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.

Som Distilleries & Breweries Limited reported a severe contraction in profitability for the quarter ended June 30, 2026, with consolidated net profit falling 96.28% year-on-year to ₹1.56 crore from ₹42.06 crore in Q1FY26. The sharp decline was driven by a 31.35% drop in consolidated revenue from operations to ₹609.19 crore, while EBITDA crashed 78.68% to ₹15 crore, compressing the margin to 2.46% from 7.95%. These results were approved by the Board of Directors on August 11, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The standalone performance reflected an even steeper decline, with net profit dropping 95.98% to ₹1.52 crore from ₹37.83 crore. Standalone revenue from operations plummeted 90.68% to ₹38.93 crore from ₹417.64 crore in the prior year period. Statutory auditors AKB Jain & Co., led by partner Rahul Dewani, issued an unmodified review report on both standalone and consolidated results, confirming compliance with Ind AS 34 and Regulation 33 of the Listing Regulations.

Financial Performance Overview

The following table details the key financial metrics for Q1FY27 compared to Q1FY26:

EBITDA performance further highlights the operational pressure:

Operational Context and Volume Decline

State excise duties constituted a significant cost burden, accounting for ₹340.56 crore of total consolidated expenses. A critical factor impacting operations is the ongoing renewal process for the manufacturing licence at the Bhopal plant, conducted pursuant to an order from the Madhya Pradesh High Court. This temporary license-related disruption materially reduced operating volumes, lowering operating leverage and amplifying the impact on EBITDA and PAT.

Total volume for the quarter fell 48% year-on-year to 45.79 lakh cases. Beer volumes, which represent the core earnings engine, declined 47% to 45.00 lakh cases, while IMFL volumes dropped 88% to 0.51 lakh cases. Beer represented 98.90% of total volume and 93.29% of revenue in Q1FY27. Realization per case for beer fell 2.1% to ₹554 from ₹566 in Q1FY26, whereas IMFL realization rose 3.0% to ₹1,047 from ₹1,016.

Strategic Developments and Recovery Signals

Despite the headwinds, the company reported positive developments in other markets. Karnataka delivered a strong rebound in demand and market share, with brands like Sunny Beaches showing encouraging traction. Odisha also demonstrated a strong recovery, reinforcing confidence in the underlying distribution network. Management stated that no material uncertainty exists regarding the company's ability to continue as a going concern.

A major strategic milestone was achieved with the commencement of commercial production at the Woodpecker Green Agri facility in Uttar Pradesh. This new platform adds 10 million cases of annual beer capacity, bringing the company's total installed beer capacity to 48.2 million cases across four locations: Bhopal, Hassan, Odisha, and Uttar Pradesh. The IMFL installed capacity stands at 5.1 million cases.

Balance Sheet and Leverage

Balance-sheet leverage remained broadly stable during the quarter. Gross debt increased by ₹10 crore, but the gross debt-to-equity ratio moved only marginally from 0.30x as of March 2026 to 0.31x as of June 2026. The company emphasized that capacity was added without a material step-up in leverage, maintaining a focus on operational recovery and asset utilization.

What the Numbers Show

The divergence between standalone and consolidated revenue declines is notable. While consolidated revenue fell by over 31%, standalone revenue contracted by nearly 91%, indicating that subsidiaries—Woodpecker Distilleries & Breweries Private Limited, Som Distilleries and Breweries Odisha Private Limited, and Woodpecker Greenagri Nutrients Private Limited—generated the majority of revenue. The compressed EBITDA margin of 2.46% against 7.95% in the prior year suggests that cost pressures did not ease proportionately with the revenue decline. Other income remained negligible at ₹0.23 crore (consolidated) and ₹7.05 crore (standalone), failing to offset the drop in core operating profits.

Earnings Call Details

Som Distilleries & Breweries will host an earnings conference call on Thursday, August 13, 2026, at 2:00 PM IST. Diwakaran Suryanarayana, Chief Operating Officer, and Nakul Sethi, Director of Finance & Strategy, will lead the discussion. Investors can join via universal dial-in numbers (+91 22 6280 1106 / +91 22 7115 8007). The call aims to provide clarity on operational outcomes amidst the current regulatory environment.