Monika Alcobev - Monika Alcobev

📊 BSE: 544451 🏢 Breweries & Distilleries 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew by 24.81% YoY to INR 236.15 Cr in FY25 from INR 189.20 Cr in FY24. In H1 FY26, revenue reached INR 119.32 Cr, representing a 41.1% YoY increase from INR 84.56 Cr, driven by geographic diversification and the addition of new premium brands.

Geographic Revenue Split

The company is geographically diversified across 20+ states including Maharashtra, Karnataka, Goa, Haryana, Telangana, and Rajasthan. It operates through 20 distributors covering 5,402 touchpoints as of March 2025.

Profitability Margins

PAT margins improved from 8.68% in FY24 to 9.70% in FY25 (INR 23.11 Cr). For H1 FY26, the PAT margin stood at 8.4% (INR 9.97 Cr), showing a 99.9% YoY growth in absolute profit terms due to higher scale and pricing flexibility.

EBITDA Margin

EBITDA margin improved to 19.56% in FY25 (INR 46.20 Cr) from 16.99% in FY24. However, H1 FY26 EBITDA margin was 16.8% (INR 20.05 Cr), reflecting a 33.9% YoY increase in absolute EBITDA despite a slight margin compression from the FY25 peak.

Capital Expenditure

The company has no major planned capex. A term loan taken in FY25 for a new office was pre-paid using IPO proceeds. Most capital is directed toward working capital to support a 41% revenue growth trajectory.

Credit Rating & Borrowing

Upgraded to IVR BBB/Stable (Long Term) and IVR A3+ (Short Term) in September 2025. Interest coverage ratio stood at 2.63x in FY25, while H1 FY26 finance costs were INR 8.70 Cr, up 11% YoY.

⚙️ Operational Drivers

Raw Materials

Imported alcoholic beverages (finished goods) constitute the primary cost, with Cost of Goods Sold (COGS) at INR 72.18 Cr in H1 FY26, representing 60.5% of total income.

Import Sources

Products are sourced globally from countries including Spain (Licor 43), Mexico (Jose Cuervo), Ireland (Bushmills), and France (Laurent-Perrier).

Key Suppliers

Key global manufacturing principals include Belenkya, Jose Cuervo, Bushmills, Laurent-Perrier, Templeton Rye, and Diplomatico Reserva.

Capacity Expansion

As a distribution-led marketing company, expansion is measured by reach; the network grew to 20+ states and 5,402 touchpoints by FY25, supported by a 100+ member sales team.

Raw Material Costs

COGS increased by 41.0% YoY in H1 FY26 to INR 72.18 Cr, perfectly mirroring the 41.1% revenue growth, indicating stable procurement costs relative to sales.

Manufacturing Efficiency

Not applicable as a trader; however, operational efficiency is reflected in a high net realization of INR 17,017 per case in the premium segment.

Logistics & Distribution

Distribution is managed through 20 distributors and a 100+ member on-ground sales team targeting retail and digital channels.

📈 Strategic Growth

Expected Growth Rate

41.1%

Growth Strategy

Growth is driven by the utilization of INR 100.14 Cr in IPO proceeds for working capital, enabling the company to scale inventory for new geographies and launch premium products like Licor 43. The strategy focuses on the 'premiumization' trend where imported spirits dominate the high-MRP segment.

Products & Services

Premium and luxury alcoholic beverages including wine, spirits, champagne, tequila, whiskey, vodka, rum, and gin.

Brand Portfolio

Belenkya, Jose Cuervo, Bushmills, Laurent-Perrier, Templeton Rye, Diplomatico Reserva, and Licor 43.

New Products/Services

Recently launched Licor 43, Spain's highest-selling liqueur, to capture the growing luxury liqueur market.

Market Expansion

Expanding deeper into 20+ states and targeting the 'Premium and Above' spirits market, which is projected to grow from INR 6,722 Cr in 2024 to INR 33,013 Cr by 2029.

Market Share & Ranking

Leading player in the imported spirits sector; imported (BIO) spirits capture 68% of the market share in the >INR 1,000 MRP category.

Strategic Alliances

Holds exclusive selling rights for more than 70 renowned global brands for India and the Indian Subcontinent.

🌍 External Factors

Industry Trends

The industry is shifting toward 'premiumization,' with the luxury segment (MRP >2,000) seeing the highest growth in new launches.

Competitive Landscape

Competes with established domestic players and other importers; however, incumbents benefit from economies of scale that new entrants find difficult to match.

Competitive Moat

Moat is built on exclusive long-term contracts with global principals and high entry barriers created by complex, state-specific regulatory compliance and high upfront costs.

Macro Economic Sensitivity

Highly sensitive to GDP growth and urbanization; the imported spirits market is expected to grow at a high CAGR as India's LDA (Legal Drinking Age) population and women's involvement in the workforce increase.

Consumer Behavior

Increasing consumer preference for premium imported brands over domestic spirits, fueled by rising disposable income and changing social demographics.

Geopolitical Risks

Susceptible to trade barriers or import duty changes on luxury goods from sourcing regions like Europe and North America.

⚖️ Regulatory & Governance

Industry Regulations

Highly regulated by state governments with fragmented excise policies, licensing structures, and strict prohibitions on direct advertising across television and print.

Taxation Policy Impact

Subject to high and variable state excise duties; any adverse change can weaken profitability. The company currently benefits from pricing flexibility on imported products to offset tax impacts.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the working capital intensive nature of operations, with GCA days at 392 in FY24, driven by high inventory and long receivable cycles from state corporations.

Geographic Concentration Risk

While diversified across 20+ states, the company remains vulnerable to sudden changes in excise policy in major revenue-contributing states like Maharashtra or Karnataka.