Allied Blenders and Distillers (ABDL) Q1 25/26 earnings summary

Executive summary

• Achieved fourth consecutive quarter of profitable growth, with PAT up 398.6% year-over-year and EBITDA up 56.4% year-over-year, driven by premiumization, cost control, and operational efficiency.

• Prestige & Above (P&A) portfolio led growth, with volume up 46.9% and sales up 50.5% year-over-year.

• Expanded international presence to 27 countries, with new launches in super-premium and luxury segments.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved and published, with no qualifications in the review reports.

• Completed IPO in July 2024, with all proceeds fully utilized by March 2025.

Financial highlights

• Q1 FY26 income from operations rose 22.5% year-over-year to INR 930 crore; total volume up 17.2% to 8.5 million cases.

• EBITDA margin improved to 12.8% from 10% year-over-year; gross margin up 448 bps to 43.2%.

• PAT surged to INR 56 crore, up fivefold year-over-year, supported by EBITDA growth and lower interest expenses.

• Standalone revenue for Q1 FY26 was ₹177,194.07 lakhs, with standalone PAT at ₹6,091.09 lakhs.

• Net debt reduced to INR 754 crore as of June 2025, with Net Debt/EBITDA at 1.5x and Net Debt/Equity at 0.47x.

Outlook and guidance

• Targeting 50% P&A volume share in the next three years, with current share at 46%.

• EBITDA margin expected to rise to 15% over the next three years, driven by FTA and backward integration.

• Full margin benefits from backward integration to accrue by Q4 FY 2027, with partial benefits starting from Q2 FY 2026.

• Continued investment in brand building, tech infrastructure, and premium/luxury portfolio factored into margin guidance.

• Regulatory environment and input costs expected to remain stable; UK FTA anticipated to be margin accretive.