Som Distilleries & Breweries has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026. The filing discloses that beer manufacturing contributed 84.7% of total turnover, while Indian Made Foreign Liquor accounted for the remaining 15.3%.

The report covers consolidated data from three owned plants and five offices across India. Exports constituted a marginal 0.69% of total turnover, with the company serving markets in 22 states and union territories domestically, alongside 18 international countries.

What the Numbers Show

The revenue concentration is heavily skewed toward beer, which dominates nearly five-sixths of the company's business activity. This high dependency on a single product category suggests that operational risks related to raw material sourcing or regulatory changes in the alcohol sector could disproportionately impact overall performance.

Operational Metrics

The company reported a workforce of 695 employees and 495 workers as of March 31, 2026. Permanent employees comprised 460 individuals, while 235 were other than permanent. Among workers, all 495 were classified as other than permanent.

Sustainability & Governance

Som Distilleries & Breweries identified climate change, water stewardship, and energy management as key risks. The company operates breweries with zero-liquid discharge facilities and focuses on water conservation and efficient utilization.

Total energy consumption stood at 231.57 TJ, comprising 90.02 TJ from electricity and 139.8 TJ from fuel. Water withdrawal totaled 592,303 kilolitres, primarily from groundwater sources. The company reported no penalties or fines during the period and confirmed compliance with all applicable environmental regulations.

Som Distilleries & Breweries reported consolidated income of ₹268.8 crore and EBITDA of ₹15.2 crore for the quarter ended June 2026 (Q1FY27). The financial performance was heavily constrained by the regulatory suspension of its Madhya Pradesh brewery, which management estimated cost the company between ₹250 crore and ₹260 crore in potential revenue.

Despite the operational disruption, the company generated approximately ₹28 crore in cash from operations. Gross debt increased by only ₹10 crore during the quarter, with the gross debt-to-equity ratio moving marginally from 0.3x in March 2026 to 0.31x in June 2026. This leverage discipline was maintained even as the company commissioned its new Uttar Pradesh brewery, an investment of close to ₹300 crore funded without external debt.

Operational Highlights

Consolidated volumes stood at 45.79 lakh cases. Beer remained the core earnings engine, accounting for approximately 93% of revenue and 98.9% of total volume, with 45 lakh beer cases sold. On the Indian Made Foreign Liquor (IMFL) side, realizations improved by approximately 3% year-on-year to ₹1,047 per case.

The Madhya Pradesh plant has been suspended for six months. Management disclosed that fixed costs associated with the idle facility, including interest, salaries, and electricity, amount to approximately ₹6 crore to ₹7 crore per quarter. Of this, employee costs attributed to the Bhopal unit stand at ₹5 crore per quarter. The company is absorbing excess manpower into other units rather than cutting salaries.

Recovery and Expansion

Positive trends emerged in other markets. Karnataka saw a 30% increase in cases sold, while Odisha reported a close to 40% increase. Capacity utilization at the Hassan facility was approximately 60%, and the Odisha facility operated at around 70%.

The new Uttar Pradesh brewery commenced commercial production on June 9, adding approximately 10 million cases of annual beer capacity. Management noted that it will take three to four years to achieve peak capacity utilization. Additionally, the company plans to enter the Andhra Pradesh market by the first week of September, following delays in obtaining state permissions.

What the Numbers Show

The divergence between the severe top-line impact and the stable balance sheet signals underlying operational resilience outside the Madhya Pradesh cluster. While the MP shutdown erased roughly 94% of the current consolidated revenue base (₹250-260 crore loss vs ₹268.8 crore reported), the company still generated ₹28 crore in operating cash flow. This indicates that the remaining operational footprint (Karnataka, Odisha, and the new UP unit) maintains strong unit economics and working capital efficiency, allowing the firm to fund significant capex (₹300 crore for UP) without increasing external leverage materially.

Forward Guidance

Management reiterated a full-year FY27 revenue guidance of ₹1,000 crore to ₹1,100 crore. The immediate priorities include restoring normal operations in Madhya Pradesh, ramping up the Uttar Pradesh facility, and sustaining the recovery momentum in Karnataka and Odisha. The company also plans to launch an Indian single malt product before the end of the financial year.