Som Distilleries & Breweries has scheduled a board meeting on September 5, 2026 to consider issuing convertible equity warrants and shares to promoters and other investors on a preferential basis.

Board meeting agenda

The board will deliberate on the proposed preferential allotment of convertible equity warrants and shares. The issuance is intended for promoters as well as other investors, subject to board approval and shareholder consent.

Preferential allotments of convertible instruments are a common route for companies to raise capital from select investors, including existing promoters, outside the open market. The final terms of the issuance, including pricing and quantum, are subject to board deliberation and applicable regulatory requirements.

The meeting will also fix the day, date, time, and venue for the company's 33rd Annual General Meeting (AGM) and approve the notice for the AGM. Additionally, the board will approve the Annual Report for the financial year ended March 31, 2026, and fix the record date or book closure period.

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the trading window for designated persons, including their immediate relatives and other insiders, is closed from September 1, 2026. It will remain closed until 48 business hours after the conclusion of the board meeting.

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.