Allied Blenders and Distillers

“Overall, we expect the topline to grow in-line with the stated guidance of mid-teens.”

“We will continue to invest behind our core brands, super-premium to luxury portfolio and organisational capabilities, while maintaining FY27 EBITDA margins broadly in line with FY26.”

“So, other than maintenance capital, which is a routine matter with any liquor business, right now, we don't see anything beyond the ₹1,600 crores being incurred.”

“So, with this kind of capex journey that we have undertaken and with 40 manufacturing plants all over the country, our annual maintenance capex would be in the region of ₹75 crores to ₹100 crores per annum.”

“In August 2026, the company announced setting up a 66 Million bulk litre per year Dual Mode Distillery with an investment of about ₹293.5 crore in UP.”

“Expansion of bottling capacity from the existing capacity of 6 million cases per year to an aggregate capacity of 13 million cases per year by establishing a new fully automated bottling unit, refurbishment of the existing 13 million bulk litre per year molasses distillery and acquisition of additional land for the proposed expansion with an investment of about ₹202 crores.”

“The bottling unit project is progressing well and is expected to be operational in the next couple of months.”

“it has a capacity of 4 million liters per annum. We have set up a state-of-the-art maturation warehouse.”

“In October 2026, we commenced commercial operations at our bottling facility, with an initial capacity of 6 million cases per annum.”

“And there is this capacity right now is 6 million cases. By Q3FY28, we are planning to expand the capacity to 13 million cases.”

“The volumes grew 15.5% year-on-year and 17.7% quarter-on-quarter to 5.5 million cases.”

“Post receipt of relevant approvals in Q4 FY26, we have aggressively rolled out the brand in Andhra Pradesh, which is one of the largest brandy markets in India. With strong consumer response, we have been able to achieve near double digit market share in the state in the Mass Premium category.”

“During Q2 FY27, Prestige & Above sales grew 13.4% year-on-year and 7.5% quarter-on-quarter to ₹605 crore.”

“The brand delivered 3.2 million cases in Q2FY27, up 20.6% from 2.6 million cases in Q2 FY26, with average monthly volumes continuing to exceed 1 million cases.”

“If I don't do anything, I will still hit 12 million cases. So, to reach that 14 million we have to stretch out as far as activations are concerned, which we will do.”

“This strong momentum was visible through the first half of FY27, during which we achieved record monthly sales on three occasions, culminating in our highest-ever monthly volume of over 3.5 million cases in September 2026.”

“We expect further momentum from the Telangana policy and anticipated price revisions, and we are seeing improving sentiment on the gradual clearance of outstanding dues in Telangana.”

“But with market liberalizing and opening up, we feel that just like UP had evolved as India's best alcohol market, it is Tamil Nadu that is going to do the same magic.”

“ABD is a small player there with about 40,000 cases to 50,000 cases per month.”

“Growth will be supported by continued momentum in ICONiQ White, growth in our other millionaire brands, an increasing contribution from the ABD Maestro portfolio, the scale-up of The Indian Edit in premium whisky, and new opportunities in identified white spaces, including deluxe vodka. With the festive season ahead, we expect the topline momentum to continue.”

“It strengthens our in-house bottling capability in one of our key markets and is expected to improve service efficiency while delivering cost benefits through higher in-house bottling and savings on franchise fees of around ₹27 per case.”

“Gross margin stood at 45.3%, an expansion of 90 basis points year-on-year, driven by a profitable brand mix across states and higher realisation per case, complemented by backward integration benefits from PET bottle manufacturing, despite the impact of global supply chain disruptions.”

“On a like-to-like basis, excluding this impact, gross margin would have been 47.9%, an expansion of 342 basis points on year-on-year basis.”

“Reported EBITDA stood at ₹143 crore, up 10.0% year-on-year and 19.2% quarter-on-quarter, with EBITDA margin at 12.4%. The margin was lower by 66 basis points year-on-year, reflecting our continued investments in core brands and the newly established super-premium to luxury portfolio.”

“India, U.K. FTA is likely to give us 70 basis points this year.”

“Net debt increased by ₹292 crore to ₹1,273 crore as of September 2026, compared to ₹981 crore as of March 2026.”

“The increase in net debt was predominantly for capex projects of ₹351 crore during the half-year. As a result, Net Debt to EBITDA stood at 2.2x”

“0.8x, marginally above our stated framework of below 2.0x and 0.75x, respectively, due to milestone-based payments for certain capex projects. We expect these metrics to be within the stated framework on a full financial year basis.”

“I think we have no doubt that the financial metrics that we talk about as per our stated guidelines by the end of the year when the capex program starts justifying, we will fall in line.”

“We are also pleased that India Ratings & Research has upgraded ABD’s rating by two notches to ‘IND AA-’ with a Stable outlook.”

“Our capex program is planned to be funded through internal accruals and debt, while maintaining leverage within our defined framework through the investment cycle.”

“In January 2026, we acquired non-operating assets for about ₹70 crore and immediately undertook the upgradation of the bottling unit for about ₹40 crore in Moradabad.”

“As per stated plan, we launched a refreshed identity and premium packaging of the brand from September 2026.”

“In September 2026, we launched The Indian Edit to strengthen our premium whisky portfolio.”

“Plus, I must tell you that the white space to make the P&A look more attractive is the launch of a vodka, which will happen before the year-end.”

“In August 2026, we announced our first overseas local production arrangement, for Officer’s Choice Blue in Malaysia, through an asset-light co-bottling model with an established local partner.”

“Actually, I have been in the company for 6 months now. And I started taking charge from the month one, so technically 4 months, but 6 months in action.”

“Profitability continued to be impacted by global supply chain disruptions, with an estimated impact of ₹29 crore during the quarter.”

“EBITDA would have been ₹172 crore, higher by 32.3% on year-on-year basis, with EBITDA margin at 14.9%, an expansion of 186 basis points.”

“Excluding the ₹53 crore impact of global supply chain disruptions during the half-year, like-to-like EBITDA would have been ₹316 crore, higher by 27.1%, and like-to-like PAT would have been ₹154 crore, higher by 29.8% year-on-year.”

“Like-to-like PAT would have been ₹91 crore, higher by 44.3% on year-on-year basis.”

“Global supply chain disruptions continued to have an impact during H1 FY27, with an estimated impact of ₹53 crore, but our underlying business fundamentals remain resilient and our medium-term margin levers remain intact.”

“So, I have lost about 250 basis points of EBITDA margin because of the West Asia crisis. But nevertheless, by the close of FY27, we hope we will be able to do as well as what we did in FY26 despite the challenges.”

“However, recently, some uncertainties have been raised by Government authorities on the import duty of bulk scotch under the applicable HSN codes.”

“And I think I am being optimistic that it will get resolved over the next 1 month. In any case, we have stocks, which will last us till early December.”

“So first of all, I must tell you that the inflationary pressures are still on. We are only hoping that Q4 will be much better.”

“On a consolidated basis, Income from Operations stood at ₹1,152 crore, reflecting growth of 15.8% year-on-year and 17.1% quarter-on-quarter.”

“Total volumes stood at 10 million cases, compared to 9.0 million cases in Q2FY26, representing growth of 11.1% year-on-year.”

“PAT stood at ₹69 crore, up 9.7% year-on-year and 52.0% quarter-on-quarter.”

“For H1 FY27, Income from Operations stood at ₹2,135 crore, up 10.9% year-on-year, and EBITDA at ₹263 crore, up 5.8%.”

“Reported PAT for the half-year stood at ₹114 crore, compared to ₹119 crore in H1 FY26.”