Allied Blenders and Distillers (ABDL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong operational performance, with total income rising 15.5% sequentially and 12.9% year-over-year, driven by festive demand, premiumization, and operational efficiencies.

• EBITDA increased 14% sequentially and 94.7% year-over-year to ₹120 Cr, with PAT up 20.8% sequentially, reflecting improved margins and cost efficiencies.

• Volume growth was robust at 7.1% quarter-on-quarter and 11.3% year-over-year, with 8.9 million cases sold.

• Board approved acquisition of Woodburns whisky and investment in Rock Paper Rum, expanding the premium and luxury portfolio.

• Equity shares listed on NSE and BSE on July 2, 2024, following IPO.

Financial highlights

• Total income: ₹2,346 Cr, up 15.5% QoQ and 12.9% YoY; income from operations: ₹977 Cr, up 12.4% QoQ and 8.9% YoY.

• EBITDA: ₹120 Cr, up 14% QoQ and 94.7% YoY; PAT: ₹57 Cr, up 20.8% QoQ and a turnaround from a loss in Q3 FY24.

• Gross margin improved to 42.8% in Q3 FY25, up from 35.3% YoY.

• Standalone Q3 FY25 net profit: ₹5,837 lakhs vs net loss of ₹367 lakhs in Q3 FY24; consolidated Q3 FY25 net profit: ₹5,747 lakhs vs net loss of ₹442 lakhs in Q3 FY24.

• Realization per case improved 3.8% QoQ to ₹1,036.

Outlook and guidance

• Growth momentum expected to continue, supported by positive consumer sentiment, premiumization, and experience-driven consumption in P&A category.

• Input costs for grain and ENA expected to remain neutral to soft; glass and PET prices stable.

• Margin improvement targeted through CapEx, premiumization, and cost optimization, aiming for EBITDA margin of 15%+ and gross margin of 40-45%.

• Prudent capital allocation and working capital optimization to enhance ROCE.

• Management expects no material impact from ongoing tax investigation.