1. Opening Hook
While liquor stocks are supposed to make investors feel tipsy with joy, AABL’s Q2 concall delivered a mixed cocktail. Volumes were strong, brands were flexing, but margins decided to sulk in the corner.
Management proudly spoke about premiumisation, tequila approvals from Mexico, single malt dreams, and being a “one-stop alcobev shop.” Investors, meanwhile, were busy counting basis points that quietly vanished thanks to byproducts, maize, and aggressive market entry costs.
The company is clearly in expansion mode—new states, new brands, new categories, and new excuses for why margins will improve later.
Is this the classic growth-before-profit phase, or just growth with a side of hope?
Read on—because once you strip out the bravado, the real story of AABL’s balancing act gets far more interesting.
2. At a Glance
- IMFL Proprietary volumes up 37%: Brands are selling fast, accountants slightly slower.
- Net revenue flat YoY at ₹253 Cr: Growth happened, but accounting optics didn’t cooperate.
- EBITDA margin ~9%: Expansion costs drank the margin before investors could.
- PAT ₹14 Cr: Profitable, but not party-worthy.
- Licensed IMFL revenue down: Inbrew switched models, top-line vanished politely.
- Ethanol utilization ~85%: Plants busy, byproducts sadly cheap.
3. Management’s Key Commentary
“We are one of the fastest emerging integrated alcobev players.”
(Translation: Trust us, the future slide deck looks fantastic 😏)
“IMFL proprietary is our core growth driver.”
(Translation: Everything else is support cast now.)
“We will grow proprietary IMFL at 30–35%.”
(Translation: If states cooperate and distributors pay.)
“Margins are down due to byproduct prices.”
(Translation: Cattle feed ruined your EBITDA 🐄)
“Marketing costs rise when entering new states.”
(Translation: Shelf space in Maharashtra isn’t free.)
“Single malt plant is commissioned.”
(Translation: Profits will age… like whisky.)
“We got Mexico approval for tequila.”
(Translation: Finally, real
