This article first appeared on GuruFocus .
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Revenue:INR 1,004 crores for Q3 FY '26, a 2.8% increase over Q3 FY '25.
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EBITDA:INR 137 crores for Q3 FY '26, a 14.1% year-on-year growth.
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EBITDA Margin:Improved to 13.6% in Q3 FY '26.
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Profit After Tax (PAT):INR 64 crores for Q3 FY '26, a 10.9% year-on-year growth.
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9-Month Revenue:INR 2,929 crores, a 12.4% increase over 9 months FY '25.
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9-Month EBITDA:INR 386 crores, a 28.1% year-on-year growth.
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9-Month EBITDA Margin:Improved to 30.2%.
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9-Month PAT:INR 182 crores, a 57% year-on-year growth.
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Volume Sold:9 million cases in Q3 FY '26, a 1.3% year-on-year increase.
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Officer's Choice Gross Margin:Approximately 45%.
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P&A Portfolio Volume Growth:16.9% year-on-year increase in Q3 FY '26.
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Operating Cash Flow:INR 173 crores generated in Q3 FY '26.
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Net Debt:INR 785 crores as of 31st December '25, reduced from INR 893 crores as of 30th September '25.
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Release Date: January 30, 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 14.1% year-on-year growth in EBITDA for Q3 FY '26, with an improvement in EBITDA margin to 13.6%.
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The company's premiumization strategy is yielding results, with the P&A portfolio showing a 16.9% year-on-year volume growth.
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ICONiQ White continues to be a standout performer, expanding its presence both domestically and internationally, and is on track to reach 10 million cases this financial year.
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The company has successfully expanded its international footprint from 14 to 31 countries over the last 21 months, with plans to reach 35 countries by Q4 FY '26.
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Backward integration initiatives are expected to enhance gross margins by 300 basis points by FY '28, with several projects already on track or completed.
Negative Points
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The mass premium whiskey segment experienced softness, with a 7% decline in Telangana due to changes in licensing and stocking norms.
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Maharashtra's policy-driven price changes have affected consumer affordability and buying behavior, leading to lower consumer offtake.
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Despite overall growth, the mass premium segment saw a 5% decline in volume over the last two quarters.
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The company faces challenges in maintaining growth momentum in the face of increased competition, particularly in the mass premium segment.
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There is a potential risk of further regulatory changes in key markets like Maharashtra, which could impact future performance.
Q & A Highlights
Q: Could you shed some light on what affected our volume in the Telangana market and the outlook for Q4? A: In Q3, the P&A segment grew by 17%, while the mass premium segment declined by 7%. The disruption was due to the rebidding of licenses, which led to a temporary reduction in buying. We expect normalization in Q4, with a return to double-digit growth.
Q: Regarding the CapEx for Minakshi Agro, why was this not initially budgeted, and is it related to Maharashtra Made Liquor (MML) participation? A: The bottling facility at Minakshi Agro will reduce transportation costs and working capital needs. We announced it after receiving approvals. Minakshi has applied for MML participation, which could further enhance growth opportunities.
Q: What is your take on the U.K. FTA delay and the EU deal's impact on imported spirits? A: We expect the India-U.K. FTA to be implemented by Q2. The EU deal is not significant for inbound trade but presents an opportunity for outbound trade, especially for our luxury portfolio.
Q: How do you see the growth trajectory for FY '27, considering the high base and the P&A segment? A: We expect mid-double-digit value growth driven by ABD Maestro's accelerated growth, new launches in the P&A segment, and approvals in the southern market. Our focus is on value growth rather than just volume.
Q: Can you provide an update on the margin guidance and the impact of backward integration projects? A: We have revised our margin guidance to 18% by FY '28, driven by faster gross margin progress and the impact of backward integration projects. The CapEx program will add 300 basis points, with additional benefits from the India-U.K. FTA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
