💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 108.13% from INR 138.69 Cr in FY23 to INR 288.65 Cr in FY24, and further increased 22.16% to INR 352.62 Cr in FY25. Revenue for 9MFY25 stood at INR 289.88 Cr.

Geographic Revenue Split

Operations are concentrated in Uttar Pradesh, with manufacturing facilities located in Sandila (Hardoi) and Sikandrabad (Bulandshahar).

Profitability Margins

Net profit margin improved from 5.13% in FY24 to 8.32% in FY25 (up 62.18% YoY). Operating profit margin rose from 13.08% to 14.97% (up 14.45% YoY) due to enhanced capacity utilization and operational efficiencies.

EBITDA Margin

EBITDA margin was 13.90% in FY25 (INR 49.01 Cr) compared to 12.02% in FY24 (INR 34.71 Cr), reflecting a 41.18% YoY growth in absolute EBITDA.

Capital Expenditure

Historical capex was not explicitly detailed in INR Cr, but the company is warned that unplanned capex could deteriorate its liquidity position.

Credit Rating & Borrowing

Upgraded to IVR BBB/Stable in December 2025 from IVR BBB-/Stable. Long-term bank facilities total INR 26.90 Cr, including a term loan of INR 16.90 Cr and cash credit of INR 10.00 Cr.

⚙️ Operational Drivers

Raw Materials

Grain (Rice) is the primary raw material for manufacturing Extra Neutral Alcohol (ENA).

Import Sources

Sourced domestically, primarily within Uttar Pradesh and surrounding agricultural regions.

Capacity Expansion

Current operations include a distillery unit for ENA production and an IMFL bottling facility in Sandila, Hardoi. Future expansion plans are not quantified in MT/units.

Raw Material Costs

Susceptible to volatility in grain prices (rice) which are seasonal and influenced by weather conditions, impacting overall production costs and margins.

Manufacturing Efficiency

Capacity utilization improvements led to a 49.91% YoY increase in Return on Capital Employed (ROCE) to 0.45 in FY25.

Logistics & Distribution

Debtor's turnover ratio improved 6.37% YoY to 110.01 in FY25.

📈 Strategic Growth

Expected Growth Rate

22.16%

Growth Strategy

Growth is driven by bottling partnerships with leading liquor players like United Spirits Limited (Diageo), brand-building initiatives, organizational reforms, and leveraging economies of scale in the IMFL market.

Products & Services

Extra Neutral Alcohol (ENA) and Indian Made Foreign Liquor (IMFL).

Brand Portfolio

United Spirits Limited (Diageo) brands (bottling partner).

New Products/Services

Focus on accelerating the growth of core brands and portfolio optimization.

Market Expansion

Expanding competitive edge in the Indian IMFL market through distribution reforms.

Strategic Alliances

Manufacturing agreement with Diageo (United Spirits Limited) for producing their brands in Uttar Pradesh.

🌍 External Factors

Industry Trends

The Indian alcoholic beverage industry is evolving with regulatory tailwinds and increased product accessibility, though state-level policy uncertainty remains a key challenge.

Competitive Landscape

Competes with players having stronger distribution networks and marketing capabilities.

Competitive Moat

Moat is built on strategic bottling partnerships with global leaders like Diageo and a positive turnaround in net worth (INR 10.59 Cr in FY25) supported by loan-to-equity conversions.

Macro Economic Sensitivity

Sensitive to India's GDP growth (7.0% in FY25) and strengthening consumption trends in the services and infrastructure sectors.

Consumer Behavior

Steady expansion of India's IMFL market driven by diverse consumer segments.

⚖️ Regulatory & Governance

Industry Regulations

Operates under stringent state-specific rules for production, marketing, and distribution of alcohol; susceptible to changes in license authorizations.

Taxation Policy Impact

Industry faces high taxes and duties that vary significantly across states, adding operational complexity.

⚠️ Risk Analysis

Key Uncertainties

Regulatory changes in state liquor policies and volatility in grain prices are primary risks that could impact profitability by over 10-15% based on historical margin sensitivity.

Geographic Concentration Risk

High concentration in Uttar Pradesh, making the company vulnerable to state-specific policy shifts.

Third Party Dependencies

Significant dependency on bottling agreements with major players like United Spirits Limited.

Technology Obsolescence Risk

Management is increasingly automating systems and processes to enhance accountability.

Credit & Counterparty Risk

Adequate liquidity with GCA of INR 39.54 Cr in FY25 against debt obligations of INR 7.72 Cr.