1. At a Glance – Desi Liquor, Global Hangover (and Some Classy Glassware)
Allied Blenders & Distillers Ltd (ABDL) walks into the room with brute force volume, a confident swagger, and a balance sheet that’s clearly been to the gym. India’s largest spirits company by volume, ABDL shipped 33.1 million cases in FY25, owns four millionaire brands, and commands ~8% share of India’s ~400 million case IMFL market. That’s not a typo—that’s scale.
As of 29 Jan 2026, the stock trades around ₹456, with a market cap of ₹12,759 Cr, P/E ~47.6, EV/EBITDA ~25.5, ROCE ~21%, and ROE ~20%. The last quarter (Q3 FY26) printed ₹1,003 Cr revenue, ₹136 Cr EBITDA, and ₹64 Cr PAT, while margins quietly climbed into the teens (OPM ~14%).
But here’s the plot twist: despite solid numbers, the stock is down ~31% over 3 months. Why? Because markets don’t just drink volume anymore—they want premium cocktails, cleaner working capital, and fewer litigation hangovers. ABDL is trying to deliver all three—premiumisation, backward integration, and capex-led margin expansion—while dragging high debtor days and contingent liabilities along for the ride. Curious yet?
2. Introduction – From Officer’s Choice to Zoya Gin: Glow-Up in Progress
ABDL isn’t new money. Founded in 1988 (listed later), it built an empire on Officer’s Choice, a brand so ubiquitous it could probably vote in Indian elections. For years, the playbook was simple: sell a lot, everywhere, at prices the masses love. It worked—brilliantly.
But the industry changed. United Spirits went premium. Radico sharpened margins. Craft gin started appearing at weddings where whisky once ruled. ABDL responded with a portfolio reset—pushing Prestige & Above to 47% of revenue, launching ICONiQ White Whisky
(one of the fastest-growing whisky brands globally), and flirting with luxury via Zoya Gin and Arthaus Blended Malt.
Meanwhile, management decided margins shouldn’t be left to fate. Hence the ₹525 Cr integration capex—distilleries, malt, PET bottles—aimed at 100% ENA self-sufficiency and 70–75% captive packaging. Translation: fewer vendors, tighter control, better margins.
Sounds great. But does the math cooperate every quarter? Let’s open the books.
3. Business Model – WTF Do They Even Do? (Besides Supplying India’s Parties)
Think of ABDL as a national liquor highway. They produce, bottle, distribute, export—and increasingly, own the plumbing.
Core activities:
- Manufacturing & bottling across 9 owned distilleries plus third-party units (total 34 bottling units).
- Brand ownership across mass premium to luxury.
- Pan-India distribution to 79,000+ outlets, covering 90%+ of India’s retail network.
- Exports to 23 countries (6.5% of FY25 revenue), with approvals in USA & Canada now unlocked.
Portfolio ladder (where the money moves):
- Mass Premium (47%) – Officer’s Choice (cash cow, export beast).
- Prestige (part of 47%) – Officer’s Choice Blue, Sterling Reserve B7.
- Premium – Sterling Reserve B10, Kyron Brandy.
- Super-Premium/Luxury – Zoya Gin, Arthaus, Woodburns, Russian Standard Vodka.
- Fast growers – ICONiQ White Whisky, Golden Mist Brandy, Srishti Whisky.
