The largest domestic spirits company in India in terms of annual sales volumes, with a presence in five categories: whisky, brandy, rum, vodka, and gin. This company is worth keeping an eye on.
We’re talking about Allied Blenders and Distillers Limited (ABD), engaged in the business of manufacturing, purchasing and sale of alcoholic beverages/liquids. Its manufacturing network currently includes 37 units, comprising 9 owned bottling units, 2 owned distilleries, and 26 non-owned manufacturing units. In this article, we’ll take a closer look at the company’s financial performance, capacity expansion, key ratios, management guidance, and more.
With a market cap of Rs. 13,957.5 crores, shares of Allied Blenders and Distillers Limited hit an intraday high at Rs. 503 on Thursday, up by around 2 percent on BSE, as against its previous closing price of Rs. 493.1.
Management Guidance
By FY28, the company is targeting consistent mid-teen revenue growth, building on the strong momentum of Q1 FY26, which delivered 22.5 percent YoY growth. The Prestige & Above (P&A) Salience is expected to increase its share to 50 percent of volumes by FY28, compared to 46.2 percent in Q1 FY26, supported by the continued expansion of the super-premium to luxury portfolio. While Q1 FY26 marked the creation of five unique flavour price points portfolio through a “Build, Buy & Partner” strategy, the focus by FY28 will be on extending the range across select categories.
On the supply side, backward integration remains a key enabler of growth and margin improvement. As part of the Extra Neutral Alcohol (ENA) integration strategy, the company acquired an 11 MLPA distillery in Aurangabad, Maharashtra, for Rs. 72 Crores in Dec-24. The operations commenced in Feb-25, and it is currently operating at full capacity.
Further expansion plan is under regulatory approval process to increase capacity by an additional 50 MLPA, taking the total capacity to 61 MLPA. It will be fully captive by FY28 and includes a total investment of around Rs. 260 crores.
Integrated Malt Distillery Construction is currently progressing as planned, with a captive 4 MLPA capacity to meet the current blending needs of 2 MLPA and future single malt whiskies. It is expected to be operational in Q4 FY26 and includes an Investment of Rs. 75 crores.
In addition, ABD is in the advanced stage of commissioning a captive PET bottle manufacturing facility of ~615 Mn bottles PA to meet 70-75 percent of current annual PET packaging requirements. It is expected to be operational in Q2 FY26 and includes an investment of Rs. 115 crores.
Gross margins are also expected to lift above 45 percent by FY28, up from 43.2 percent in Q1 FY26, and expand EBITDA margins to ~17 percent versus 12.8 percent in Q1 FY26. Finally, prudent capital allocation is projected to drive a pre-tax ROCE of 23-25 percent by FY28, compared with 16.9 percent in FY25.
Financial Performance
ABD reported a significant growth in its revenue from operations, showing a year-on-year increase of around 22 percent from Rs. 758 crores in Q1 FY25 to Rs. 923 crores in Q1 FY26. Similarly, its net profit increased during the same period from Rs. 11 crores to Rs. 56 crores, representing an impressive rise of about 409 percent YoY.
In terms of key financial metrics, the company has a Return on Equity (RoE) of 20 percent and a return on capital employed (RoCE) of 21.1 percent, with a debt-to-equity ratio of 0.59. Between FY22 and FY25, Allied Blenders revenue grew at a 3-year CAGR of over 9 percent, while net profit surged at a CAGR of around 480 percent.
Written by Shivani Singh
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