Coffee Day Enterprises Limited has reported a one-time material increase in its employee benefit provisions following the implementation of India’s new labour framework, booking an exceptional charge of ₹13.70 million in its financial results.
Effective November 21, 2025, the Government of India consolidated 29 existing labour laws into four labour codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.
” The New Labour Codes has resulted in a one-time material increase in provision for employee benefits on account of recognition of past service costs,” Coffee Day said.
They added, “Based on the requirements of New Labour Codes and the ICAl clarification, the Company has assessed and accounted for the estimated incremental impact of Rs.13. 70 million as Exceptional Items in the Financial Results for the quarter ended December 31, 2025 and year ended March 31 , 2026.”
In a regulatory disclosure, Coffee Day Enterprises Limited said the transition to the new regime has resulted in a one-time material increase in provisions for employee benefits due to the recognition of past service costs.
Based on the requirements of the New Labour Codes and clarifications issued by the Institute of Chartered Accountants of India (ICAI), the company assessed the estimated incremental impact and accounted for it as an exceptional item.
Accordingly, Coffee Day Enterprises recognised an exceptional expense of ₹13.70 million in its financial results for the quarter ended December 31, 2025, as well as for the year ended March 31, 2026.
The company said the impact is non-recurring and arises solely from alignment with the revised statutory framework and applicable accounting guidance.
