Allied Blenders and Distillers Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Allied Blenders and Distillers Ltd filed with BSE on 21 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Allied Blenders and Distillers reported consolidated FY26 income from operations of Rs 3,949 crore, up 11.5% year-on-year, with EBITDA of Rs 568 crore and PAT of Rs 220 crore. Q4 FY26 income from operations grew 9.1% to Rs 1,020 crore with EBITDA up 21.2% to Rs 182 crore, driven by Prestige & Above volume growth of 20.5% led by ICONiQ White. Management outlined FY27 guidance of mid-teens consolidated topline growth, margins broadly in line with FY26, and reiterated an FY28 EBITDA margin target of 18%, alongside continued backward integration and premiumization investments.
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Numbers mentioned
Income from operations: ₹3,949 crores (FY26)
p. 3
“On a consolidated basis, income from operations for FY26 stood at ₹3,949 crores, registering a growth of 11.5% year-on-year.”
Alok Gupta, page 3 of the filed PDF · View the filing
EBITDA: ₹568 crores (FY26)
p. 3
“We reported highest ever EBITDA of ₹568 crores, a growth of 25.8% over last year EBITDA of ₹451 crores, and EBITDA margin expanded by 163 basis points to 14.4%.”
Alok Gupta, page 3 of the filed PDF · View the filing
PAT: ₹220 crores (FY26)
p. 3
“We delivered highest ever PAT of ₹220 crores, reflecting the benefits of improved gross margins, premium mix enhancement, operating leverage and disciplined cost management.”
Alok Gupta, page 3 of the filed PDF · View the filing
Adjusted PAT: ₹266 crores (FY26)
p. 3
“Adjusted for the same, the adjusted PAT for FY26 would have been ₹266 crores, which is 36.3% over last financial year's PAT of ₹195 crores.”
Alok Gupta, page 3 of the filed PDF · View the filing
Standalone income from operations: ₹3,909 crores (FY26)
p. 4
“Income from operations grew by 10.4% to ₹3,909 crores, while EBITDA increased by 33.4% to ₹604 crores.”
Alok Gupta, page 4 of the filed PDF · View the filing
Standalone EBITDA margin: 15.5% (FY26)
p. 4
“Stand-alone EBITDA margin improved significantly by 267 basis points to 15.5%, while PAT grew by 34.1% to ₹268 crores, highlighting the strength and profitability profile of our core operations.”
Alok Gupta, page 4 of the filed PDF · View the filing
Q4 income from operations: ₹1,020 crores (Q4 FY26)
p. 4
“Income from operations for the quarter stood at ₹1,020 crores, reflecting a growth of 9.1% year-on-year, and EBITDA increased by 21.2% to a record ₹182 crores for the quarter.”
Alok Gupta, page 4 of the filed PDF · View the filing
Q4 EBITDA margin: 17.9% (Q4 FY26)
p. 4
“EBITDA margin expanded from 16.1% to 17.9%, highlighting continued improvement in business quality and operating leverage.”
Alok Gupta, page 4 of the filed PDF · View the filing
P&A volume growth: 20.5% (Q4 FY26)
p. 4
“Growth during the quarter continued to be led by P&A category, which delivered strong year-on-year volume growth of 20.5%, reaching to 4.4 million cases.”
Alok Gupta, page 4 of the filed PDF · View the filing
Gross margin: 48.2% (Q4 FY26)
p. 5
“From a profitability perspective, gross margin expanded sharply by 480 basis point on year-on-year basis to 48.2%, supported by a favourable commodity and a packaging cost environment along with backward integration benefits.”
Alok Gupta, page 5 of the filed PDF · View the filing
Operating cash flow: ₹362 crores (FY26)
p. 5
“Operating cash flow improved to ₹362 crores during FY26, driven by strong profitability and sustained working capital discipline.”
Alok Gupta, page 5 of the filed PDF · View the filing
Net debt-to-EBITDA: 1.7x (as of March '26)
p. 5
“Net debt-to-EBITDA stood at 1.7x as of March '26, comfortably within our stated framework of below 2x.”
