Shri Gang Industries and Allied Products Limited has demonstrated strong operational performance in Q3 FY26, showcasing the benefits of its integrated alcobev manufacturing strategy and strategic partnership with global spirits leader Diageo. The company's investor presentation highlights significant progress across key financial and operational metrics.

Financial Performance Overview

The company delivered impressive quarterly results with net revenue reaching ₹114 crore in Q3 FY26, representing a substantial 28% increase compared to ₹89 crore in Q3 FY25. Sequential growth was even more pronounced, with revenue jumping 33% from ₹86 crore in Q2 FY26.

Profitability metrics showed significant improvement, with gross profit margin expanding to 37% in Q3 FY26 from 30% in the previous year, while EBITDA margin strengthened to 19% compared to 16% in Q3 FY25.

Nine-Month Performance Analysis

For the nine-month period ending December 2025, the company reported net revenue of ₹286 crore compared to ₹266 crore in 9M FY25, reflecting an 8% year-on-year growth. However, margin pressures were evident with EBITDA declining to ₹31 crore from ₹45 crore in the corresponding previous period.

Strategic Partnership and Manufacturing Capabilities

The company's exclusive manufacturing partnership with United Spirits Limited (Diageo) remains a cornerstone of its growth strategy. This long-term agreement covers production of premium IMFL and Scotch brands including Signature, McDowell's No.1, Royal Challenge, Antiquity Blue, VAT 69, Black Dog, Black & White, and Smirnoff Vodka for the Uttar Pradesh market.

Key operational highlights include:

• Manufacturing Capacity: 5.60 million cases annually with 10 bottling lines
• Diageo Commitment: 75% of bottling capacity dedicated to Diageo brands
• Distillery Expansion: Grain-based distillery capacity increased from 55 KLPD to 66 KLPD in 2025
• Integration Benefits: Fully integrated operations from ENA production to finished bottling

Growth Trajectory and Market Position

The company has demonstrated remarkable growth momentum since establishing its alcobev operations, with revenue CAGR of 59% and PAT CAGR of 84% from FY22 to FY25. The strategic location in Uttar Pradesh provides significant advantages, being situated in India's maize and rice belt while serving the country's largest and fastest-growing alcohol market.

Strategic Expansion Plans

The company is evaluating several growth initiatives including capacity expansion from 5.60 million cases to 10 million cases, phased distillery expansion to meet captive consumption needs, and discussions with third-party brands for contract manufacturing opportunities. The management is also exploring brand acquisition opportunities in the UPML/IMFL segments to strengthen its own brand portfolio, which currently includes "Golden Cascade" and "Bulldozer" in the UPML segment.

Financial Stability and Balance Sheet Strength

The company has significantly improved its financial position, with net worth turning positive in FY25 driven by consistent operational profitability. The debt-to-EBITDA ratio has improved dramatically from 14.50x in FY22 to 1.70x in FY25, while the company continues to generate annual cash profits exceeding ₹30 crore over the last two years. Promoter commitment remains strong with capital infusion through warrant subscription in FY26, demonstrating long-term confidence in the business prospects.

Source: None/Company/INE241V01018/20896486-85dc-4a06-b228-f2266ab6f417.pdf

Shri Gang Industries and Allied Products Limited has announced a strategic partnership with Tilaknagar Industries Limited through lease and manufacturing agreements signed on March 12, 2026. The agreements focus on bottling Indian Made Foreign Liquor (IMFL) brands at Shri Gang Industries' manufacturing facility in Uttar Pradesh.

Agreement Details and Structure

The company has disclosed the partnership under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The manufacturing operations will be conducted at Shri Gang Industries' plant situated at Plot No B-2/6, B-2/7, UPSIDC Industrial Area- Phase IV, Sandila, District Hardoi, U.P.- 241204.

Business Expansion Strategy

The purpose of entering into this agreement is to expand Shri Gang Industries' business through bottling operations for Tilaknagar Industries Limited's IMFL brands. This contract manufacturing arrangement allows the company to utilize its existing production capacity while diversifying its revenue streams through partnerships with established liquor brands.

Regulatory Compliance and Relationship Status

The company has confirmed that this transaction does not fall within related party transactions as defined under SEBI Listing Regulations. The disclosure follows compliance requirements under SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026.

Agreement Timeline and Validity

The agreements will become effective from April 01, 2026, and will remain valid for a five-year period ending March 31, 2031. This extended timeline provides both companies with operational stability and long-term business planning opportunities for the IMFL bottling operations.

The disclosure was signed by Kanishka Jain, Company Secretary and Compliance Officer, ensuring proper regulatory compliance with SEBI requirements for material agreements and business developments.