Associated Alcohols & Breweries Limited (AABL) has reported a robust performance in its proprietary Indian Made Foreign Liquor (IMFL) segment for the second quarter of fiscal year 2026, despite flat overall revenue. The company's strategic focus on expanding its own brand portfolio and entering new markets is showing promising results.

Financial Highlights

All financial figures in INR crores, except for percentages

Segment Performance

All revenue figures in INR crores

Key Highlights

1. Strong Growth in Proprietary IMFL: AABL reported a 37% year-on-year growth in proprietary IMFL volumes, reaching 5.66 lakh cases. This segment also saw a 35% increase in revenue.

2. Geographical Expansion: The company has successfully entered Maharashtra and Uttar Pradesh markets, with plans to launch in Pondicherry, Goa, Odisha, and Jharkhand in the near future.

3. Product Portfolio Expansion: AABL has commissioned its malt plant in Barwaha with a capex of INR 55 crores, supporting its premium whisky portfolio. The company is set to enter the ready-to-drink segment with the launch of 'Kultur' in H2 FY26.

4. Tequila Approval: AABL has received approval from Mexico to produce and sell tequila, making it the only Indian company with this distinction. The launch is expected in January 2026.

5. Margin Pressure: The company faced some margin pressure due to increased marketing expenses for new market entries and lower byproduct realization. EBITDA margin stood at 9%, down from 10% in the corresponding period last year.

Management Commentary

Tushar Bhandari, Whole-Time Director, stated, "Our focus remains on strengthening our proprietary IMFL portfolio and expanding our presence in the premium and above segment. With new products to be launched in subsequent quarters and entry into additional geographies, we are confident of achieving around 30% to 35% revenue growth in our proprietary IMFL brands."

Anshuman Kedia, Whole-Time Director & CEO, added, "The broader sector continues to witness strong momentum with premium spirits leading category growth, supported by evolving consumer preferences, rising disposable incomes, and increasing brand consciousness."

Outlook

AABL expects to maintain a 30-35% growth rate in its proprietary IMFL brands. The company is targeting an overall revenue growth of around 10% and expects EBITDA margins to stabilize between 9-11% in the coming quarters. With its strategic focus on premium offerings and geographical expansion, AABL is positioning itself for sustained growth in the Indian alcobev market.

Investors should note that while the company is investing heavily in marketing and expansion, which may pressure margins in the short term, these initiatives are expected to drive long-term growth and market share gains in the competitive Indian liquor industry.

Associated Alcohols & Breweries Limited (AABL) has recently made several significant announcements, including the confirmation of proper fund utilization from convertible warrants, key changes in its leadership team, and amendments to its corporate documents.

Fund Utilization from Convertible Warrants

AABL has filed its quarterly statement confirming no deviation or variation in the use of funds raised through convertible warrants. The company had two warrant issues:

The first warrant issue was fully converted to equity shares on September 4, 2025. The company confirmed that the funds are being used according to the original objectives stated in the offer document. Funds from the first issue remain unutilized and are currently kept in treasury.

Leadership Changes

In a significant move, AABL has announced changes in its financial leadership:

1. Resignation of CFO: Mr. Tushar Bhandari has resigned from his position as Chief Financial Officer (CFO) of the company, effective November 8, 2025. Mr. Bhandari cited preoccupation as the reason for his resignation. He will continue to serve as the Whole Time Director of the company.

2. Appointment of New CFO: The Board of Directors has approved the appointment of Mr. Dilip Kumar Inani as the new Chief Financial Officer and Key Managerial Personnel of the company, effective November 8, 2025.

Profile of New CFO

Mr. Dilip Kumar Inani brings over 30 years of experience in financial leadership roles across various sectors including Textile, FMCG, Glass, and Paper. As a Chartered Accountant, he has held senior finance positions in reputed organizations. His expertise includes:

• Financial planning & analysis
• Controllership
• Taxation
• Treasury management
• Audit & compliance
• ERP implementation

Throughout his career, Mr. Inani has led the implementation of SAP/HANA/Oracle ERP systems, streamlined working capital and treasury operations, and played key roles in M&A and restructuring initiatives.

Other Corporate Actions

The company has also announced several other corporate actions:

1. Amendments to the Memorandum of Association (MOA) and Articles of Association (AOA): The Board of Directors approved amendments on November 8, 2025, to include the power to "captively generate and captively consume electrical power." Specifically:

   • Added power to captively generate and consume electrical power in Clause III(A)(2) of the MOA
   • Inserted a new Clause 156(A) in the AOA to empower the company to carry on electricity generation business
   • These amendments are subject to approval from the company's members

2. Approval of a draft notice for a Postal ballot by e-voting regarding the amendments to the MOA and AOA.

3. Authorization to submit a Resolution Plan for SDF Industries Limited.

These developments indicate that Associated Alcohols & Breweries Limited is actively managing its financial resources, strengthening its leadership team, and pursuing strategic initiatives for future growth, including potential expansion into electricity generation capabilities.