Alok Gupta, page 5 of the filed PDF · View the filing
Net debt to equity: 0.6x (as of March '26)
p. 5
“Similarly, net debt to equity remained at 0.6x, well below our stated framework of 0.75x.”
Alok Gupta, page 5 of the filed PDF · View the filing
ICONiQ White sales: 10.7 million cases (FY26)
p. 4
“Complementing this momentum is the continued success of ICONiQ White, which crossed a significant milestone and recorded sales of 10.7 million cases during FY26 and continues to be one of the fastest-growing millennial spirit brands globally.”
Alok Gupta, page 4 of the filed PDF · View the filing
Dividend: 270%, ₹5.4 per equity share (FY26)
p. 4
“the Board of Directors has recommended a dividend of 270%, which is ₹5.4 per equity share of ₹2 each for the financial year FY26 for the approval of the shareholders at the ensuing Annual General Meeting of the company.”
Alok Gupta, page 4 of the filed PDF · View the filing
Export revenue: ₹235 crores (FY26)
p. 6
“Export revenue grew by 14.1% year-on-year to ₹235 crores, supported by our asset-light and high-margin operating model.”
Alok Gupta, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Consolidated topline growth — mid-teens · FY27
stated firmly by Alok Gupta
p. 8
“Overall, we expect the top line growth at a consolidated level to be in the range of mid- teens at the backdrop of higher investment in further scaling up ICONiQ White, arrest de-growth of the other 3 millennial brand and establishment of super premium to luxury portfolio of ABD Maestro.”
Alok Gupta, page 8 of the filed PDF · View the filing
EBITDA margin — in line with FY26 margin · FY27
stated conditionally by Alok Gupta
p. 14
“So, the guidance that we are giving is that the FY27 overall margins, we should be hold on to the FY26, if not better it.”
Alok Gupta, page 14 of the filed PDF · View the filing
EBITDA margin target — 18% · FY28
stated firmly by Alok Gupta
p. 15
“Our guidance was 17% EBITDA margin by FY28. If you would notice, we have increased by 100 basis points to 18%, and we will stay with that guidance.”
Alok Gupta, page 15 of the filed PDF · View the filing
Backward integration margin benefit — approximately 300 basis points by FY28, incremental 100 bps by FY29 · FY28-FY29
stated firmly by Alok Gupta
p. 6
“Phase 1 and Phase 2 initiatives are expected to contribute approximately 300 basis points towards EBITDA margin enhancement by FY28, and an incremental margin improvement of nearly 100 basis points by FY29.”
Alok Gupta, page 6 of the filed PDF · View the filing
Mass premium and other category growth — low to mid-single digits
stated as an aspiration by Alok Gupta
p. 7
“Through a combination of above, we expect mass premium and other category to grow by low to mid-single digits.”
Alok Gupta, page 7 of the filed PDF · View the filing
P&A category growth — high teens · by FY28
stated as an aspiration by Alok Gupta
p. 7
“through a combination of above, we expect P&A category to grow at high teens by FY28.”
Alok Gupta, page 7 of the filed PDF · View the filing
Malt distillery project — operational · H1 FY27
stated firmly by Alok Gupta
p. 5
“Malt Distilleryproject in Telangana is expected to become operational during H1 FY27.”
Alok Gupta, page 5 of the filed PDF · View the filing
ENA distillery expansion — operational · H1 FY28
stated firmly by Alok Gupta
p. 5
“Similarly, ENA distillery expansion project in Maharashtra is expected to become operational during H1 FY28.”
Alok Gupta, page 5 of the filed PDF · View the filing
ABD Maestro revenue — ₹100 crores · FY27
stated as an aspiration by Alok Gupta
p. 12
“I saying as far as ABD Maestro is concerned, we are hoping to cross ₹100 crores mark soon in terms of annual.”
Alok Gupta, page 12 of the filed PDF · View the filing
UK FTA benefit timing — comes into effect · Q2 FY27
stated conditionally by Alok Gupta
p. 9
“Basically, as we understand, Q2 looks like a distinct possibility that the FTA will come in place.”
