time is Slightly higher. There’s one and. And I think. I think we are expecting slightly marginally to reduce the working capital cycle in a coming quarter.
So as one and the next one. What you asking me? Yeah, on that only. So for operating cash flows for next couple of years, should that be. Should be that on the positive side going forward. Yeah. Operating cash flow is already. I think. I think from Q3, Q4 onwards it will be in a positive side only. In fact the whole year also it will be break even in fact. Thank you.
operator
Thank you. The next question is from the line of Vidisha from CR Kothari and sons. Please go ahead.
Vidisha Kothari
Hello sir, I just wanted a clarification. So this 450, this is for the 5,000 freeze, right? Coffee expansion alone or is it for the other expansion?
operator
Sorry to interrupt you Mr. We are unable to hear you clearly. Can you speak a bit loudly?
Vidisha Kothari
Yes, please go ahead. Yeah, so the 450cr capex, this is the 5,000 metric ton freeze dried coffee alone or is this the total capex?
Balakrishna Tati
No, this is the 5005. No, 5500 meter tons, not 5000. 5500 meters. This is in a total project capacity. Yes, Free State clone. Free state copy alone.
Vidisha Kothari
Yes, understood. And the other expansion that is for your spray dry copy to 11, 000 metric ton. What is the capex cost for that?
Balakrishna Tati
Yeah, that is. That is the 45 crores and 45 crores we have. We have. We have for maintenance. We have already set up this line actually. So this is in any moment. I think it’s a matter of few days. It is going to be an operational.
Vidisha Kothari
Okay, so this 45. This is the 2000 metric ton addition or alone, right?
Balakrishna Tati
4,500 metric tons.
Vidisha Kothari
Okay, so this is already done. You’re just left with another 450 flood out of which 200cr is already funded through warranty. And you will be taking additional 300cr debt, right?
Balakrishna Tati
Yeah, I’ll explain to you. I think. I think both are clubbing. I’ll just explain in more in detail. FDC project the 450s here what we have so called projected and for which we already party raised the funds. And also we tied up the institutions, financial institutions which is in place. So that is exclusively for for Free State coffee plant. Okay. And with regards to the spreaded what we have an additional capacity which is in pipeline that is for 4,500 meters for which the capex is 45 crores. And this capex we have already. Yeah, this capex already we have utilized data from the our internal accruals and the plant also is ready for the equipment or the machinery also is ready for commissioning.
So in a couple of couple of weeks time it will start product giving a production.
Vidisha Kothari
Okay, and what sort of utilization are we expecting? Since currently we are running at full capacity utilization. So after the new capex, what utilization are you expecting? 2728.
Balakrishna Tati
2728 then we’ll have the capacity utilization of 11,000 plus 5,500 meter tons which is coming to 16,500 metric tons.
Vidisha Kothari
I mean what kind of utilization are you expecting.
Balakrishna Tati
With regards to the. With regards to the spray and agglomerated? Maybe because since I have already mentioned to you that we have already have a good order books and all so we should able to do full capacity utilization and with regards to the freeze state coffee is possible that you know first year maybe we go within a some around 65 to 70% of capacity utilization.
Vidisha Kothari
That’s helpful, thank you sir and all the rest of you.
operator
Thank you. The next question is from the line of Ogar Gurgar Dere from SRI Investments. Please go ahead.
Unidentified Participant
Yeah, hello sir. Congrats on good set of numbers. I had a couple of questions. One is how insulated you are from the coffee price fluctuations and like how do you how quickly you can pass on the price increase or decrease to the your customer?
Balakrishna Tati
Yeah, thank you. So with regards to the coffee flex price fluctuations, you know it’s very volatile. You are right, absolutely. Because it suddenly goes to $200 down and $1 up and is like any terminal traded prices and all. But the point is here is that since we are into value added business so it won’t really give a immediate impact on our final selling prices. So what we do is that we sign a contract for a whole year for a commitments of the quantities but the prices are fixed on the basis of an a quarterly basis.
So once we fix the prices on quarterly basis that will that will remain stands valid for the three months and we still we execute the entire order. So the next quarter again we will keep again considering the average price of whatever the purchase price, market price and all that. On the basis of that we will fix the prices for the next quarter. So this is what actually normally that is the reason there won’t be much impact on a bottom line of the company’s profitability. But yes, certainly sometimes if there is any some sort of a drastic increase in the prices and all will definitely are falling the prices and all definitely we sit with their customers and discuss with them and accordingly then we fix the prices.
