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 successfully obtained shareholder approval for strategic amendments to its corporate documents, enabling the company to enter the power generation business. The shareholders approved the proposed changes through e-voting that concluded on December 28, 2025.

Shareholder Approval Secured

The company announced that its members have approved the alterations to both the Memorandum of Association (MOA) and Articles of Association (AOA) with the requisite majority. The e-voting process, which was scheduled from November 29, 2025, to December 28, 2025, concluded successfully with shareholders endorsing the strategic expansion.

Power Generation Business Scope

The approved amendments enable AABL to engage in comprehensive power generation activities. The new Clause No. 5 in the MOA authorizes the company to carry on business of generating, producing, refining, and dealing in various forms of energy including:

• Conventional power sources (hydel, thermal turbine, thermo electric generator)
• Non-conventional renewable energy (solar energy, rooftop solar, ground mounted solar, wind energy, tidal energy)
• Bio-mass energy and energy from petroleum by-products
• Energy conservation and efficient utilization technologies

Infrastructure and Operations Authorization

The amendments provide AABL with extensive powers to establish the necessary infrastructure for power generation operations. The company is now authorized to:

Previous Corporate Developments

This approval follows several significant developments at AABL, including the confirmation of proper fund utilization from convertible warrants totaling ₹62.32 crores raised through two warrant issues. The company also recently appointed Mr. Dilip Kumar Inani as Chief Financial Officer, replacing Mr. Tushar Bhandari who continues as Whole Time Director.

Strategic Compliance

The MOA and AOA amendments were necessary to comply with guidelines set by the Madhya Pradesh Power Transmission Company Limited and Madhya Pradesh Electricity Regulatory Commission for captive power generation. This regulatory compliance positions AABL to pursue its power generation initiatives within the established regulatory framework.

The successful shareholder approval marks a significant milestone in Associated Alcohols & Breweries Limited's diversification strategy, enabling the company to expand beyond its traditional alcoholic beverages business into the growing renewable energy sector.