Associated Alcohols & Breweries has set ambitious volume growth targets while positioning for strong quarterly performance through strategic product launches. The company expects 30-35% annual volume growth fueled by better brand variety and premium products, alongside significant revenue acceleration in Q4 FY26.

Revenue Outlook and Quarterly Performance

The company anticipates over 25% revenue growth in Q4 FY26, which is traditionally their strongest quarter. This robust quarterly performance is expected to be driven by the launch of Ready-to-Drink (RTD) products and exclusive Indian Made Foreign Liquor (IMFL) items, marking a significant expansion in the company's product portfolio.

Strategic Product Portfolio Expansion

The company's growth strategy centers on diversifying its product offerings through innovative launches and premium positioning. The introduction of RTD products represents a strategic move to capture the growing convenience segment, while exclusive IMFL items target the premium alcoholic beverages market.

Volume Growth Strategy

Associated Alcohols & Breweries has outlined an ambitious volume growth target of 30-35% year-over-year, supported by two key strategic pillars:

• Enhanced Brand Mix: Optimizing the product portfolio to capture higher-value market segments
• Premiumization Trends: Leveraging ongoing market trends toward premium alcoholic beverages

The company's confidence in achieving substantial volume growth reflects its strong operational capabilities and strategic market positioning, particularly with Q4 FY26 expected to demonstrate the impact of new product launches.

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Associated Alcohols & Breweries Limited announced its Q3FY26 financial results and held an earnings conference call on February 5, 2026, outlining strong margin performance and strategic expansion plans. The company demonstrated resilient profitability despite revenue challenges, with management highlighting operational efficiency improvements and premium portfolio development.

Financial Performance Overview

The company delivered mixed financial performance during Q3FY26, with significant margin expansion offsetting revenue decline. EBITDA margins improved dramatically to 16% compared to 12% in the corresponding period last year, driven by softening raw material prices and operational efficiency gains.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, the company showed stronger profitability growth with net revenue of ₹781 crores, EBITDA of ₹103 crores, and PAT of ₹65 crores, supported by proprietary volume expansion.

Proprietary Brand Growth Strategy

Management emphasized strong momentum in proprietary brands, with IMFL proprietary volumes reaching 1.7 million cases for nine months FY26, representing 32% year-on-year growth. The company targets building Central Province into a 1 million case brand through geographic expansion and consistent quality positioning.

Premium Portfolio Expansion

The company outlined ambitious premium product launches, with RTD product Kultur scheduled for H2 FY26 launch and premium tequila and brandy planned for Q1 FY27. Management highlighted receiving requisite licenses from Mexican authorities, positioning the company among the first Indian companies to bottle authentic tequila.

Geographic Expansion and Market Penetration

During Q3FY26, the company entered Jharkhand market with its premium portfolio, including Nicobar Gin, Titanium Triple Distilled Vodka, Hillfort and Central Province Whiskey. In Maharashtra, the company achieved higher realizations of around ₹1,500 per case compared to overall portfolio realization of ₹700-800 per case.

Malt Plant Development

The company's malt maturation facility is progressing as planned, with ₹6 crores invested in cask procurement during Q3FY26. Total capex commitment stands at ₹100 crores, with ₹60-65 crores already invested. The facility will primarily serve internal requirements for premium and mid-premium whiskey brands.

Raw Material and Operational Efficiency

Management reported significant improvement in raw material costs, with grain prices declining from ₹23,000 per quintal last quarter to ₹20,000 plus currently. The company expects grain prices to remain stable, supporting margin sustainability. Gross margins improved to 46% versus 36% in the previous quarter.

Future Outlook

Despite Q3FY26 revenue challenges, management expressed confidence in maintaining FY26 reported revenues broadly in line with FY25, expecting strong Q4 performance. The company continues targeting 30-35% year-on-year volume growth in proprietary brands, supported by improving brand mix and premiumization trends.