High Spirits at Allied Blendes & Distillers: Q1 Net Profit Jumps 5-Fold as Premium Brands Dominate

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In a robust start to FY26, Allied Blenders and Distillers (ABD), the largest domestic spirits player by volume in India, has declared its unaudited financial results for the quarter ending June 30, 2025. Marking its fourth consecutive quarter of double-digit growth post-IPO, the company has notched significant upticks in profits, sales, and margins—underscoring its successful strategy of prioritizing profitable volume growth and the premiumization of its brand portfolio.

Key Highlights of Q1 FY26 Results

Consolidated income from operations rose 22.5% year-on-year to Rs 930 crore, compared to Rs 759 crore in Q1 FY25.
Quarterly EBITDA stood tall at Rs 119 crore, registering a healthy 56.4% growth over Rs 76 crore in the same period last year. The EBITDA margin expanded to 12.8% from 10% previously—a 277 basis point improvement.
Consolidated net profit (PAT) soared to Rs 56 crore, a staggering 5x increase against last year’s Rs 11 crore.
Total volumes reached 8.5 million cases in Q1 FY26, up 17.2% from 7.3 million cases in Q1 FY25, driven by high demand across regions for core brands.

Progressive Premiumization

The company’s fast-expanding Prestige & Above (P&A) segment continues to gain momentum:
P&A volume salience increased to 46.2% in Q1 FY26 (vs. 36.9% in Q1 FY25). Value salience rose to 55.8% from 46.1% one year ago.
ICONiQ White, ABD’s flagship premium label, maintained its title as the world’s fastest-growing millionaire spirits brand for CY2023 and CY2024, showing robust traction across national markets.
The launch of Golden Mist signals ABD’s foray into the prestigious and growing brandy segment, further diversifying its product basket.

Operational Excellence and Strategic Investments

The company highlighted enhanced margins through continued investment in backward integration, especially after acquiring and upgrading distillery assets. These measures have helped bring down raw material procurement costs and strengthen supply chain efficiency.
Operating expenses remain well-managed despite volume growth, contributing to margin expansion and operational leverage.
Following persistent working capital headwinds due to delayed receivables from Telangana in FY24, the company saw resolution from September 2024 onward. This allowed ABD to bounce back with a healthy revenue growth trajectory well into Q1 FY26.

Management Perspective

ABD’s Managing Director, Alok Gupta, attributed the sustained momentum to a sharp focus on premiumization, volume growth, and prudent investment.
The management reaffirmed its commitment to enhancing customer value and maintaining growth in a competitive marketplace.

Important Metrics

Total income: Rs 1,783 crore (up 0.8% year-on-year)
Income from operations: Rs 930 crore (22.5% YoY growth)
EBITDA: Rs 119 crore (56.4% YoY growth)
Net profit (PAT): Rs 56 crore (398.6% YoY growth)
EBITDA margin: 12.8% (up from 10.0%)
Volume: 8.5 million cases (up 17.2% YoY)
Prestige & Above value share: 55.8% in Q1 FY26

Segment Insights and Brand Moves

Demand for premium and prestige offerings continues to outperform, with volume share for these lines growing quarter-on-quarter.
ICONiQ White’s across-market expansion cements ABD’s lead in the millionaire spirits category.
The company’s venture into new categories, notably premium brandy, is forecast to bolster future growth and diversify revenue streams.

Outlook

As India’s organized spirits market continues its momentum, ABD’s premium focus, operational efficiency, and new brand launches position it for continued outperformance in coming quarters. With ongoing investments in backward integration and a sharpened premium portfolio, Allied Blenders and Distillers eyes sustained improvements in both margin and market share.

Source: Official press release, Allied Blenders and Distillers Q1 FY26 results