Coffee Day Shares Surge 20% Amid Karnataka CM Siddaramaiah's Resignation
Coffee Day Enterprises' Shares Soar 20% as Karnataka Chief Minister Siddaramaiah Steps Down
May 29, 2026 - Coffee Day Enterprises, the parent company of Café Coffee Day (CCD), witnessed a significant surge in its shares, hitting a 20% upper circuit on the day Karnataka Chief Minister Siddaramaiah stepped down from his position, paving the way for new leadership in the state.
Siddaramaiah's decision is seen as a move to facilitate a rotational chief ministership arrangement between himself and Deputy Chief Minister DK Shivakumar. The Congress high command had directed this arrangement, according to reports. Shivakumar is closely tied to the CCD family through a matrimonial alliance, as his eldest daughter, Aisshwarya, is married to Amartya Hegde, the son of late CCD founder VG Siddhartha.
As a result of Siddaramaiah's resignation, Coffee Day shares were trading 20% higher at Rs 34.78 apiece at 11:35 am on May 29. Meanwhile, Siddaramaiah traveled to New Delhi to meet with Leader of Opposition in Lok Sabha Rahul Gandhi and Congress Parliamentary Party Chairman Sonia Gandhi, accompanied by Deputy Chief Minister DK Shivakumar and Karnataka Congress in-charge Randeep Surjewala.
The meeting, which took place a day after Siddaramaiah's resignation, focused on finalizing Rajya Sabha candidates, Legislative Council (MLC) nominations, and a possible cabinet reshuffle ahead of the swearing-in of the new government. According to sources, several ministers from the Siddaramaiah cabinet are unlikely to find a place in the proposed DK Shivakumar-led cabinet. The party leadership is also considering appointing four Deputy Chief Ministers to maintain social and regional balance in the new dispensation.
In related news, Coffee Day Enterprises reported a consolidated net profit of Rs 132.07 crore for the fourth quarter ended March 31, 2026, marking a sharp recovery from a net loss of Rs 114.16 crore in the same quarter of the previous financial year. Consolidated revenue from operations for Q4FY26 climbed to Rs 280.51 crore, up 4.6% from Rs 268.03 crore reported in Q4FY25.
| Quarter | Consolidated Revenue from Operations (Rs crore) |
|---|---|
| Q4FY25 | 268.03 |
| Q4FY26 | 280.51 |
| Growth Rate | 4.6% |
Investor Takeaway
Investors should be aware of potential market volatility due to political developments in Karnataka.
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