Associated Alcohols & Breweries Limited has announced the strategic launch of its premium product portfolio in the state of Jharkhand on December 11, 2025. This expansion marks another significant milestone in the company's strategy to strengthen its national footprint across high-potential markets.

Premium Product Portfolio Launch

The company has introduced a curated selection of premium spirits to the Jharkhand market, showcasing its commitment to exceptional craftsmanship and quality. The portfolio launch represents a strategic move to tap into the growing demand for premium alcoholic beverages in the region.

Strategic Market Expansion

The launch in Jharkhand underscores Associated Alcohols & Breweries' continued focus on expanding its presence through strategic product introductions in markets with strong growth potential. This move aligns with the company's broader strategy of delivering exceptional craftsmanship and curated spirits across new geographical territories.

Management Commentary

Commenting on this development, Mr. Prasann Kumar Kedia, Managing Director, expressed confidence in the market opportunity. He stated that the company is pleased to introduce its premium portfolio to the Jharkhand market, which presents strong growth potential. The launch of Nicobar Indian Dry Gin, Titanium Triple Distilled Vodka, and premium whiskey brands Hillfort and Central Province marks another significant step in the company's strategy to expand its national footprint.

Market Positioning and Consumer Focus

The Managing Director emphasized the company's commitment to offering high-quality, well-crafted spirits that cater to evolving consumer preferences. He noted that Jharkhand represents a promising opportunity and expressed confidence that the premium offerings will resonate well with discerning customers in the state.

Regulatory Compliance

The product launch intimation was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring proper disclosure to stakeholders and regulatory authorities.

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.