Allied Blenders and Distillers (ABDL) Q2 25/26 earnings summary

Executive summary

• Achieved strong growth in Q2FY26 and H1FY26, driven by premiumization, margin expansion, and backward integration initiatives.

• Officer's Choice remains the top mass premium whisky, while ICONiQ White is the fastest-growing global spirits brand.

• Expanded international footprint to 30 countries, with exports profitability 1.3x domestic and working capital 1/3rd of domestic.

• Commissioned PET bottle manufacturing facility in Telangana, expected to add INR 30 crore+ to gross margins and improve supply chain efficiency.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were approved by the Board on 4 November 2025.

Financial highlights

• Q2FY26 income from operations rose 14.4% YoY to INR 995 crore; EBITDA up 23.6% YoY to INR 130 crore; PAT up 32.3% YoY to INR 63 crore; EBITDA margin at 13.1%.

• H1FY26 income from operations up 18.2% YoY to INR 1,925 crore; EBITDA up 37.3% YoY to INR 249 crore; PAT up 102.1% YoY to INR 119 crore.

• Sold 9 million cases in Q2 FY26, up 8.4% YoY, with a 3.8% rise in realization per case.

• Officer's Choice led the mass premium segment, maintaining over 40% gross margin and strong cash flow contribution.

• Operating cash flow for H1 FY26 was INR 147 crore; net debt increased to INR 893 crore due to CapEx, but average borrowing cost fell by 140 bps to 8.2%.

Outlook and guidance

• Management expects profitable growth momentum to continue in H2FY26, supported by festive season demand and stable input costs.

• Revenue growth in mid-teens projected, with P&A (Prestige & Above) volume share to reach or exceed 50% by FY28.

• EBITDA margin targeted to reach ~17% by FY28, with ongoing margin accretive supply chain initiatives.

• Focus remains on margin expansion, working capital optimization, and disciplined capital deployment.

• Management expects no material adjustments from ongoing tax and customer disputes, supported by legal opinions.