1. At a Glance – The Daru Don You Didn’t Notice 🍾
If Indian liquor companies were characters in a Bollywood movie, Associated Alcohols & Breweries Ltd (AABL) would be that silent villain who doesn’t shout, doesn’t dance… but somehow controls half the city from a single godown in Madhya Pradesh.
Here’s the twist: while everyone else is chasing flashy premium whiskey launches and Instagram reels, this company quietly built a ₹1,000+ crore revenue machine with 20%+ ROCE, 17% ROE, and almost no debt drama.
And just when you thought it’s a boring “country liquor” business, boom —
- EBITDA margin jumps to 16% in Q3
- Ethanol business suddenly becomes a ₹178 Cr segment
- Premium brands like Nicobar Gin and Hillfort Whiskey enter the chat
- And management casually says: “We want to be Top 10 in India”
Question for you:
👉 Is this a boring distillery… or a stealth FMCG + ethanol + premium liquor hybrid story hiding in plain sight?
2. Introduction – From Desi Theka to Premium Peg 🍷
Let’s be honest.
Most investors hear “country liquor company” and mentally exit faster than relatives leave after free food is over.
But AABL is not just about selling ₹100 ka pouch in rural India. It’s actually evolving into something far more interesting:
- A dominant regional liquor player (MP stronghold)
- A fast-growing ethanol supplier (thanks to government blending push)
- A premiumization story (Nicobar, Hillfort, upcoming tequila 👀)
- A contract manufacturer for giants like Diageo
And here’s where it gets spicy:
Despite revenue looking flat-ish in FY26, management openly admitted:
Revenue looks lower because of accounting changes (Inbrew shift), not business weakness
Translation:
👉 Business is running… but accounting ne thoda drama kar diya.
Now ask yourself:
👉 How many investors panic-sell when revenue drops… without reading footnotes?
3. Business Model – WTF Do They Even Do? 🍺
Let’s decode this without MBA jargon.
🍾 1. IMFL & IMIL (The Core Daru Engine)
- Own brands like Central Province, Nicobar, Hillfort
- Also manufacture for big names (Diageo brands)
Revenue contribution shrinking (54% → earlier 64%) but still core.
👉 Why shrinking?
Because ethanol entered like a new hero.
🛢️ 2. Ethanol (The Government’s Favorite Child)
- New plant started Jan 2024
- Supplies to oil companies under blending program
- 9M FY25: 28 million litres @ ₹72/litre
👉 This is not optional business. This is policy-backed growth.
🧪 3. ENA (Raw Material for Alcohol)
- Internal + external sales
- Volumes dropped because internal consumption increased
