Som Distilleries & Breweries Limited (SDBL) has confirmed that the Customs Department recently conducted a visit to inquire about the company's import-export activities. The beverage manufacturer reported that no violations were found during the inquiry and stated there would be no financial impact from this visit.

Details of the Customs Department Visit

According to a disclosure made by Som Distilleries under Regulation 30 of SEBI (LODR) Regulations 2015, the Department of Customs visited the company's Corporate Office in Bhopal and its factory. The purpose of the visit was to conduct an inquiry and reconciliation of import and export transactions.

Key Points from the Disclosure

Company's Response

Som Distilleries emphasized in its disclosure that no violations or contraventions were committed or alleged during the Customs Department's visit. The company also confirmed that it did not receive any direction, order, or communication from the authority following the inquiry.

Transparency in Reporting

The prompt disclosure by Som Distilleries aligns with the regulatory requirements set by the Securities and Exchange Board of India (SEBI). This transparency helps maintain investor confidence and ensures compliance with listing obligations.

About Som Distilleries and Breweries Limited

Som Distilleries and Breweries Limited is a beverage company with its registered office in New Delhi and corporate office in Bhopal, Madhya Pradesh.

Som Distilleries & Breweries Limited , a prominent player in the Indian alcoholic beverage market, reported mixed results for the first quarter of fiscal year 2026, navigating through market challenges and policy changes.

Financial Performance

The company reported a total income of Rs. 5,301.00 million for Q1 FY26, marking a 3.20% year-over-year growth. Despite the modest top-line growth, Som Distilleries managed to maintain profitability with an EBITDA of Rs. 721.00 million and a net profit of Rs. 421.00 million.

Volume Analysis

Total volume reached 8.90 million cases during the quarter. While beer volumes declined by 2.50% to 8.50 million cases, the Indian Made Foreign Liquor (IMFL) segment showed strong growth, surging 58.00% to 0.40 million cases.

Market Challenges

Som Distilleries faced significant headwinds in Karnataka, a key market for the company. Unseasonal rains and excise duty hikes led to a volume decline of over 20.00% in the state. This resulted in a reduction of the company's market share in Karnataka from 17.50-18.00% to 12.50-13.00%.

Product Performance

Despite the challenges, the company's mainline brands Hunter and Power Cool showed growth. The beer realization improved to Rs. 566.00 per case from Rs. 550.00 in the previous year.

New Product Launch

Som Distilleries launched Mahavat Whisky, a mid-premium whisky, in Madhya Pradesh. The initial response has been positive, indicating potential for growth in the IMFL segment.

Expansion Plans

The company is constructing a new brewery in Uttar Pradesh with a planned capital expenditure of Rs. 370.00 crores. The facility is expected to be commissioned in the first half of FY27 with a capacity of 10.00 million cases.

Outlook

While Som Distilleries has revised its full-year revenue growth guidance to 15.00-17.00% from the earlier 20.00-22.00%, management expects recovery in the coming quarters. This optimism is partly due to the partial rollback of excise duties in Karnataka and anticipated growth in other markets.

Management Commentary

Diwakaran Suryanarayana, Chief Operating Officer, stated, "We expect reasonable recovery in industry and our own volumes in the coming quarters. We will continue to focus on growth drivers and innovation in both IMFL and beer segments."

Nakul Sethi, Director of Finance and Strategy, added, "We remain confident in our strategy and execution capabilities as we continue to build, scale, expand reach, and drive growth across our key markets."

Som Distilleries & Breweries Limited continues to navigate through market challenges while focusing on expansion and product innovation to drive future growth.