Allied Blenders & Distillers Limited announced on August 3, 2026, that it has received the certified copy of the final order from the Hon'ble National Company Law Tribunal, Hyderabad Bench, sanctioning the Scheme of Amalgamation (Merger by Absorption) of its two wholly owned subsidiaries — Deccan Star Distilleries India Private Limited (Transferor Company 1) and Sarthak Blenders & Bottlers Private Limited (Transferor Company 2) — with and into Allied Blenders and Distillers Limited (the Transferee Company). The certified copy was received at 16:23 P.M. (IST) on August 3, 2026, and the scheme will become effective upon filing of this certified copy with the Registrar of Companies.

Key Milestones in the Amalgamation Process

The NCLT Hyderabad Bench concluded the final hearing on July 24, 2026, and reserved the scheme for final orders. The order was subsequently issued on July 28, 2026. This disclosure was made under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and is in continuation of earlier intimations dated November 4, 2025 and November 17, 2025. The scheme was filed under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013.

About the Entities Involved

Deccan Star Distilleries India Private Limited, incorporated on October 29, 2013, in the then State of Andhra Pradesh, is primarily engaged in the manufacturing and selling of alcoholic beverages. Its registered office is located at H.No.1-11-220/2, Sreenivasam, First Floor, Brundavan Colony Begumpet, Hyderabad, Telangana — 500016. Sarthak Blenders & Bottlers Private Limited, incorporated on May 9, 2011, is primarily engaged in the business of bottling alcoholic beverages and liquids, with its registered office at 394-C, Lamington Chambers Near Naaz Cinema, Lamington Road, Mumbai, Maharashtra — 400004. Both transferor companies are wholly owned subsidiaries of Allied Blenders and Distillers Limited.

The share capital details of the entities as on September 30, 2025, are as follows:

Rationale for the Scheme

The primary objective of the amalgamation is to reduce the number of group entities and create a more administratively efficient structure. The management of the respective companies cited the following key benefits:

• Simplification of group structure and reduction of legal and regulatory compliance obligations across multiple entities
• Elimination of managerial overlaps involved in running separate companies
• Consolidation of functions and related operations to achieve economies in costs
• Elimination of administrative duplications in record-keeping and other functions, thereby reducing administrative, managerial, and common costs

Accounting Treatment and Scheme Provisions

Upon the scheme becoming effective, Allied Blenders and Distillers Limited will account for the amalgamation using the pooling of interest method as prescribed under Appendix C — "Business combination of entities under common control" of the Indian Accounting Standard (Ind AS) 103, 'Business Combinations', as notified under Section 133 of the Companies Act, 2013. Since the transferor companies are wholly owned subsidiaries of the transferee company, no new shares will be issued pursuant to the scheme, and no valuation report from a registered valuer was required. The shares held by the transferee company in the transferor companies shall stand cancelled upon the scheme becoming effective.

The entire undertakings of the transferor companies — including all assets, liabilities, rights, interests, licenses, permits, contracts, employees, and obligations — shall stand transferred to and vest in Allied Blenders and Distillers Limited as a going concern. The transferor companies are to be dissolved without going through the process of winding up. The NCLT also directed the petitioner company to comply with all observations raised by statutory authorities, preserve books of accounts and records as per Section 239 of the Companies Act, 2013, and file the certified copy in Form INC-28 with the Registrar of Companies within 30 days of receipt of the certified order.

Allied Blenders & Distillers Limited (ABD) reported a 5.8% year-on-year rise in consolidated income from operations to ₹984 crore for the first quarter of fiscal year 2027 (Q1FY27), driven by robust volume growth in its Prestige & Above portfolio. The Mumbai-based spirits major delivered total volume growth of 6.2% to 9 million cases, outperforming the broader industry which saw low single-digit growth. This performance underscores the company’s successful premiumization strategy, anchored by the rapid scale-up of its flagship brand, ICONiQ White.

The earnings conference call, held on July 24, 2026, was moderated by Antique Stock Broking Limited. Management, including Managing Director Amar Sinha and Chief Financial Officer Ramakrishnan Ramaswamy, highlighted that while reported profitability was impacted by temporary global supply chain disruptions, underlying operational metrics showed significant strength. The transcript of the proceedings was filed with the Bombay Stock Exchange (BSE) and National Stock Exchange of India Limited (NSE) on July 31, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance and Margins

ABD’s gross margin expanded by 277 basis points to 46% in Q1FY27, supported by favorable input costs and early benefits from backward integration initiatives. Reported EBITDA stood at ₹120 crore, a marginal increase from ₹119 crore in Q1FY26, with an EBITDA margin of 12.2%. However, net profit after tax (PAT) declined to ₹45 crore from ₹56 crore in the corresponding period last year, primarily due to an estimated ₹24 crore impact from global supply chain disruptions.

On a like-to-like basis, excluding these disruptions, gross margin would have expanded by 522 basis points to 48.4%. Adjusted EBITDA would have risen 21.4% year-on-year to ₹144 crore with a margin of 14.7%, while adjusted PAT would have grown 13.6% to ₹63 crore. Operating cash flow generation remained strong at ₹174 crore, enabling the company to reduce net debt by ₹33 crore to ₹947 crore as of June 30, 2026.

*Volume figures derived from stated growth rates.

Portfolio Dynamics and Brand Momentum

The Prestige & Above segment, which contributed 48.2% of volumes and 59.3% of value, grew 10.7% year-on-year, significantly outpacing the Mass Premium segment’s 2.3% growth. ICONiQ White emerged as the primary growth engine, delivering 3.1 million cases in the quarter, up 33.8% from 2.3 million cases in Q1FY26. The brand has now achieved monthly sales exceeding 1 million cases and is recognized as the world’s fastest-growing millionaire whisky brand for three consecutive years.

In the Mass Premium category, Officer’s Choice remains a key cash flow generator and India’s top exported whisky brand. Meanwhile, the super-premium ABD Maestro portfolio, launched in FY26 with 10 brands, is expanding its distribution footprint to over 5,500 premium touchpoints across India and six international markets. Management indicated that ABD Maestro’s turnover, which was approximately ₹40 crore in FY26, is expected to double in FY27.

Strategic Outlook and Backward Integration

Looking ahead, ABD maintains its guidance for mid-teens revenue growth in FY27, with potential to reach high-teens given favorable market dynamics. The company anticipates margin benefits of 70–80 basis points in FY27 and 130–140 basis points in FY28 from the India-UK Free Trade Agreement. Backward integration remains a core pillar, with the PET bottles facility at Rangapur already accretive and a new malt distillery expected to become operational in H1FY27. These investments are projected to contribute approximately 300 basis points to margin expansion by FY28.

Management also outlined plans for brand resets, including revamped packaging for Officer’s Choice Blue in Q3FY27 and Sterling Reserve B7 in Q4FY27, alongside new launches in the deluxe vodka and premium whisky segments in H2FY27. International exports continue to be a high-profitability, asset-light model, with ABD expanding its footprint to 39 countries in Q1FY27.