Synopsis: Liquor stock gained investor attention after rising 3 percent following Q1 FY27 results, as the company targets Rs 5,500 crore revenue by FY28 through premium brands, cost reduction, and expansion plans.
The share of this company, which manufactures and markets Indian-Made Foreign Liquor, including whisky, rum, vodka, brandy, and gin, gained investor traction after Q1 results.
With a market capitalization of Rs 17,020 crore, Allied Blenders & Distillers Ltd’s share on Friday made a day high of Rs 620.55 per share, up 3 percent from the previous close of Rs 602.50 per share. The share of the company gave a return of 32 percent over the last year.
Result Overview
QoQ View
On a QoQ basis, the Revenue from Operations declined by 3.6 percent to Rs 984 crore in Q1 FY27 from Rs 1,020 crore in Q4 FY26, and EBITDA declined by 34.0 percent to Rs 120 crore in Q1 FY27 from Rs 182 crore in Q4 FY26, with the EBITDA margin contracting by 564 bps to 12.2 percent from 17.9 percent. This was accompanied by a Profit After Tax growth of 20.7 percent to Rs 45 crore in Q1 FY27 from Rs 38 crore in Q4 FY26.
YoY View
The Revenue from Operations grew by 5.8 percent YoY to Rs 984 crore in Q1 FY27 from Rs 930 crore in Q1 FY26, and EBITDA grew by 1.2 percent YoY to Rs 120 crore in Q1 FY27 from Rs 119 crore in Q1 FY26, with the EBITDA margin contracting by 55 bps to 12.2 percent from 12.8 percent. This was accompanied by a Profit After Tax decline of 18.7 percent YoY to Rs 45 crore in Q1 FY27 from Rs 56 crore in Q1 FY26.
Q1 Performance highlights
The company reported consolidated income from operations of Rs 984 crore in Q1 FY27, up 5.8 percent from Rs 930 crore in Q1 FY26. EBITDA remained largely flat at Rs 120 crore compared to Rs 119 crore a year ago, while net profit declined 18.7 percent to Rs 45 crore from Rs 56 crore due to higher investments in its premium portfolio and global supply chain disruptions.
The Prestige & Above portfolio continued to drive growth, with volumes rising 10.7 percent year-on-year to 9 million cases. Its share in total volumes increased to 48.2 percent from 46.2 percent, while value contribution improved to 59.3 percent from 55.8 percent. ICONiQ White recorded strong growth of 33.8 percent, reaching 3.1 million cases during the quarter.
The company expanded its international presence to 39 countries during Q1 FY27 and continued to strengthen its luxury portfolio under ABD Maestro with the launch of Zoya Pink. Excluding the Rs 24 crore impact from global supply chain disruptions, like-for-like EBITDA would have risen 21.4 percent to Rs 144 crore, while adjusted net profit would have increased 13.6 percent to Rs 63 crore.
Target Outlook
The management expects Allied Blenders to continue its growth over the next two years and believes the company can achieve around Rs 5,500 crore in revenue by FY28, which is a 40 percent growth from FY26 revenue. It also expects EBITDA to reach nearly Rs 1,000 crore, supported by higher sales of premium products, better operating margins, and lower production costs.
How is the company looking to achieve this target?
The company plans to achieve its FY28 target by focusing on its premium product portfolio, which continues to see strong demand. Its flagship brand, ICONiQ Whisky, remains the key growth driver, while Officer’s Choice Blue and Sterling Reserve will be relaunched with a refreshed positioning from the third quarter to boost sales.
At the same time, the company is investing in backward integration projects to reduce production costs and improve margins. New malt spirit, PET bottle and bottling plants, along with the expansion of its ENA facility, are expected to improve operational efficiency and support long-term profitability.
Another major growth driver is the India-UK Free Trade Agreement, which is expected to lower the cost of importing Scotch from the second half of FY27. Along with lower debt, expected recovery of pending dues from the Telangana government, and funding future expansion through internal cash flows and borrowings, the company believes it is on track to achieve its FY28 targets.
About the Company
Incorporated in 2008, Allied Blenders and Distillers Limited is India’s second-largest spirits company by volume, offering detailed financial information on platforms like Screener. Headquartered in Mumbai, it manufactures and markets Indian-Made Foreign Liquor, including whisky, rum, vodka, brandy, and gin.
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