Som Distilleries & Breweries reported a sharp contraction in profitability for FY26, with consolidated net profit after tax (PAT) falling 90% year-on-year to ₹103.6 crore. The decline was primarily driven by regulatory disruptions at its key manufacturing facility in Bhopal and lower overall volumes.

Financial Performance

The company’s total income decreased 14.8% to ₹2,305.8 crore from ₹2,835.2 crore in the previous fiscal year. EBITDA contracted significantly by 56.8% to ₹78.0 crore, reflecting severe operating deleverage as fixed costs remained high amidst reduced production levels.

Profit before tax dropped to ₹226.4 crore from ₹1,436.8 crore. An exceptional item of ₹118.7 crore, related to a customs duty demand on earlier imports, further weighed on the bottom line.

Operational Headwinds

Total volume declined 17.7% to 202.2 lakh cases. Beer volumes, which constitute the bulk of the business, fell 20.1% to 187.2 lakh cases. However, the Indian Made Foreign Liquor (IMFL) segment showed resilience, growing 31.8% to 15.0 lakh cases.

The most material operational event was the suspension of the manufacturing license at the Bhopal plant effective February 4, 2026. This disruption halted production for the final two months of the financial year, directly impacting fourth-quarter volumes and profitability. Management attributed the sharp deterioration in Q4 performance largely to this license issue, compounded by weakness in the Karnataka market and higher input costs.

Strategic Developments

Despite near-term challenges, the company continued investing in long-term capacity. Commercial production commenced at its new greenfield brewery in Uttar Pradesh during Q1 FY27. Additionally, the Odisha facility was expanded from 60 lakh to 90 lakh cases annually to strengthen presence in eastern markets.

What the Numbers Show

The disproportionate decline in EBITDA relative to revenue highlights the impact of lower capacity utilization. While revenue fell nearly 15%, EBITDA dropped over 56%, indicating that fixed costs were not adequately absorbed due to the production halt. This operating leverage risk remains until the new Uttar Pradesh capacity ramps up and the Bhopal license is resolved.

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.