Allied Blenders and Distillers (ABDL) Q1 26/27 earnings summary

Executive summary

• Entered FY 2027 with a stronger portfolio, sharper operating model, and focus on premiumization-led growth, consumer engagement, disciplined execution, backward integration, and prudent capital allocation.

• Q1 FY 2027 saw income from operations rise 5.8% year-over-year to ₹984 Cr, driven by volume growth in both Prestige & Above (P&A) and Mass Premium segments.

• Premiumization remains central, with Prestige & Above segment contributing 48.2% of volumes and 59.3% of value, up from 46.2% and 55.8% year-on-year.

• ICONiQ White delivered 3.1 million cases, up 33.8% year-on-year, and remains the world's fastest-growing millionaire whisky brand.

• The Board approved and completed the acquisition of UTO Asia Pte. Ltd. and Kion Blenders Industries Private Limited, expanding the Group's international and domestic footprint.

Financial highlights

• Income from operations at INR 984 crore, up 5.8% year-on-year from INR 930 crore.

• Total volume at 9 million cases, up 6.2% year-on-year.

• Gross margin expanded by 277 bps to 46%; would have been 48.4% excluding supply chain disruptions.

• Reported EBITDA at INR 120 crore (margin 12.2%); like-to-like EBITDA would have been INR 144 crore (margin 14.7%).

• PAT at INR 45 crore, down from INR 56 crore due to INR 24 crore supply chain impact; like-to-like PAT would have been INR 63 crore.

• Operating cash flow at INR 174 crore in Q1 FY 2027.

• Earnings per share (basic and diluted) for Q1 FY27 stood at ₹1.76, versus ₹2.02 in Q1 FY26.

Outlook and guidance

• Top-line expected to grow in line with mid-teens guidance, with potential to move to high teens.

• FY 2027 EBITDA margin expected to be broadly in line with FY 2026; targeting 18% margin in two years.

• Growth to be driven by ICONiQ White, relaunches of Officer's Choice Blue and Sterling Reserve B7, new launches in vodka and premium whisky, and continued premiumization.

• Backward integration and CapEx to support margin expansion by 300 bps by FY 2028 and 100 bps more by FY 2029.

• UK FTA anticipated to be margin accretive, improving luxury portfolio accessibility.