Alok Gupta, page 9 of the filed PDF · View the filing
ESOP charge — ₹5 crores to ₹6 crores per quarter · FY27
stated firmly by Alok Gupta
p. 14
“I think, on a quarterly basis, you could see a number of about ₹5 crores to ₹6 crores.”
Alok Gupta, page 14 of the filed PDF · View the filing
Revenue growth (ABDL) — high teens · next 3 years
stated as an aspiration by Amar Sinha
p. 10
“we see a revenue growth in the next 3 years to reach high teens.”
Amar Sinha, page 10 of the filed PDF · View the filing
Gross margin — 48% to 50% · next 3 years
stated as an aspiration by Amar Sinha
p. 11
“From a level of 45% it would be my endeavour that over the next 3 years, we take it to 48% to 50% because gross margins in the alcobev space in India are still very low, and I think there is huge potential.”
Amar Sinha, page 11 of the filed PDF · View the filing
EBITDA margin — cross 20% · next 3 years
stated as an aspiration by Amar Sinha
p. 11
“EBITDA margin, hopefully with a 50% gross margin, I think should cross the 20% mark easily over the next 3 years.”
Amar Sinha, page 11 of the filed PDF · View the filing
Return on capital — around 25% · next 3 years
stated as an aspiration by Amar Sinha
p. 11
“The return on capital, which is a prudent capital allocation that I see should be in the region of 25% over the next 3 years.”
Amar Sinha, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said margins would face short-term pressure from geopolitical issues but expects FY27 margins to be broadly in line with FY26, supported by UK FTA, Telangana price hikes, and capex benefits.
Answered by Alok Gupta
Asked by Abneesh Roy: What is the outlook on near-term margins given FTA benefits, price hikes, and inflation pressures?
p. 9
“But overall, for FY27, we should be able to, by and large, deliver margins no different than FY26.”
Alok Gupta, page 9 of the filed PDF · View the filing
Management said the Telangana price increase is expected but likely from H2, and Karnataka's policy outcome for Officer's Choice could be neutral to positive though the market is small for them.
Answered by Alok Gupta
Asked by Abneesh Roy: Will Telangana price hikes come through soon, and how will Karnataka's slab changes affect Officer's Choice?
p. 10
“We are hopeful that in Q2 sometime, this price increase should come through, but better to plan from an H2 perspective.”
Alok Gupta, page 10 of the filed PDF · View the filing
Management said ICONiQ already has 100% domestic distribution, is exported to 9 countries, and its aspiration is to become a market leader brand.
Answered by Alok Gupta
Asked by Nitin: What is ABD's aspiration for ICONiQ White in FY27 and its state-wise distribution plans?
p. 12
“I think our aspiration is that we believe truly that ICONiQ can be a market leader brand and how quickly we can get there is really what keeps us excited.”
Alok Gupta, page 12 of the filed PDF · View the filing
Management confirmed they do not intend to breach their leverage covenants despite the capex cycle.
Answered by Alok Gupta
Asked by Nitin: Will the company maintain net debt to EBITDA and net debt to equity ratios within limits during the accelerated capex phase?
p. 13
“Nitin, we are quite committed. Our entire capex investment will be a combination of internal accruals and borrowing whenever required, but we do not intend breaching these covenants at all.”
Alok Gupta, page 13 of the filed PDF · View the filing
Management said both brands are over 10 years old in a highly competitive segment, and marketing tests on SRB7 have shown early signs of arresting decline and returning to low single-digit growth.
Answered by Alok Gupta
Asked by Mehul: What issues are affecting OC Blue and Sterling Reserve B7, and will their decline be arrested in FY27?
p. 14
“Now that we are satisfied that the marketing program that we put on SRB7 indeed not only arrest de-growth, is also able to bring some growth back, we are happy to contribute a larger A&P sum towards the brand.”
