At a Glance
Globus Spirits Ltd, the self-proclaimed “360° alcohol value chain” master, just posted Q1 FY26 numbers. Revenue sipped up to ₹699 Cr (YoY +9%), while PAT took a hungover stagger to ₹19 Cr, translating to an EPS of ₹6.4. Operating margins recovered slightly to 8% but remain far from the FY22 glory days. P/E? A mind-numbing 132x – that’s unicorn-level optimism for a company whose ROE is barely 2.5%. Investors seem to be betting on a miracle cocktail of premiumisation and capacity expansion. But until then, this stock’s valuation is like a ₹2000 whiskey served in a plastic cup.
Introduction
Ah, Globus Spirits – the company that literally makes the party happen. From desi daaru (IMIL) to premium IMFL, bulk ethanol to DDGS (animal feed), they have their hands in every barrel. Yet, the financials scream: “Hangover alert!”
The last few quarters have been a rollercoaster of OPM slides and PAT crashes, thanks to rising raw material costs, high finance expenses, and a taxation game only a CA could love. Still, the market continues to price this company like it’s the next Diageo. Spoiler: it’s not. But it’s also not your average low-margin liquor company; it has the grain-to-glass edge. Whether that edge cuts through competition or bleeds cash – that’s the story for FY26.
Business Model (WTF Do They Even Do?)
Globus Spirits runs on a four-pronged liquor model:
- Indian Made Indian Liquor (IMIL): Low-cost, mass-market magic. High volumes, razor-thin margins.
- Indian Made Foreign Liquor (IMFL): Premium whiskies, vodkas – higher margins, but tough competition.
- Bulk Alcohol & Ethanol: They supply to other liquor companies and the ethanol blending program.
- Franchise Bottling & DDGS: Think contract manufacturing with a side hustle in animal feed.
They’re also India’s first to set up a grain-based distillery (cheers to that) and have carved a niche in selling DDGS (Distillers Dried Grains with Solubles) to feed cattle. Essentially, they try to monetise every drop. Unfortunately, monetisation hasn’t translated to monster profits lately – margins have evaporated like open whiskey in the sun.
Financials Overview
Q1 FY26
