This article first appeared on GuruFocus .
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Revenue:INR984 crores, up 5.8% year-on-year from INR930 crores in Q1 FY26.
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Total Volume:9 million cases, a growth of 6.2% year-on-year.
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Prestige and Above Portfolio Growth:10.7% increase.
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Gross Margin:Expanded by 277 basis points to 46%.
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Reported EBITDA:INR120 crores, with an EBITDA margin of 12.2%.
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PAT (Profit After Tax):INR45 crores, down from INR56 crores in Q1 FY26.
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Operating Cash Flow:INR174 crores.
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Net Debt:Reduced by INR33 crores to INR947 crores.
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ICONiQ White Volume:3.1 million cases, a 33.8% increase year-on-year.
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International Footprint:Expanded to 39 countries from 36 in the previous quarter.
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Release Date: July 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Allied Blenders and Distillers Ltd ( NSE:ABDL ) reported a 5.8% year-on-year growth in income from operations, reaching INR984 crores.
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The Prestige and Above portfolio grew by 10.7%, outperforming the industry growth in this segment.
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Gross margin expanded by 277 basis points to 46%, supported by favorable input costs and backward integration.
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ICONiQ White, a key brand, delivered a 33.8% growth in Q1 FY27, maintaining its status as the world's fastest-growing millionaire whiskey brand.
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The company expanded its international footprint to 39 countries, reinforcing its position as a leading spirits exporter by volume.
Negative Points
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Profitability was impacted by global supply chain disruptions, with an estimated negative impact of INR24 crores during the quarter.
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PAT decreased to INR45 crores from INR56 crores in Q1 FY26, reflecting a decline in profitability.
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The mass premium and other categories showed modest growth of only 2.3% year-on-year.
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There are ongoing challenges with overdue payments from the Telangana government, amounting to INR200 crores.
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The company faces potential risks from geopolitical developments and near-term input cost volatility, which could affect future margins.
Q & A Highlights
Q: Can you provide insights into the luxury segment, specifically ABD Maestro, and the associated costs and future projections? A: Amar Sinha, Managing Director, explained that the premiumization journey is maturing, with premium brands growing at double-digit rates. ABD Maestro launched 10 brands in FY26 and aims to double its top-line growth in FY27. The costs associated with this segment are expected to stabilize, and the company anticipates value creation and accelerated premiumization.
Q: What is the status of price hikes in Telangana, and how do global supply chain disruptions affect your guidance? A: Amar Sinha stated that discussions with the Telangana government for price increases are ongoing. Despite global supply chain disruptions, the company remains optimistic, expecting these issues to resolve by Q3 FY27. The guidance remains unchanged, with expectations of margin improvements.
Q: What is the overdue amount from the Telangana government, and is there a risk to payments? A: Amar Sinha reported an overdue amount of INR200 crores from the Telangana government. However, recent supplies are being paid within a reasonable timeline, and there is no risk to payments.
Q: What are the plans for relaunching Officer's Choice Blue and Sterling Reserve B7, and how do you address their past performance issues? A: Amar Sinha mentioned that Officer's Choice Blue is being relaunched with new packaging and communication, while Sterling Reserve B7 will undergo a brand reset. These initiatives aim to revitalize the brands and support the premium portfolio.
Q: How do you plan to achieve mid-teens revenue growth given the current portfolio performance? A: Amar Sinha highlighted that despite geopolitical challenges, ABD outperformed the industry in Q1 FY27. The company plans to leverage ICONiQ White's growth, relaunch key brands, and introduce new products like deluxe vodka and premium whiskey to achieve the guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
