Globus Spirits Q1 FY26: ₹699 Cr Sales, Profit Still Tipsy – The Distiller That Needs a Stronger Shot

1. At a Glance

Globus Spirits (GSL), the grain-to-glass liquor maker, posted Q1 FY26 revenue of ₹699 cr (+8.9% YoY) with PAT ₹19 cr. While sales are holding up, margins remain sobering at OPM 8% and ROE just 2.5%. The stock trades at a jaw-dropping P/E of 132x, making investors wonder if they’re buying whiskey or whisky dreams.

2. Introduction

Globus Spirits is known for its 360° alcohol value chain—from bulk alcohol to branded IMIL/IMFL. But lately, its profitability curve looks more like a hangover graph. While revenue continues to rise, net profits have been in rehab. Q1 FY26 saw a small PAT recovery, but the stock’s valuation remains sky-high. Will GSL sober up with better margins, or will investors need a stiff drink?

3. Business Model (WTF Do They Even Do?)

Segments: IMIL (Indian Made Indian Liquor), IMFL (Foreign Liquor), Bulk Alcohol, Franchise Bottling.
USP: First in India with branded DDGS (animal feed by-product).
Edge: Fully integrated operations from grain sourcing to bottling.
Roast: They make alcohol but can’t seem to intoxicate their balance sheet.

4. Financials Overview

Q1 FY26 Revenue: ₹699 cr (+8.9% YoY)
EBITDA: ₹58 cr (OPM 8%)
PAT: ₹19 cr (+13% YoY)
EPS (Q1): ₹6.4
FY25 PAT: ₹27 cr, EPS ₹9.36
ROE: 2.54%, ROCE: 5.8%

Commentary: Sales growth is fine, but profitability is weak. For a liquor company, margins this low are a buzzkill.

5. Valuation

a) P/E Method

EPS TTM ₹9.4, CMP ₹1,232 → P/E 131.7x.
Peers: Tilaknagar 43x, United Spirits 60x.
Fair Value (P/E 30–40x) → ₹280–₹380.

b) EV/EBITDA

FY25 EBITDA ₹162 cr; apply 8–10× multiple.
Fair Value → ₹650–₹800.

c) DCF (Simplified)

Growth 10%, discount 10%, terminal 3%.
Fair Value → ₹600–₹750.

🎯 Fair Value Range: ₹600–₹800

6. What’s Cooking – News, Triggers, Drama

Ethanol Blending Policy: Could benefit bulk alcohol segment.
New Plants/Expansions: Capacity expansion in select states.
Weak ROE: Needs operational turnaround to justify lofty valuations.
High P/E: The stock is priced for perfection but delivering mediocrity.

7. Balance Sheet

Metrics (₹ cr)	FY25
Total Assets	2,096
Reserves	966
Borrowings	527
Liabilities	2,096

Auditor Roast: Debt is manageable, but returns are so low that even a savings account looks attractive.

8. Cash Flow – Sab Number Game Hai

Year	Ops	Investing	Financing
FY23	102	−211	85
FY24	172	−167	−6
FY25	70	−210	142

Roast: Operational cash shrank dramatically in FY25 – they’re spending more than they’re earning.

9. Ratios – Sexy or Stressy?

Ratio	FY25
ROE	2.54%
ROCE	5.8%
P/E	132
PAT Margin	6%
D/E	0.25

Verdict: Stressy. For a liquor company, those returns are almost teetotaler levels.

10. P&L Breakdown – Show

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