At a Glance
Allied Blenders (ABDL), the whisky kingpin behind Officer’s Choice, served a fiery Q1 FY26 cocktail – Revenue ₹930 Cr (+22.5% YoY), EBITDA ₹119 Cr (+56.4%), and PAT ₹56 Cr (+398.6%). That’s not growth; that’s an explosion. However, the hangover includes ₹33.9 Cr customer disputes, a ₹352 Cr tax demand (90% stayed), and debtors aging like cheap wine (181 days). The market sipped this rally, pushing the stock to ₹488, up 2.1% on results day.
1. Introduction
From a 1988 start to becoming India’s largest spirits maker by volume, Allied Blenders mixes brand power with bold margins. Officer’s Choice still rules rural India’s whisky shelves, while newer premium variants target millennials who prefer their Instagram stories neat. The quarter was a toast to profitability, but regulatory demands and working capital woes lurk behind the bar.
2. Business Model (WTF Do They Even Do?)
ABDL sells alcoholic beverages across whisky, rum, vodka, brandy, and gin segments.
- Whisky: The bread, butter, and hangover of ABDL.
- Brandy & Rum: Secondary, yet profitable.
- Vodka & Gin: Lifestyle segments with potential.
Roast: They make booze. We drink it. Investors get drunk on stock moves.
3. Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹930 Cr (+22.5% YoY)
- EBITDA: ₹119 Cr (+56.4%)
- PAT: ₹56 Cr (+399% YoY)
- EPS: ₹2.18
Comment: Profit quadrupled while competitors are still stirring their cocktails.
4. Valuation
- P/E: 54.8x – rich like a 21-year-old Scotch.
- P/B: 8.7x – investors paying premium for brand intoxication.
- Fair Value Range: ₹420 – ₹520.
Sarcasm: You’re not just buying whisky here; you’re buying hope bottled at 40% ABV.
5. What’s Cooking – News, Triggers, Drama
- International Expansion: Acquired UTO Asia for €1.225M.
- Tax Dispute: ₹352 Cr demand with 90% stay.
- Customer Dispute: ₹33.99 Cr contested.
- Product Pipeline: New launches in premium whisky segment.
Drama: Regulatory heat could sober up the rally.
6. Balance Sheet
(₹ Cr) | Mar 2024 | Mar 2025 |
---|---|---|
Total Assets | 2,665 | 3,551 |
Borrowings | 831 | 901 |
Net Worth | 430 | 1,574 |
Auditor Joke: Assets swell, but so do disputes.
7. Cash Flow – Sab Number Game Hai
(₹ Cr) | 2023 | 2024 | 2025 |
---|---|---|---|
Operating Cash | 230 | 186 | -676 |
Investing Cash | -27 | -59 | -185 |
Financing Cash | -195 | -128 | 922 |
Remark: Negative OCF? Guess profits are on paper while cash plays hide-and-seek.
8. Ratios – Sexy or Stressy?
Ratio | 2023 | 2024 | TTM |
---|---|---|---|
ROE | 12% | 20% | 20% |
ROCE | 16% | 21% | 21% |
OPM | 7% | 12% | 13% |
D/E | 0.3x | 0.25x | 0.25x |
Verdict: Ratios are sizzling, but working capital is a buzzkill.
9. P&L Breakdown – Show Me the Money
(₹ Cr) | 2023 | 2024 | TTM |
---|---|---|---|
Revenue | 3,147 | 3,520 | 3,681 |
EBITDA | 187 | 432 | 471 |
PAT | 5 | 200 | 249 |
Observation: From ₹5 Cr to ₹249 Cr PAT in 2 years – this is not growth; this is whisky-fueled rocket science.
10. Peer Comparison
Company | P/E | ROE | OPM |
---|---|---|---|
United Spirits | 59.0 | 21.4% | 18.5% |
Radico Khaitan | 104.5 | 13.6% | 13.9% |
Tilaknagar Inds | 43.1 | 29.9% | 17.8% |
Allied Blenders | 54.8 | 20.0% | 12.8% |
Comment: ABDL stands mid-table; brand premium saves it from being bottom-shelf.
11. Miscellaneous – Shareholding
- Promoters: 80.9% (solid control)
- FIIs: 2.8%
- DIIs: 4.7%
- Public: 11.5%
Sarcasm: Promoters own the bar; retail just buys the drinks.
12. EduInvesting Verdict™
Allied Blenders is finally serving profits neat. Strong brand equity, premiumisation, and acquisitions fuel growth. Yet, high debtor days, tax disputes, and negative cash flow make it a risky after-party.
SWOT
- Strengths: Strong brand portfolio, premiumisation strategy, global reach.
- Weaknesses: Negative cash flow, regulatory baggage, working capital drag.
- Opportunities: Rising premium liquor consumption, export push.
- Threats: Regulatory taxes, competition from United Spirits & Radico.
Final Word: A high-spirited play with underlying risks. Investors need to sip cautiously.
Written by EduInvesting Team | 29 July 2025
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