Som Distilleries & Breweries Limited has released its detailed Q3 FY26 earnings conference call transcript, revealing challenging financial performance during the quarter ended December 2025. The company reported total income of ₹254.20 crores with significant pressure on volumes and margins due to adverse weather conditions.

Financial Performance Overview

The company's Q3 FY26 results reflected the impact of extended cold weather conditions in key markets. EBITDA for the quarter stood at ₹23.10 crores with a margin of 9.10%, while net profit was ₹5.50 crores, representing a margin of 2.20%.

Volume and Realization Analysis

Beer segment faced significant challenges with volumes declining 24% year-on-year to 35.30 lakh cases, primarily due to unusually cold weather in key markets like Madhya Pradesh and Delhi. However, the IMFL segment showed strong momentum with 46% growth, contributing 5.00 lakh cases.

Beer realization improved to ₹543 per case compared to ₹516 in Q3 FY25, driven by product mix changes. IMFL realization stood at ₹988 per case, down from ₹1,068 in the previous year, reflecting category-wide pricing pressures.

Nine-Month Performance

For the nine months of FY26, the company achieved total income of ₹1,054.00 crores with EBITDA of ₹135.00 crores, maintaining a margin of 12.90%. Net profit for the period was ₹67.00 crores with a 6.40% margin.

Expansion Projects and Regulatory Updates

The company's ₹570 crores greenfield project in Uttar Pradesh under subsidiary Woodpecker Greenagri Nutrients is progressing as planned. Phase 1, involving ₹370 crores investment for a one crore case brewery capacity, is expected to be completed by June 2026. The project has achieved financial closure for both phases, providing long-term funding visibility.

Regarding the Bhopal plant license suspension, the company has made submissions to the MP High Court and expects a judgment within 2-3 days. The management expressed confidence in resolving the matter soon to minimize impact on Q4 operations.

Market Outlook and Strategy

Despite Q3 challenges, management remains optimistic about Q4 performance, targeting approximately ₹450 crores in sales to achieve ₹1,500 crores for the full financial year. The company continues focusing on premiumization strategy, with IMFL brands showing positive momentum and expansion of Mahavat brand from Madhya Pradesh to Delhi and UP markets.

Plant utilization rates during Q3 were: Bhopal at 56%, Woodpecker at 42%, and Odisha at 36%, indicating scope for capacity optimization as market conditions improve.

SOM Distilleries & Breweries Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025. The alcoholic beverages manufacturer reported mixed performance with quarterly results showing a decline while nine-month figures demonstrated growth in key metrics.

Standalone Financial Performance

The company's standalone operations reflected challenging quarterly performance alongside stronger nine-month results. Revenue from operations for Q3 FY26 declined year-over-year, while the nine-month period showed modest growth.

Consolidated Financial Results

The consolidated financial performance, which includes subsidiaries Woodpecker Distilleries & Breweries Private Limited, SOM Distilleries and Breweries Odisha Private Limited, and Woodpecker Greenagri Nutrients Private Limited, also showed quarterly decline but nine-month improvement.

Operational Highlights

The company's cost structure showed significant variations during the quarter. Cost of materials consumed increased to ₹11,028.97 lakh in Q3 FY26 from ₹10,422.84 lakh in Q3 FY25. However, the company benefited from favorable inventory changes, with finished goods inventory decreasing by ₹2,795.36 lakh compared to a decrease of ₹1,041.57 lakh in the previous year quarter.

State excise duties for the standalone business increased marginally to ₹2,702.72 lakh from ₹2,647.64 lakh year-over-year. Employee benefit expenses remained relatively stable at ₹558.00 lakh compared to ₹527.41 lakh in Q3 FY25.

Board Decisions and Corporate Actions

The Board of Directors, in their meeting held on February 10, 2026, approved the quarterly and nine-month financial results along with the limited review report. The board also granted omnibus approval for certain related party transactions conducted in the ordinary course of business on an arm's length basis.

The financial results were reviewed by the audit committee and subsequently approved by the board. The company continues to focus on manufacturing alcoholic beverages as its primary business segment, with no other reportable segments qualifying for separate disclosure under relevant accounting standards.