Shri Gang Industries Q3 FY26: ₹114 Cr Sales, ₹14 Cr Profit, 19% OPM – Tiny Distillery, Big Margins, Massive Drama?

1. At a Glance – Liquor, Leverage & Loud Numbers 🍾

Market Cap: ₹174 crore
Current Price: ₹88
Stock P/E: 11.4
Price to Book: 13.8
ROCE: 42.7%
Debt: ₹82.1 crore
3-Month Return: 13.2%
1-Year Return: -31.8%

Ladies and gentlemen, welcome to Uttar Pradesh’s very own liquor mini-empire — Shri Gang Industries & Allied Products Ltd.

Q3 FY26 numbers just dropped and they are spicy.

• Sales: ₹114 crore
• Net Profit: ₹14 crore
• OPM: 19%
• Qtr Sales Growth: 28.3%
• Qtr Profit Growth: 35.0%

For a ₹174 crore market cap company, this is not a “peg”. This is a full bottle.

But before you raise a toast — remember:

• Debt to Equity: 6.77
• Promoter holding: 39.5%
• 18% shares pledged

So is this a disciplined distillery turning premium…
Or a high-leverage bar counter that looks shiny till the bill arrives?

Let’s investigate.

2. Introduction – The UP Liquor Operator 🍶

Incorporated in 1989, Shri Gang Industries operates in one of India’s most tightly regulated and politically sensitive sectors — liquor.

They manufacture:

• Extra Neutral Alcohol (ENA)
• Indian Made Foreign Liquor (IMFL)
• UPML (country liquor)
• They also trade edible oil (because why not?)

Their biggest flex?

They bottle for United Spirits Limited (Diageo group brand owner in India). That’s not small talk. That’s serious credibility.

Revenue split FY24:

• Spirits: ~72%
• Country Liquor: ~9%
• Bottling Charges: ~9%
• By-products: ~8%

Translation:
They’re not just selling local desi. They’re part of branded IMFL supply chain.

But here’s the fun part — this is still a small-cap with:

• ₹324 crore FY25 revenue
• ₹29 crore PAT
• ₹54 crore total debt (FY25 audited)

That’s small-cap volatility meets liquor margins.

Ready to decode?

3. Business Model – WTF Do They Even Do? 🥃

Simple explanation.

They produce ENA (Extra Neutral Alcohol).

ENA = Base ingredient for whisky, rum, vodka etc.

Then they:

1. Supply ENA to big players.
2. Bottle IMFL brands for clients like United Spirits.
3. Sell their own UP-made liquor brands (Golden Cascade & Bulldozer).
4. Earn bottling charges.
5. Trade edible oil on the side.

Their Sandila (Hardoi) facility:

• ~66 KLPD distillery capacity
• ~42 lakh cases bottling annually
• 115,243 sq meter area

Think of them as:
“A backend liquor factory quietly powering bigger brands.”

The order book?
~1.20 crore bulk litres of spirits + rolling bottling orders.

Sounds stable?

Yes.

But:
Raw material = grain (rice etc.)
Grain prices = volatile.
Liquor policies = state-controlled.

So