Associated Alcohols & Breweries Limited announced its Q3FY26 financial results and held an earnings conference call on February 5, 2026, outlining strong margin performance and strategic expansion plans. The company demonstrated resilient profitability despite revenue challenges, with management highlighting operational efficiency improvements and premium portfolio development.

Financial Performance Overview

The company delivered mixed financial performance during Q3FY26, with significant margin expansion offsetting revenue decline. EBITDA margins improved dramatically to 16% compared to 12% in the corresponding period last year, driven by softening raw material prices and operational efficiency gains.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, the company showed stronger profitability growth with net revenue of ₹781 crores, EBITDA of ₹103 crores, and PAT of ₹65 crores, supported by proprietary volume expansion.

Proprietary Brand Growth Strategy

Management emphasized strong momentum in proprietary brands, with IMFL proprietary volumes reaching 1.7 million cases for nine months FY26, representing 32% year-on-year growth. The company targets building Central Province into a 1 million case brand through geographic expansion and consistent quality positioning.

Premium Portfolio Expansion

The company outlined ambitious premium product launches, with RTD product Kultur scheduled for H2 FY26 launch and premium tequila and brandy planned for Q1 FY27. Management highlighted receiving requisite licenses from Mexican authorities, positioning the company among the first Indian companies to bottle authentic tequila.

Geographic Expansion and Market Penetration

During Q3FY26, the company entered Jharkhand market with its premium portfolio, including Nicobar Gin, Titanium Triple Distilled Vodka, Hillfort and Central Province Whiskey. In Maharashtra, the company achieved higher realizations of around ₹1,500 per case compared to overall portfolio realization of ₹700-800 per case.

Malt Plant Development

The company's malt maturation facility is progressing as planned, with ₹6 crores invested in cask procurement during Q3FY26. Total capex commitment stands at ₹100 crores, with ₹60-65 crores already invested. The facility will primarily serve internal requirements for premium and mid-premium whiskey brands.

Raw Material and Operational Efficiency

Management reported significant improvement in raw material costs, with grain prices declining from ₹23,000 per quintal last quarter to ₹20,000 plus currently. The company expects grain prices to remain stable, supporting margin sustainability. Gross margins improved to 46% versus 36% in the previous quarter.

Future Outlook

Despite Q3FY26 revenue challenges, management expressed confidence in maintaining FY26 reported revenues broadly in line with FY25, expecting strong Q4 performance. The company continues targeting 30-35% year-on-year volume growth in proprietary brands, supported by improving brand mix and premiumization trends.

Associated Alcohols & Breweries Limited has reported mixed financial results for the third quarter, with revenue declining significantly while demonstrating strong profitability and operational efficiency improvements. The company's quarterly revenue dropped to ₹2.64 billion compared to ₹3.34 billion in the corresponding quarter of the previous year, marking a substantial year-on-year decline of 21%.

Strong EBITDA Performance Amid Revenue Challenges

Despite revenue headwinds, the company delivered impressive operational metrics with EBITDA reaching ₹415 million compared to ₹395 million in the previous year, representing a year-on-year growth. More significantly, EBITDA margin expanded substantially to 15.69% from 11.83% in the corresponding quarter of the previous year, indicating enhanced operational efficiency and cost management.

Q3 Financial Performance Overview

The company maintained profitability growth alongside improved margins. Standalone net profit reached ₹273 million compared to ₹261 million in the previous year's corresponding quarter, representing a growth of 4.60%. This performance demonstrates the company's ability to enhance profitability despite challenging top-line conditions.

Board Meeting and Results Approval

The financial results were formally approved during the board meeting held on February 04, 2026, at the company's registered office. The board considered and approved both standalone and consolidated unaudited financial results for the quarter ended December 31, 2025.

Management Communication

Following the results announcement, the company hosted an earnings conference call on February 5, 2026, at 04:00 PM IST. The call was conducted by Go India Advisors and featured key management members including Mr. Anshuman Kedia (Whole Time Director & CEO), Mr. Tushar Bhandari (Whole Time Director), and Mr. Dilip Kumar Inani (Chief Financial Officer).

Company Operations

Associated Alcohols & Breweries Limited operates from its registered office in Indore and maintains its manufacturing plant at Khodigram, Tehsil Barwaha, District Khargone in Madhya Pradesh. The company markets various alcoholic beverage brands including Nicobar, Hillfort, Titanium, CP, Jamaican Magic, and James Mc Gill.