Cupid Breweries - Cupid Breweries

📊 BSE: 512361 🏢 Breweries & Distilleries 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company reported a decline in total income during FY 2024–25 compared to the previous year, primarily due to a subdued operational scale-up. Specific percentage growth for the single segment (alcoholic beverages) was not disclosed, but operations are in an emerging stage with negative margins.

Geographic Revenue Split

Revenue is primarily domestic-focused with expansion plans targeting Southern and Eastern regions of India. International expansion is being evaluated in Ras Al Khaimah (UAE) and Uzbekistan to establish a global footprint.

Profitability Margins

Operating Profit Margin (OPM) and Net Profit Margin (NPM) both declined sharply and remained negative in FY 2024–25. This was driven by a significant increase in pre-revenue operating expenses and fixed overheads (finance costs) ahead of full-scale revenue generation.

EBITDA Margin

EBITDA margins are currently negative due to the company being in a capacity build-up phase where investments in people, capacity, and compliance preceded revenue generation. Specific YoY percentage change was not disclosed.

Capital Expenditure

The company is undergoing significant capital expenditure for upcoming contract bottling units in Goa (Ponda), Mysore (Karnataka), Kalyani (West Bengal), and Pune (Maharashtra). Borrowings for project financing increased to INR 6.84 Cr (₹684.07 lakh) in FY25 from INR 2.16 Cr (₹216.03 lakh) in FY24, representing a 216.6% increase.

Credit Rating & Borrowing

Credit rating not disclosed. Borrowings increased by 216.6% to INR 6.84 Cr to fund project requirements. Interest rate percentages were not specified, but finance costs contributed to the widening net loss.

⚙️ Operational Drivers

Raw Materials

Extra Neutral Alcohol (ENA), packaging materials, and logistics are identified as the primary raw materials and cost drivers. Specific percentage of total cost for each was not disclosed.

Key Suppliers

Not specifically named; the company mentions maintaining long-term vendor tie-ups to mitigate price volatility.

Capacity Expansion

Current capacity not disclosed in units. Planned expansions include a distillery and brewing facility in Goa, brewing capacity expansion in Mysore, a new integrated unit in Kalyani, and craft beer/premium segment production in Pune. Additionally, an IMFL unit in Gopalpur, Odisha is being re-engineered into a Malt-Spirit unit.

Raw Material Costs

Raw material costs are subject to volatility, particularly ENA and packaging. The company uses long-term vendor tie-ups as a procurement strategy to minimize the impact of price fluctuations on margins.

Manufacturing Efficiency

Capacity utilization metrics were not disclosed as the company is in an early stage of operations with several units still under development.

Logistics & Distribution

Distribution costs are expected to be a significant factor as the company strengthens its retail networks in Southern and Eastern India.

📈 Strategic Growth

Expected Growth Rate

6-8%

Growth Strategy

Growth will be achieved through a multi-pronged strategy: expanding manufacturing capacity across five Indian states, launching premium variants and ready-to-drink (RTD) beverages, strengthening distribution in Southern and Eastern India, and pursuing international forays in the UAE and Uzbekistan. The company is also leveraging backward integration through its Malt-Spirit unit in Odisha.

Products & Services

Beer, Indian Made Foreign Liquor (IMFL), craft spirits, premium liquor variants, and ready-to-drink (RTD) beverages.

Brand Portfolio

Cupid Breweries and Distilleries, Crochet Industries (subsidiary).

New Products/Services

Launch of premium variants and ready-to-drink (RTD) beverages. Expected revenue contribution percentage not disclosed.

Market Expansion

Targeting Tier-II and Tier-III cities in India, alongside international expansion into Ras Al Khaimah (UAE) and Uzbekistan.

Market Share & Ranking

Not disclosed; the company is currently an emerging player in the Alcobev sector.

Strategic Alliances

Engaging contract bottling units in Goa, Mysore, Kalyani, and Pune to scale production without full ownership of every facility.

🌍 External Factors

Industry Trends

The Indian Alcobev industry is growing at 6-8% CAGR, expected to reach USD 55-60 billion by 2030. Trends include 'premiumization,' increasing acceptance of craft beverages, and a demographic dividend with 65% of the population under 35 years of age.

Competitive Landscape

Intense competition from both domestic players and multinational corporations (MNCs) in the beer and spirits segments.

Competitive Moat

The company's moat is built on a multi-brand portfolio and a diversified manufacturing base across multiple states, which provides a hedge against state-specific regulatory risks. However, this moat is currently in the development phase.

Macro Economic Sensitivity

The company is sensitive to India's GDP growth (projected at 6–6.5% for FY 2025-26) and rising disposable incomes, which drive the 6-8% CAGR of the Alcobev industry.

Consumer Behavior

Shifting preferences toward premium, craft, and flavored spirits, as well as experiential products, are driving demand for the company's new product launches.

Geopolitical Risks

Geopolitical uncertainties are noted as risks impacting imports and overseas investments in the UAE and Uzbekistan.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by complex state-level controls, excise regimes, and licensing frameworks. The company must comply with SEBI (LODR) and Companies Act provisions for its corporate governance.

Taxation Policy Impact

The company is highly dependent on state-level excise and licensing frameworks. Changes in state taxation can significantly impact product pricing and profitability.

⚠️ Risk Analysis

Key Uncertainties

Regulatory changes in state excise policies and volatility in raw material prices (ENA) are the primary uncertainties, with the potential to impact margins by over 25% as seen in recent financial ratio fluctuations.