Balakrishna Tati
So just to get this right, broadly speaking, you can pass on the price rise to the customer within three months, right?
Balakrishna Tati
No, yeah, we leverage the price and we’ll give it. But as a matter of fact when we, when we, when we fix the prices, we pick the prices on the basis of the current market prices. And similarly we also procure the coffee beans and we release the order for the same price. You know, whatever the price, we are doing the cost, same price, basically release it. So we as a company, we don’t have any sort of an impact on that. And an average definitely we’ll pass on to them because customer at the end of the day customer should get a benefit out of it.
So we pass on to them in the next quarter.
Unidentified Participant
Okay, the next question is on the capacity addition. So in by March 26th you will, will be having the additional capacity. Just wanted to know how quickly you can ramp IT up to 100%. In the last call, I guess you had mentioned in the first quarter or second quarter itself you can ramp it to full utilization. So how quickly you can do that. And second part on that is I guess you just mentioned for the freeze dried capacity which will, which you will be adding at the end of FY27. So like one year from now you can produce at 65% capacity utilization at the very first year.
So like can you explain how can you do that?
Balakrishna Tati
Yeah, with regards to this additional 4,500 metric tons which is coming in March month, I think we should able to do it in the first quarter itself, full capacity utilization. Because this is a same facilities and the same plant. And we know the everything the equipment, because most of the common equipments are used for this additional line. So we are very confident 100 capacity, we can utilize it in the first quarter itself. Number one. Number two, with regards to the freeze red coffee. Yes, certainly. Because this is a new project, new plant obviously for commissioning and do the stabilizing the quality and stabilizing the blends and all it takes 1, 11 month here and there.
And also that’s the reason I mentioned that initially maybe we may go within a 65 to 70% but over a period of second and third quarter onwards then we can ramp up to 100% capacity. So average you can say that around 70, 70%, 65 to 70% we should able to renew the first year. I’m talking about the free state coffee.
Unidentified Participant
Okay, just one more question on like you had signed, you have signed a MoU with the government. So there you will be investing around 1100 crore for a period of next two years. I guess. So this 4, 450 to 500 crore is part one of that, right? So part two of that. How when you will be looking at like a remaining 500 to 600 crore. Like what you are targeting to add the freeze dried or spray tied like when it will come. Can you give some details on that?
Balakrishna Tati
Yes. The idea the company has a vision. Company has a business plan. As per the company’s vision and business plan. What we have. We have. We are planning is that we initially will go with 5500 material for the first phase and second phase again we continue to have another 5500 materials of free state coffee only. So as I mentioned in my previous call also the freeze state coffee market is growing by 10%. So there is a phenomenal demand. And also it is in a the realization is 40% higher than the normal spray and aglow. So we are mainly focused on the freezed coffee in this what MOU we signed with Telangana government.
It will be for the freezed coffee phase one. Phase two.
Unidentified Participant
Like when the phase two will come. And like I guess if you are adding 5,000. Hello. Yes. Yes. So I’m asking. Yeah, go ahead.
Balakrishna Tati
Yeah, I was asking like by when you can. You are targeting for the phase two capacity expansion. And I guess that time or whenever it is commissioned, I guess you will total capacity. You will be having upwards of 21,000 metric tons, right?
Unidentified Participant
Yes, obviously 5,500. Additional times we are adding then it will be 21,000 metric tons. And we are planning to add another 5,500 meter tons in a phase two. Maybe if I the next year 27. End of 27. Okay. So FY end of FY 27 you will be having 16,500. And by FY 28 you will be having 21,000. Is that correct?
Balakrishna Tati
No, not. Not five hundred and twenty eight. Maybe a mid after 28 or something like that. 28, 29. Something like that. So like made of FY 28 USA not the end of FY 28. FY 29. Yes. Also end of like you will be completing that in FY29. Most probably before that only. But I’m just giving an exhibit on FY29. Yes. Okay. Okay.
Unidentified Participant
All right sir. Thank you very much for the answer.
Balakrishna Tati
Thanks.
operator
Thank you. The next question is from the line of Deepali Bansal from Ventura Enterprise. Please go ahead.
Unidentified Participant
Hello. Good afternoon everyone. My first question is regarding the realization as we are talking About. I think also talked about realization. I wanted to understand how our sales mix looked like maybe a year before today, last year or maybe two years before. Because as you can see our realizations per ton have increased from Rupees 700 to approximately 800, 850 levels. What were our sales mix between bulk and consumption consumer divided? Like how was it divided maybe two years ago.
