Coffee Day Enterprises (CDEL) emerged as the top gainer on the BSE today. From its previous close of Rs.39.83, the stock opened slightly higher at Rs.40.84 and went on to hit a new 52-week high of Rs.47.37.

Two key factors are driving the renewed buying interest – improving earnings and continued debt reduction. On the earnings front, the company trimmed its loss to Rs.11 crore in the June quarter of FY26, while net revenue rose 6% year-on-year to Rs.263 crore. In the same quarter last year, revenue stood at Rs.248 crore with a post-tax loss of Rs.17 crore. CDEL is the parent company of Coffee Day Group, which operates Café Coffee Day.

The stronger trigger for today’s rally, however, is debt-driven. Investors are rewarding the company for its sharp deleveraging over the past six years, from a peak debt of Rs.7,500 crore in 2019 to nearly a fifth of that now, aided by asset sales and lender settlements.

• 2019: Peak debt crisis, Rs.7,500 crore
• 2020: Sale of Global Village Tech Park (Rs.2,700 crore proceeds) → debt fell to Rs.4,800 crore
• 2021–23: Further asset sales and lender settlements brought debt down to Rs.2,500 crore
• 2024–25: Additional repayments/monetisation → debt near Rs.1,500 crore

This steep fall in leverage, along with fresh reports of progress in August 2025, has provided the immediate trigger for the rally.