Associated Alcohols & Breweries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Associated Alcohols & Breweries Ltd filed with BSE on 30 Jul 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
Associated Alcohols & Breweries reported consolidated Q1 FY27 income from operations of INR2,809 million, up 5% year-on-year, with EBITDA margin at 11% and PAT margin at 6%. The IMFL proprietary business posted its highest ever quarterly revenue of INR729 million, growing 58% year-on-year in value and 40% in volume, while the ethanol segment saw margin pressure from oversupply and lower government quota allocation. Management discussed progress on the SDF Kerala bottling facility, malt maturation for a planned single malt launch, and upcoming tequila and RTD product rollouts.
Numbers mentioned
IMFL proprietary revenue: INR729 million (Q1 FY27)
p. 3
“I am pleased to report our highest ever quarterly IMFL proprietary revenue of INR729 million, registered a robust of 58% year-on-year growth in value and 40% year-on-year growth in volume.”
Tushar Bhandari, page 3 of the filed PDF · View the filing
CP series volume growth: 260% year-on-year, from 20,300 to 73,000 cases (Q1 FY27)
p. 3
“The CP series delivered an impressive 260% year-on-year volume growth in Q1 FY27 with the sales increase from 20,300 cases to 73,000 cases, reflecting strong brand equity and reinforcing its leadership position within the segment.”
Tushar Bhandari, page 3 of the filed PDF · View the filing
IMFL proprietary contribution to overall revenue: 23% (Q1 FY27)
p. 3
“In Q1 FY 2026-27, IMFL proprietary contributed 23% of our overall revenue, compared to 17% in FY 2026-27, reflecting in the growth contribution of our higher-margin proprietary portfolio.”
Tushar Bhandari, page 3 of the filed PDF · View the filing
Consolidated income from operations: INR2,809 million (Q1 FY27)
p. 5
“On a consolidated basis, income from operations for Q1 FY27 stood at INR2,809 million, registering a 5% year-on-year growth.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
EBITDA: INR299 million, 11% margin (Q1 FY27)
p. 5
“EBITDA for the quarter stood at INR299 million with an overall EBITDA margin of 11%, while profit after tax was INR178 million, translating into PAT margin of 6%.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
Potable alcohol division EBITDA margin: 18% (Q1 FY27)
p. 5
“EBITDA margin for potable alcohol division stood at healthy 18%.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
IMFL proprietary volume growth: 40% year-on-year to 0.79 million cases (Q1 FY27)
p. 5
“We are pleased to report that we have exceeded our earlier volume growth guidance, delivering an impressive 40% year-on-year volume growth to 0.79 million cases.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
IMFL proprietary revenue growth: 58% year-on-year to INR792 million (Q1 FY27)
p. 5
“Revenue from the segment grew even faster, increasing 58% year-on-year to INR792 million, reflecting a favourable product mix and improved realizations.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
CP series realization per case: INR823 per case, up 13% year-on-year (Q1 FY27)
p. 5
“This is reflected in the enhanced realization, which has increased by 13% year-on-year to INR823 per case.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
IMFL proprietary EBITDA margin: 20% (Q1 FY27)
p. 5
“Despite continued investments in brand building and market expansions, we maintain a healthy IMFL proprietary EBITDA margin of 20%.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
Captive ENA consumption: 59% (Q1 FY27)
p. 5
“Captive consumption of ENA in Q1 FY27 stands at 59% compared to 50% in FY26.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
ENA business volume and revenue growth: 35% volume growth to 7.3 million liters; 25% revenue growth to INR456 million (Q1 FY27)
p. 5
“The ENA business delivered 35% year-on-year volume growth to 7.3 million liters while revenue grew 25% year-on-year to INR456 million.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
Ethanol volume growth: 28% year-on-year (Q1 FY27)
p. 5
“While we witnessed 28% year-on-year growth in volumes, realizations were impacted due to oversupply in the market and lower quota allocation by the government.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
IMFL license business volume and revenue: 0.1 million cases, INR132 million (Q1 FY27)
p. 5
“As a result, the segment reported volume of 0.1 million cases and revenue of INR132 million during Q1 FY 2026-27.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
IMFL business volume and revenue: 1.7 million cases, INR734 million, 18% EBITDA margin (Q1 FY27)
p. 5
“The IMFL business volumes stood at 1.7 million cases, while revenue was INR734 million with healthy EBITDA margin of 18%.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
Average grain price: INR21,000 per metric ton (Q1 FY27)
p. 12
“Grain prices, average grain prices are INR 21,000 of this quarter.”
