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.

Allied Blenders & Distillers Limited (ABDL), a prominent player in the Indian spirits industry, has reported strong quarterly results, showcasing significant growth in profitability and operational efficiency.

Financial Highlights

ABDL demonstrated robust profit growth in Q2, with profit after tax surging by 32.3% to ₹63.00 crore, up from the same period last year. The company's income from operations increased by 14.4% to ₹995.00 crore.

Operational Performance

The company's operational efficiency saw a marked improvement, as evidenced by the substantial increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA grew by 23.6% to ₹130.00 crore, with margins expanding to 13.1%.

ABDL delivered 9.0 million cases, up 8.4% year-on-year, driven by accelerated premiumization. The company's Prestige Above segment reached 47.1% volume salience, indicating a strong performance in the premium spirits category.

Strategic Investments

As part of its ₹525.00 crore backward integration program, ABDL commissioned a ₹115.00 crore PET bottle manufacturing unit in September. This new facility has an annual capacity of 600 million bottles and is expected to improve gross margins by 300 basis points by FY28.

International Expansion and Recognition

ABDL has expanded its international presence to 30 countries, signaling a growing global footprint. The company has also received multiple awards, including recognition for its WOODBURNS Contemporary Indian Malt Whisky, which won Grand Gold at the 2025 Spirits Selection by Concours Mondial de Bruxelles.

Market Outlook

The substantial improvement in profitability and operational metrics indicates that Allied Blenders and Distillers is effectively managing its costs and focusing on higher-margin products, particularly in its premium portfolio.

As Allied Blenders and Distillers continues to navigate the dynamic spirits market, its focus on premiumization, operational efficiency, and international expansion appears to be yielding positive results. The company's ability to maintain this growth trajectory while further developing its premium offerings will be crucial for its future performance and market position.