Allied Blenders & Distillers (ABD), India’s third-largest IMFL company, is shifting focus toward premium customers as mass consumption slows. With prestige and above (P&A) brands driving growth, ABD reported strong margins and double-digit revenue expansion. The company sees premiumisation as the key to sustaining profitability and long-term industry leadership.
India’s alco-bev industry is undergoing a transformation, with consumers increasingly “buying less but better.” Allied Blenders & Distillers (ABD), known for brands like Officer’s Choice and Sterling Reserve, is capitalizing on this trend by leaning heavily on its premium portfolio to offset slowing mass-market demand.
ABD’s Prestige & Above (P&A) segment has grown significantly, contributing over 40% to revenues in FY25 compared to 25% in FY18. In Q2FY26, ABD reported 14.1% year-on-year revenue growth to ₹990.1 crore, driven by a 28% volume surge in premium offerings. Margins improved by 158 basis points to 44.4%, while net profit rose 32% to ₹62.9 crore.
Managing Director Alok Gupta emphasized that premiumisation, margin expansion, and international opportunities such as leveraging the India-UK FTA will fuel ABD’s next phase of growth.
Key Highlights
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Premium push: Prestige & Above brands now contribute over 40% of revenues.
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Financials: Q2FY26 revenue up 14.1% YoY to ₹990.1 crore; PAT up 32% to ₹62.9 crore.
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Margins: Gross margin improved to 44.4%, EBITDA margin at 12.7%.
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Consumer trend: Shift toward premium spirits as mass consumption slows.
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Future strategy: Margin expansion, luxury brand additions, and global market opportunities.
Sources: ICICIdirect, CNBC TV18, Free Press Journal, Business Standard