1. At a Glance – One Peg Neat, No Water
Globus Spirits Ltd is that rare Indian liquor company which doesn’t just pour drinks but also distils the alcohol, bottles it for others, sells its own brands, feeds cattle via DDGS, and now wants to serve you beer and RTDs too. As of the latest reported quarter (Q3 FY25 – Dec 2024 results), the company is sitting at a market capitalisation of about ₹3,065 crore, with the stock hovering around ₹1,058. Over the last three months, the stock has slipped roughly 5.7%, which is ironic given that quarterly sales grew 19.1% YoY to ₹716 crore while PAT jumped to ₹31.4 crore. The P/E multiple of ~38.5x screams “priced for recovery,” while ROCE of 5.8% quietly whispers, “abhi thoda time lagega.” Debt stands at ₹467 crore, margins have been bruised by raw material inflation, but capacity has exploded to 301 million litres per annum. In short, Globus today looks like a heavyweight lifter who bulked up too fast and is now slightly out of breath—but still standing strong on the ring.
2. Introduction – A 360° Model with 180° Mood Swings
Founded in 1992, Globus Spirits didn’t wake up one fine morning and decide to become a liquor company. It evolved—slowly, stubbornly, and with grain-based discipline. Over three decades, the company built what it proudly calls a “360-degree alcohol value chain.” Translation: if alcohol can be made, moved, mixed, bottled, franchised, or branded, Globus wants a finger in that glass.
But FY24 and FY25 have been humbling. After enjoying fat margins in FY23 (thanks to benign grain prices and ethanol tailwinds), the company was hit by a sudden policy curveball—the stoppage of rice supply by FCI. Input costs shot up, EBITDA margins collapsed from ~12% to ~7%, and profitability went into detox mode. Yet, Globus didn’t freeze. Instead, it doubled down on capacity expansion, new brand launches, and diversification into beer and RTDs.
So today, Globus is neither drunk on success nor nursing a hangover. It’s that guy at the bar who ordered water, checked his wallet, and said, “Next round, maybe.”
3. Business Model – WTF Do They Even Do?
Explaining Globus Spirits to a lazy but smart investor goes like this: imagine a liquor company that makes alcohol for itself, for others, and for the government’s ethanol blending dreams—while also bottling Bacardi on the side.
The business is split into two broad buckets.
First, the Manufacturing Segment, which now contributes about 62% of revenue (up from 41% in FY22). This includes bulk alcohol manufacturing (ENA and ethanol) and franchise bottling. In FY24, Globus sold around 208 million bulk litres of alcohol, almost double FY22 levels. Clients include industry royalty like United Spirits, Pernod Ricard, Radico, ABD, and Beam. This is boring, B2B, volume-driven, low-margin stuff—but it pays the bills.
Franchise bottling is where Globus bottles IMFL brands like United Spirits and Bacardi at its plants. Volumes here were 2.7 million cases in FY24. Revenue grew 15%, but EBITDA per litre slipped to ₹2.9 and further to ₹2.2 in Q1 FY25. Translation: work increased, profits didn’t.
Second, the Consumer Business, now 38% of revenue. This includes Globus’s own liquor brands.
