Globus spirits Limited is positioned to benefit from the new Rajasthan excise policy that will take effect from April 1, 2026. The policy framework introduces several positive changes that are expected to enhance the company's operational performance and financial metrics in the state.

Key Policy Benefits

The new excise policy brings multiple advantages for the spirits manufacturer:

Enhanced Operational Framework

The policy provides greater flexibility in stock procurement, which could streamline the company's supply chain operations and inventory management. This operational improvement may contribute to better working capital management and reduced procurement costs.

Volume Growth Prospects

Under the new policy structure, Globus Spirits anticipates approximately 8% increase in volume. This growth projection reflects the more favorable operating environment created by the revised excise framework.

Cost Structure Improvements

A significant development under the new policy is the 50% reduction in bottling fees specifically for Indian Made Foreign Liquor (IMFL) products sold outside Rajasthan. This cost reduction could improve margins for interstate sales and enhance the company's competitiveness in external markets.

The implementation of these policy changes from April 1, 2026, provides Globus Spirits with a clear timeline to prepare for the enhanced operational environment in Rajasthan.

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.