ABDL - Allied Blenders

📊 NSE: ABDL 🏢 Breweries & Distilleries 📅 Last Updated: 12/13/2025 18:10

💰 Financial Performance

Revenue Growth by Segment

Consolidated income from operations reached INR 995 Cr in Q2 FY26. Net sales (net of excise) grew 5.76% YoY from INR 3,327.85 Cr in FY24 to INR 3,519.69 Cr in FY25, driven by premiumization efforts.

Geographic Revenue Split

Not disclosed in available documents, though the company operates across open markets (private distributors), part corporation markets, and full corporation markets in India.

Profitability Margins

Net Profit Margin improved significantly from 0.2% in FY24 to 5.7% in FY25. PAT grew by 2,879.8% YoY to INR 200.13 Cr in FY25 from INR 6.72 Cr in FY24 due to operational efficiencies and reduced interest costs.

EBITDA Margin

EBITDA Margin increased to 12.9% in FY25 from 7.5% in FY24, representing a 540 bps improvement. EBITDA grew 80.96% YoY to INR 453.00 Cr.

Capital Expenditure

Capital employed increased by 98.9% YoY to INR 2,357.24 Cr in FY25. Capex is focused on backward integration projects for ENA, Malt, and PET to secure supply chain security and optimize margins.

Credit Rating & Borrowing

Credit ratings were enhanced to A- with a positive outlook. This upgrade allowed access to more economical debt sources, reducing interest costs. Net Debt/EBITDA improved from 3.0x in H1 FY25 to 1.7x in H1 FY26.

⚙️ Operational Drivers

Raw Materials

Key raw materials include ENA (Extra Neutral Alcohol), Malt, and PET for packaging. The company is investing in backward integration for these specific materials to optimize unit economics.

Capacity Expansion

Current capacity not specified, but the company is executing strategic backward integration projects in ENA, Malt, and PET to be completed by FY28 to enhance ROCE.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but backward integration is the primary strategy to mitigate cost volatility and secure supply.

Manufacturing Efficiency

ROCE improved to 16.9% in FY25 from 16.5% in FY24. The company targets a transformation roadmap to further enhance ROCE by FY28 through value-accretive initiatives.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by a 'Build, Buy, Partner' strategy. This includes scaling the ABD Maestro (ABDM) brand, which has an 8x top-line impact for every 1% volume contribution, and partnering with international brands like Russian Standard (current ARR of INR 40 Cr).

Products & Services

Whisky (ICONiQ White, Srishti, ABD Maestro) and Vodka (Russian Standard).

Brand Portfolio

ICONiQ White, Srishti, ABD Maestro, and Russian Standard (India partner).

New Products/Services

ABD Maestro is a key new focus; it is expected to reach significant milestones within 6-8 quarters, with margins 4x-5x higher than typical distributor margins.

Market Expansion

The company is focusing on India's growing premium consumption market, specifically targeting the 'Super-Premium to Luxury' segment by FY28.

Strategic Alliances

Partnered with Russian Standard for India distribution, achieving margins 4x to 5x higher than typical distributor levels.

🌍 External Factors

Industry Trends

The Alcobev industry is evolving toward premiumization. ABD is positioning itself in the 'Super-Premium to Luxury' segment to capture higher value as consumer behavior shifts toward premium consumption.

Competitive Landscape

Key competitors include local brands in specific states and established players in the premium whisky and vodka segments.

Competitive Moat

Moat is built on brand equity (ICONiQ White, Srishti) and backward integration. Backward integration provides cost leadership and supply chain security, which are sustainable advantages in a highly regulated industry.

Macro Economic Sensitivity

Highly sensitive to the festive season, with a positive outlook anticipated for Q3 FY26 due to increased consumer demand.

Consumer Behavior

Shift toward premium consumption is driving the company's 'P&A Salience' (Premium & Above) strategy.

⚖️ Regulatory & Governance

Industry Regulations

The industry is highly regulated with state-specific licensing, taxation, and distribution policies. Changes at the state level can significantly impact business processes.

Taxation Policy Impact

Tax expense grew 545% YoY to INR 70.69 Cr in FY25. The company is subject to state-specific excise and distribution policies.

Legal Contingencies

Income Tax Department search in Dec 2023 led to demand orders in FY25. Subsequent to year-end, the Commissioner of Income Tax (Appeals) stayed 90% of these demands. Management believes no financial statement adjustments are required.