1. At a Glance
Associated Alcohols & Breweries Ltd (AABL) is having one of those “I look boring on the outside but quietly lifting heavy weights inside” phases. Market cap sitting at ₹1,616 Cr, stock price bruised at ₹852 (down ~24% in 3 months, because markets love drama), yet operationally the company is doing a tightrope walk between liquor dominance, ethanol ambitions, and balance sheet discipline.
Q3 FY26 headline numbers?
Quarterly sales ₹260 Cr, PAT ₹27.3 Cr, with profits still growing ~4.6% YoY even as topline slipped ~20% YoY. ROCE at a respectable 20%, debt-to-equity a gym-bro 0.13, and interest coverage so high (24x) that lenders probably send thank-you cards.
This is a company that sells country liquor, premium whisky, ethanol, ENA, and now wants to flirt with tequila. Yes, tequila. From Madhya Pradesh. Welcome to Indian capital markets.
But is this a cyclical hangover or a structural party? Let’s pour a large peg and find out.
2. Introduction – From Desi Tharra to Ethanol Fuel
Associated Alcohols & Breweries is not your shiny United Spirits poster boy. This is a hardcore central India operator, built brick by brick in regulated markets, state tenders, excise drama, and volume games.
Historically, AABL’s bread and butter was IMIL + IMFL—basically the stuff that sells even when GDP growth is missing and elections are coming. Over time, management realised one thing:
👉 Liquor margins fluctuate, but ethanol cheques come on time.
So they did what any sensible distiller with land, grain access, and ENA experience would do—they built a 40 MLPA ethanol plant and entered the government-backed Ethanol Blended Petrol (EBP) program.
Result?
Ethanol went from zero in FY22 to 24% of revenue in 9M FY25. That’s not diversification—that’s reincarnation.
Meanwhile, the company is also premiumising its liquor portfolio: gin, blended malt whisky, upcoming RTDs, premium brandy, and tequila. Basically, AABL woke up one day and said, “Why should Radico and Piccadilly have all the fun?”
But behind the glamour is a very old-school operator mindset: control debt, sweat
assets, don’t overpromise.
So… is this still a boring MP liquor company? Or a stealth FMCG + ethanol hybrid?
3. Business Model – WTF Do They Even Do?
Let’s break this down like a bar menu.
A. IMFL & IMIL – The OG Cash Machine (54% of 9M FY25 revenue)
This is where AABL learned its survival skills.
- 20–25% market share in Madhya Pradesh IMIL & IMFL
- Top 5 IMFL player in Kerala (not easy, Kerala drinks like there’s no tomorrow)
- Portfolio of 9 proprietary brands plus licensed manufacturing for big boys like Bagpiper, McDowell’s No.1, White Mischief, etc.
Volumes are down in 9M FY25 compared to FY24, but realisations are up:
- Proprietary IMFL: ₹750/case vs ₹702
- Licensed IMFL: ₹1,250/case vs ₹1,200
- IMIL: ₹567/case vs ₹499
Classic strategy: sell slightly less, charge slightly more, pray excise doesn’t change rules overnight.
B. Ethanol – The New Golden Goose (24% of revenue)
This is the real plot twist.
- 40 MLPA grain-based ethanol plant
- Operational since Jan 2024
- 28 Mn litres sold in 9M FY25
- Realisation: ₹72/litre
- Primary customer: Oil Marketing Companies (OMCs)
No marketing spends. No brand ambassadors. No distributors crying for discounts. Just tankers, invoices, and government-backed demand.
If liquor is Bollywood, ethanol is a PSU job.
C. Merchant ENA – Boring but Necessary (12%)
ENA produced both for internal use and third-party supply.
- Volumes: 15 Mn litres (down from 24 Mn FY24)
- Realisation: ₹66/litre