Alok Gupta, page 14 of the filed PDF · View the filing
Management explained margins would see contraction in Q1 and early Q2 due to the war impact, followed by expansion through H2 as FTA, Telangana price hikes and capex benefits kick in.
Answered by Alok Gupta
Asked by Mehul: Is the FY27 margin guidance a conservative base case or reflective of actual expectations, given West Asia war-related pressure?
p. 14
“So, what we'll see is some bit of margin contraction in Q1, early Q2. We then will see margin expansion happening.”
Alok Gupta, page 14 of the filed PDF · View the filing
Management attributed about 30 basis points to the PET unit and the rest to price increases, trade spend control and state brand mix.
Answered by Alok Gupta
Asked by Dhiraj Mistry: How much of the gross margin expansion came from backward integration versus raw material price benefits?
p. 16
“For the current financial year, as you know, that only the PET unit, by and large, is operational and the margin expansion on account of that would be about 30 basis points or so.”
Alok Gupta, page 16 of the filed PDF · View the filing
Management acknowledged some cannibalization but said ICONiQ is primarily drawing younger consumers and taking share from the broader Deluxe and Prestige segment.
Answered by Alok Gupta
Asked by Dhiraj Mistry: Is ICONiQ White cannibalizing growth of Sterling Reserve B7 and OC Blue?
p. 16
“To your question that is it taking shares away from SRB7, it is taking share away from all brands operating in that segment, including SRB7.”
Alok Gupta, page 16 of the filed PDF · View the filing
Management said receivables and overdues declined quarter-on-quarter and dues from FY24 and FY25 have been fully cleared.
Answered by Amar Sinha
Asked by Dhiraj Mistry: What is the status of Telangana receivables and overdue amounts?
p. 17
“There's nothing pending from the last 2 years, which is FY24 and FY25. There's nothing pending. They have cleared up the dues.”
Amar Sinha, page 17 of the filed PDF · View the filing
Management said the aspiration is to build a successful Prestige brandy and Prestige vodka in the 30-40 million case non-whisky segment as the next phase of growth.
Answered by Alok Gupta
Asked by Kaustubh Pawaskar: Which other brands could become millionaire brands alongside ICONiQ over the medium to long term?
p. 19
“So that we see as the next phase of growth.”
Alok Gupta, page 19 of the filed PDF · View the filing
Management attributed the rise to proactive scotch buying ahead of rupee depreciation and smaller-batch, high-NSV ABD Maestro production.
Answered by Alok Gupta
Asked by Kaustubh Pawaskar: Why have inventory days increased this year?
p. 19
“One is that we have done some proactive buying of scotch, keeping in mind what's happening to the rupee depreciation against pound.”
Alok Gupta, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical and war-related disruption impacting exports and input costs
p. 6
“However, during the quarter 4, exports were partially impacted by geopolitical development and war-related disruption in select international markets.”
Alok Gupta, page 6 of the filed PDF · View the filing
Rising inflationary environment and geopolitical uncertainty affecting input costs
p. 8
“These gains will be partially offset by a rising inflationary environment, ongoing geopolitical uncertainty impacting input cost, incremental ESOP charge, which was not applicable last year, and continued investment behind our brands through calibrated marketing and A&P spend to support long-term growth.”
Alok Gupta, page 8 of the filed PDF · View the filing
Margin contraction in Q1 and early Q2 FY27 due to West Asia war
p. 14
“we will see in Q1 and early parts of Q2, some stress on margin on account of West Asia war.”
Alok Gupta, page 14 of the filed PDF · View the filing
OC Blue and Sterling Reserve B7 operating in a highly competitive segment against strong incumbent brands
p. 13
“As regards OC Blue and SRB7 essentially, both these brands are now more than 10 years old. They are operating in a highly competitive segment with strong number 1 and 2 brands.”
Alok Gupta, page 13 of the filed PDF · View the filing
Officer's Choice whisky facing decline requiring brand refresh to arrest it
p. 7
“The objective is to arrest decline while enabling gradual recovery and retention.”
Alok Gupta, page 7 of the filed PDF · View the filing
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