Allied Blenders and Distillers (ABDL) Q3 25/26 earnings summary

Executive summary

• Achieved sixth consecutive quarter of strong profit performance post-listing, driven by premiumization, margin expansion, and robust P&A segment momentum.

• Q3 FY26 consolidated income from operations rose 2.8% YoY to INR 1,004 crore (₹193,361.43 lakhs); nine-month income up 12.4% YoY to INR 2,929 crore (₹566,257.88 lakhs).

• EBITDA for Q3 grew 14.1% YoY to INR 137 crore (₹13,691.57 lakhs); PAT up 10.9% YoY to INR 64 crore (₹6,374.10 lakhs).

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

• Expanded international presence from 14 to 31 countries in 21 months, targeting 35 by Q4 FY26.

Financial highlights

• Q3 volume at 9 million cases, up 1.3% YoY; realization per case improved 0.7% due to better mix and selective price increases.

• P&A portfolio volume grew 16.9% YoY, increasing segment salience to 48.5% from 42% YoY.

• EBITDA margin improved to 13.6% in Q3 FY26; gross margin rose to 46.3% (up 351 bps YoY).

• Operating cash flow in Q3 was INR 173 crore; net debt reduced to INR 785 crore from INR 893 crore sequentially.

• Free cash flow led to net debt reduction by ₹108 crore in Q3 FY26.

Outlook and guidance

• Targeting double-digit sales growth in Q4, with normalization in Telangana and stable modeling in Maharashtra.

• FY27 to see continued value growth from luxury portfolio, new launches in P&A brandy and vodka, and expansion in southern markets.

• Margin guidance revised to 17%-18% by FY28, with further upside from phase II CapEx and UK FTA.

• Expecting mid-double-digit value growth and early double-digit volume growth overall.

• Management expects no material impact from ongoing tax litigation or customer claims.