Allied Blenders & Distillers Limited (ABD), India's largest domestic spirits company by volume, has announced a significant corporate restructuring move. The company's Board of Directors has approved a scheme of amalgamation to merge two of its wholly-owned subsidiaries into the parent company.

Key Details of the Merger

• Subsidiaries Involved: Deccan Star Distilleries India Private Limited (DDPL) and Sarthak Blenders & Bottlers Private Limited (SBBPL)
• Appointed Date: April 1, 2025
• Asset Transfer: All assets and liabilities of the subsidiaries will be transferred at their carrying values
• Share Allotment: No equity shares will be allotted as consideration, as both are wholly-owned subsidiaries

Rationale Behind the Merger

The amalgamation aims to achieve several strategic objectives:

1. Reduce the number of entities within the group
2. Simplify the overall group structure
3. Reduce legal and regulatory compliance requirements
4. Eliminate administrative duplications

Business Operations of Merging Entities

• Allied Blenders and Distillers Limited: Manufactures, purchases, and sells alcoholic beverages
• Deccan Star Distilleries India Private Limited: Currently non-operating
• Sarthak Blenders & Bottlers Private Limited: Handles bottling operations

Financial Implications

The merger is expected to provide economies of scale by combining functions and related operations. This consolidation may lead to cost reductions in administrative, managerial, and other common expenses.

Regulatory Aspects

• The scheme is exempt from stock exchange no-objection requirements
• The transaction will not alter the shareholding pattern of the listed entity (ABD)
• The merger is subject to regulatory and other necessary approvals

Outlook

This strategic move by Allied Blenders and Distillers Limited aligns with industry trends towards operational efficiency and streamlined corporate structures. As the Indian alcoholic beverage market continues to evolve, such consolidations may enhance ABD's competitiveness and financial performance.

Allied Blenders & Distillers Limited (ABD), India's largest domestic spirits company by volume, has announced robust financial results for the second quarter of fiscal year 2026, marking its fifth consecutive quarter of strong performance post-listing.

Key Financial Highlights

• Income from Operations reached ₹995.00 crore, up 14.4% year-on-year
• EBITDA grew to ₹130.00 crore, a 23.6% increase year-on-year
• EBITDA margin expanded to 13.1%, up 98 basis points year-on-year
• Profit After Tax (PAT) rose to ₹63.00 crore, a 32.3% jump year-on-year

Accelerated Premiumization

ABD's Prestige & Above (P&A) segment continued to strengthen, with volume salience rising to 47.1% in Q2FY26, up from 39.7% in Q2FY25. The value salience of this segment improved to 56.9%, compared to 49.0% in the same quarter last year.

Operational Highlights

PET Bottle Manufacturing Unit

ABD commissioned a ₹115.00 crore PET bottle manufacturing unit in Rangapur, Telangana, with an annual capacity of over 600 million bottles. This initiative is part of ABD's ₹525.00 crore backward integration program aimed at enhancing operational efficiency and improving gross margins.

Sterling Reserve B7 Campaign

The company launched a refreshed SRB7 blend with enhanced smoothness, supported by the nationwide "So Smooth, Must Be Magic" 360° campaign. This initiative drove strong consumer engagement with over 100 million digital impressions.

International Expansion

ABD expanded its international presence to 30 countries by September 2025, up from 23 countries in FY25. The company's latest millionaire brand, ICONiQ White, has been launched in 8 countries.

ABD Maestro

The company's super-premium and luxury spirits subsidiary expanded its retail footprint to Bengaluru and Delhi International Airports, enhancing its visibility in the travel retail segment.

Management Commentary

Alok Gupta, Managing Director of ABD, stated, "This quarter marks our 5th consecutive quarter of strong performance post listing with consistent improvement in premiumization of portfolio and margin enhancement. The commissioning of PET bottle manufacturing unit within stated timelines in Q2FY26 validates our project execution capabilities and is now EBITDA accretive."

Future Outlook

With a strong H1FY26 performance and an upcoming festive season in Q3FY26, ABD expects the profitable growth momentum to continue in H2FY26. The company remains committed to enhancing offerings with a comprehensive luxury portfolio to meet evolving consumer needs and deliver long-term value to all stakeholders.

ABD's focus on portfolio premiumization, margin expansion, and operational excellence positions it well for continued growth in the Indian spirits market.