Balakrishna Tati
Yeah. Thank you. Good afternoon. It’s two years ago we were doing almost 80%. 85% is only in bulk and 15%, 10 to 15% in consumer packs. So today we are doing almost 50 and plus 50 plus. No, almost 50 to 55% in a consumer package. And the rest is in a bulk. And going forward we are, we are planning to do a 70% in consumer packs and 30% in bulk. That’s the reason the realization is higher. Yes. So I will talk more about this. Sorry. Moreover. Moreover, two years back we were more focused on the splated coffee which is in a slightly lower price one. Now we are more focused on the agglomerated coffee, grain lifted coffee. So it’s a higher price one. So if we talk about the new freeze rate coffee coming up maybe in a few years, we are looking at bulk or consumer there. What would be our focus? It will be mixed up consumer. Yeah, it will be mixed up consumer and as well as the bulk.
Unidentified Participant
So it would be somewhere around 50, 50. Or are we looking at something which would be more.
Balakrishna Tati
I can, I can say that, I can say that a first year it will be around 70, 30. 70. 65 to 70% in bulk, kind of maybe 25 to 30% in consumer pack. And the second year it will be 50. 50.
Unidentified Participant
All right. Would you be able to give us the order book right now that we have.
Balakrishna Tati
Today? Today as on today the company has the entire quarter four also sold out. Almost. So even additional capacity. What? We have 4,500 also we have gotten a. Almost confirmed letters from the customer. So and the quantities, commitments and all, we got it from the customers. So that is the position as on today. Yes.
Unidentified Participant
All right. One last bookkeeping question, sir. Would you be able to give us the net debt situation of the company right now after quarter three has ended? After Q3 and Q300, right?
Balakrishna Tati
Yes. Yeah, I’ll just give it to you.
Unidentified Participant
All right, thank you.
operator
Thank you. The next question is from the line of Arshit Shah from Veto Capital. Please go ahead.
Varshit Shah
Yeah, thanks for the follow up. Sir, I wanted to check. So since you’re ramping up the 4510 capacity in Q1 FY27, wouldn’t your balance sheet involve investing in working capital in Q4? I mean, you’ll have to, you know, order the raw material, you know, and then start processing it maybe before the starting of the plant. So would you have to load up inventory in Q4?
Balakrishna Tati
Yes, we have already. We already. We have already planned our raw materials in accordance with our additional capacities. What is coming in March month and also going forward for the next year. So that is. I can say that FY27, so what our total capacity 11,000 tons. We already tied up with the suppliers, raw material suppliers and all. So accordingly, we release an orders also as per our orders, export orders, so purchase orders also released. And we also building a stocks there.
Varshit Shah
So while your working capital cycle would be better, as you explained earlier, but purely on a 31st of March basis, when we calculate ratios, probably optically, it would still look higher, right? It was the case last year.
Balakrishna Tati
Yeah, one second CFO will give an answer. Since the major sales is happening happened in that February March. That is the reason numbers is less little bit high. But otherwise it is that it’s intact of the entire working capital cycle of within the 130 days kind of thing. Not more than that inventory of around 60 days and data around 60 to 70 days based on that timelines. So the cycle, the number of days is intact. It may just look optically lower or higher.
Varshit Shah
Yes, yes, understood, sir. And sir, given this 4,500 additional capacity in March, what is the color of customer visibility you have? Is it existing, is it new? I mean, what is the mix between existing and new customers when you ramp up this capacity?
Balakrishna Tati
Yeah, so we have, we are, we are. We have already gotten orders for the from the existing customers. And we are also entering into the new geographies and the new customers and new markets. So we in fact we are. We are targeting the countries where there is a huge scope for the additional spray and agglomeration. So that is the markets which we are planning to enter into that and we already identified and we have been discussion and we are taking a letter consent letters from them and we are getting the orders.
Varshit Shah
Understood. So. So a lot of new customer additions would we would see in FY27. Yes, please. Understood. And sir, one last question on the coffee prices. So the robust coffee prices has come off from at least the highs. They’re not corrected to the previous levels, but they’ve corrected from the highs. So as a company, does it benefit from a working capital cycle perspective in the sense that for the same EBITDA or margin per kilogram. I mean we need slightly lesser investment in inventory. So as an organization we would prefer lower prices on the coffee side. Is that correct?
Balakrishna Tati
Yeah, because we essence we are into value added industries. So obviously because if the prices are lower definitely the working capital will you know to that extent to some reduce reduction in the this thing. So will be. It will be much comfort position for us number one. Number two is with regards to the profitability under if you know cost plus margin places. So there won’t be any impact on profits. I think. I think this is a good sign because of the globally. If you see that this year the coffee is good, the output is very good and Brazil has a good rainfall and all.
