Globus Spirits delivered strong operational performance in Q3 FY26, demonstrating resilience in its consumer business while maintaining robust manufacturing margins. The company held its earnings conference call on January 13, 2026, to discuss financial results for the quarter and nine months ended December 31, 2025.

Strong Performance in Prestige & Above Segment

The company's Prestige & Above (P&A) segment showed impressive growth momentum during the quarter. Excluding Delhi operations, the segment achieved significant year-on-year expansion across key metrics:

The company faced temporary challenges in Delhi due to policy-related issues during Q2, but these have been resolved in Q3. Management expects Delhi operations to normalize completely by the end of Q4 FY26. The company expanded its presence in Assam with the launch of Mountain Oak and Brothers brands, while planning entry into Jharkhand by Q4 end.

Manufacturing Business Delivers Strong Margins

The manufacturing division demonstrated excellent performance with improved capacity utilization and margin expansion. The business consumed approximately 15 million liters of ENA internally while selling 52.25 million liters of ENA and ethanol during the quarter.

The significant margin improvement was driven by lower raw material costs, with prices declining 15% year-on-year and 4% quarter-on-quarter. This reduction aligns with seasonal trends typically observed from mid-November through early Q4.

Upcoming UP Distillery Commissioning

The company is preparing to commission its Uttar Pradesh distillery facility, representing a major capacity expansion initiative. The facility received licensing approval in early January 2026 and commissioning is underway.

This new capacity will enhance the company's manufacturing footprint and improve margins for both Regular & Others (R&O) and P&A portfolios in Uttar Pradesh. The facility adds approximately 30 million liters to the company's total annual capacity.

Regional Performance and Market Expansion

The R&O segment showed mixed performance across different states during the quarter. Rajasthan, the company's key market, maintained steady growth in line with industry trends.

Uttar Pradesh operations showed encouraging progress, with December sales reaching the 1 lakh case milestone. This performance aligns with management's expectations for the large UP market, which represents approximately 1 crore cases per month in total industry volume.

Financial Guidance and Strategic Outlook

Management maintained its guidance for key business metrics while highlighting strategic initiatives for growth acceleration. The company received board approval for an enabling resolution to raise up to ₹500 crores, providing flexibility for future growth investments.

The potential fundraising would support consumer business expansion, working capital requirements, and increased malt whiskey inventory for the company's premium DOAAB single malt brand. Management emphasized that the fundraising is enabling in nature, with actual requirements expected to be lower than the approved limit.

The company continues to focus on building its brand-led consumer business while leveraging its integrated manufacturing platform for cost advantages and supply security. With Delhi operations normalizing and new state entries planned, Globus Spirits is positioned for sustained growth in the Indian alcoholic beverages market.

Globus Spirits has announced a major capacity expansion initiative with a ₹200 crore investment in a new grain ENA (Extra Neutral Alcohol) production facility. This strategic investment is positioned to significantly enhance the company's production capabilities and market position in the alcoholic beverages sector.

New Production Facility Details

The new asset represents a substantial commitment to expanding manufacturing capacity in Uttar Pradesh. Key specifications of the investment include:

Operational Impact and Margin Enhancement

The new facility is designed to deliver multiple operational benefits beyond increased production volume. The grain ENA production capacity addition will enhance margins across two key business segments:

• R&O (Rectified & Ordinary) segment margins
• P&A (Potable Alcohol) segment margins

This margin improvement strategy reflects the company's focus on optimizing profitability while scaling operations in the competitive alcoholic beverages market.

Growth Projections and Market Share Targets

Globus Spirits has outlined ambitious growth targets as part of its expansion strategy. The company's forward-looking projections demonstrate confidence in its market positioning:

The company's forecast of achieving 5% market share by FY29 is particularly notable, as this target is based on the conservative assumption that overall market volume will remain flat. This suggests the company expects to gain market share through competitive positioning rather than relying on overall market growth.

Strategic Positioning

This capacity expansion initiative positions Globus Spirits for enhanced competitiveness in the Indian alcoholic beverages market. The focus on grain ENA production, combined with the strategic location in Uttar Pradesh, aligns with the company's operational efficiency objectives. The investment timeline, with production enhancement expected in Q4, indicates a near-term impact on the company's manufacturing capabilities and market presence.