Som Distilleries & Breweries Ltd reported mixed results for the second quarter of fiscal year 2026, with strong growth in its Indian Made Foreign Liquor (IMFL) segment offsetting a decline in beer volumes.

Financial Highlights

• Total income for Q2 FY2026 stood at Rs. 2,700.00 million
• EBITDA grew by 15.1% to Rs. 405.00 million
• Net profit reached Rs. 195.00 million

Segment Performance

Beer Segment

• Beer volumes declined by 19% year-on-year to 35.70 lakh cases
• Despite the volume decline, beer accounted for 89.7% of total volumes and 80.5% of revenue in Q2 FY2026
• Price realization for beer improved to Rs. 607.00 per case, up from Rs. 531.00 in Q2 FY2025

IMFL Segment

• IMFL portfolio witnessed a robust 65% volume growth
• IMFL realization was Rs. 939.00 per case, compared to Rs. 1,038.00 in Q2 FY2025
• The strong performance was driven by the launch of the new whiskey brand, Mahavat

Operational Insights

The company attributed its resilient performance to:

1. Favorable mix of older glass bottles
2. Softening of key raw material and packaging material prices
3. Stable costs of key raw materials and packaging materials during the quarter

Management Commentary

While Som Distilleries did not provide specific management quotes, the results suggest that the company's strategy of diversifying its product portfolio is paying off. The strong growth in the IMFL segment, particularly with the new Mahavat whiskey brand, has helped offset the challenges faced in the beer segment.

Future Outlook

Som Distilleries appears to be well-positioned to capitalize on the growing demand for premium alcoholic beverages in India. The success of the Mahavat whiskey launch indicates the company's ability to innovate and expand its product offerings in the competitive IMFL market.

As Som Distilleries continues to navigate the evolving market dynamics, investors will be watching closely to see if the beer segment can recover while maintaining the momentum in the IMFL portfolio.

Note: All financial figures are in Indian Rupees (INR).

Som Distilleries & Breweries Limited, a prominent player in the Indian alcoholic beverage industry, has announced its financial results for the second quarter, along with plans for a strategic acquisition.

Q2 Financial Performance

The company reported a mixed financial performance for Q2:

Despite a 16.9% year-over-year decline in revenue to ₹476.00 crore, Som Distilleries managed to improve its profitability. The company's EBITDA increased by 18.0% to ₹40.10 crore, while net profit rose by 4.3% to ₹19.50 crore. Notably, the EBITDA margin expanded significantly from 5.92% to 8.42%, reflecting improved operational efficiency.

Strategic Acquisition Plans

In a significant move, Som Distilleries' Board of Directors has approved a proposal to acquire the entire equity holding of Woodpecker GreenAgri Nutrients Private Limited (WGNPL). This acquisition aims to make WGNPL a wholly-owned subsidiary of Som Distilleries. The Board has also approved providing loans, corporate guarantees, and making investments in WGNPL, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM).

Management Commentary

While specific management quotes were not provided, the company's press release highlighted resilient performance during Q2 and H1, maintaining profitability and strengthening operating margins despite a marginal decline in total income.

Looking Ahead

Som Distilleries has scheduled an EGM for December 12, 2025, to seek shareholder approval for the proposed acquisition and related party transactions with WGNPL. The company's focus on strategic expansion and operational efficiency improvements may position it for potential growth in the coming quarters.

Investors and market observers will likely keep a close watch on how the proposed acquisition of WGNPL impacts Som Distilleries' future performance and market position in the alcoholic beverage industry.