So we are anticipating the good price level. The same price levels are maybe slightly lower will maintain it and will really helpful for the companies manufacturing company like us where we can able to working capital. The. The amount of. Amount of working capital what we are using that we can in fact build the stocks there now to get a benefit out of it.
Unidentified Participant
So I think in terms of coffee prices I think the. The worst is behind at least.
Balakrishna Tati
Yes. Yes please. There will be positive impact. There’s a positive trend for the value added products now.
Unidentified Participant
Yes, understood sir. Thank you and all the best. Thank you.
operator
Thank you. The next question is from the line of Shubham Bhatt from LFC Securities. Please go ahead.
Shubham Bhatt
Hello. Am I audible? Yes please.
operator
Yeah.
Shubham Bhatt
Congratulations on a good setup. Number first. So my question is that as you said India Procurement should be 65% from the current 80. 85%. Can you guide how will you replace this procurement like from which geography and how many quarters will it take to reach this target? This is my first question. We are. We are. We are. We are.
Balakrishna Tati
We are targeting to get this the additional coffee beans, imported coffee beans typically from the countries like in African countries. Uganda is the country which produce the robust coffee and that coffees are quite acceptable to most of my customers.
And also Indonesia Cooper Coffee. And we are targeting. We are targeting this to add maybe Q2 of this FA27. Okay, thank you. And my second question is that in future as we expand and freeze that coffee. So which geography are we targeting our customers to be? As you as we know that this segment is growing faster than the other copies. So which geographical. Which geography are we targeting to expand in? Yeah, I think. I think. I think we have. We have not even focused more on countries like Korea, South Korea then you Middle east and also Australia, Indonesia and other countries and all so I think these are.
These are the market. We are now already we are in very advanced stage of discussions with the customers. So. So these are the. These are the. These are the geographies where we want to get a much. You know for a higher decision. Okay. Okay. Thank you. That’s. That’s it.
operator
Thank you. Ladies and gentlemen. Due to time constraints that will be the last question for today. Which is from the line of Nilab Jade from Ashmore. Sorry for that Ms. Nilabja. They has already left the queue. We’ll take the last question. Yes please. Which is from the line of Saurabh Gupta from Financial Free. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity and little louder. Please. Go ahead. Am I audible? Yes, please. Now go ahead. Thank you for the opportunity and congratulations for the great set of number. I have missed one part that you are saying that going forward we will. We will give around 25 tax rate. So is my understanding correct? No, it’s not a 25%. I think whatever the applicable rate. One second. 25. Yeah correct. 25. You’re right.
Balakrishna Tati
Okay.
Unidentified Participant
Okay sir. And the next question is. We said that we are taking lower interest rate from Europe for our 450 crore capex. So can you please provide some color about the interest rate percentage and when it start hitting our P and L I think the interest component is between 6 to 7% in total. Okay. And. Yeah. And the interest component will start. Interest component will start. It will be. Yeah. One second. One second. One second. I’m just giving to my cfo. He will explain. Thank you. The interest rate will be that the 4 to 5 percentage including hedging cost it is at a 6 to 7 percentage.
Okay. And it will start setting our PNL from. It will be FY28. FY28 onwards.
Balakrishna Tati
Yeah. FY27. Little bit FY28.
Unidentified Participant
Okay. Okay. And the last question I have regarding the cash flow from operation. As the management told earlier that we will. We will become cash flow positive in Q3. So if you can provide the number. CFO number for Q3. Q3 is that around 3 to 4 crores is the positive. Definitely Q4 will be that it is a more no number is there. Whatever the deficit is there for H1 it will be wiped out. Okay. Thank you. Thank you. That’s it. From my side. Okay. Yes please.
operator
Thank you. Ladies and gentlemen, as it was the last question for today I will now hand the conference over to management for closing comments.
Balakrishna Tati
Yeah. Thank you. Thank you for your questions and for the constructive discussions. We appreciate the continued interest and engagement from the investment community in Vintage Coffee and Beverages Ltd. Overall, the performance during the quarter and nine months period reflects steady execution across operations and continued progress on our strategic partners priorities. While the operating environment remains dynamic, we remain focused on disciplined execution, operational efficiency and prudent capital allocation. Once again, thank you very much for participation.
operator
Thank you. Ladies and gentlemen, on behalf of Nuvawa wealth and Investment Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.