Dilip Kumar Inani, page 12 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.
IMFL proprietary volume growth — around 30% · FY 2026-27
stated firmly by Tushar Bhandari
p. 4
“For FY 2026-27, we remain confident to deliver around 30% volume growth in our IMFL proprietary portfolio while continuing to improve our product mix and create long-term value for the stakeholders.”
Tushar Bhandari, page 4 of the filed PDF · View the filing
SDF Kerala plant operational status — operational · December '26
stated firmly by Tushar Bhandari
p. 4
“Installation of the new automatic machinery is currently underway, and we expect the plant to become operational by December '26.”
Tushar Bhandari, page 4 of the filed PDF · View the filing
Premium tequila and brandy launch — launch · Q2
stated firmly by Tushar Bhandari
p. 4
“We continue to make steady progress towards the launch of our premium tequila and brandy in Q2.”
Tushar Bhandari, page 4 of the filed PDF · View the filing
SDF full-fledged operations — full-fledged operation from SDF · April onwards
stated firmly by Tushar Bhandari
p. 6
“And from April onwards, we are planning to do a full-fledged operation from SDF.”
Tushar Bhandari, page 6 of the filed PDF · View the filing
IMFL license business steady-state volume — around 1 million cases
stated as an aspiration by Tushar Bhandari
p. 7
“But if you would just want to take on the licensed brand per se, so licensed brand on a ballpark figure, we will do around 1 million cases, if you talk about only licensed.”
Tushar Bhandari, page 7 of the filed PDF · View the filing
Single malt revenue contribution — start showing in balance sheet · Q3 next year onwards
stated conditionally by Tushar Bhandari
p. 10
“So, we expect the revenue of this to start being shown in the balance sheet in, I think, Q3 next year onwards.”
Tushar Bhandari, page 10 of the filed PDF · View the filing
RTD market share — 3% to 4%
stated as an aspiration by Tushar Bhandari
p. 13
“but we intend to capture in RTD almost 3% to 4% market in the states which we enter.”
Tushar Bhandari, page 13 of the filed PDF · View the filing
Malt market share — around 4%
stated as an aspiration by Tushar Bhandari
p. 13
“In the malt, again, we intend to capture over the period of time around 4% of the market share wherever states we enter.”
Tushar Bhandari, page 13 of the filed PDF · View the filing
Tequila market share — 10% to 15%
stated as an aspiration by Tushar Bhandari
p. 13
“we would like to capture in the initial phases, at least 10% to 15% of the market share.”
Tushar Bhandari, page 13 of the filed PDF · View the filing
Proprietary brand milestone — 1 or 2 brands reaching 1 million cases · coming 2 to 3 years
stated as an aspiration by Tushar Bhandari
p. 14
“We want to bring at least 1 or 2 brands, which will be 1 million case brand in coming 2 to 3 years.”
Tushar Bhandari, page 14 of the filed PDF · View the filing
IMFL proprietary revenue growth rate — 30% year-on-year
stated firmly by Tushar Bhandari
p. 16
“So, in our guidance also, we have earlier also mentioned that we expect the revenue of the IMFL business to grow at the rate of 30% year-on-year.”
Tushar Bhandari, page 16 of the filed PDF · View the filing
Ethanol quota allocation — coming months
stated conditionally by Dilip Kumar Inani
p. 5
“However, we expect quota allocation to improve in the coming months.”
Dilip Kumar Inani, page 5 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 there are no plans to shift the plant to ENA and will continue producing ethanol only.
Answered by Tushar Bhandari
Asked by Vinay Rawal: Whether the company plans to shift ethanol capacity toward ENA production given ethanol operating losses.
p. 6
“No. See, we do not have any plans right now to shift the plant into producing ENA. We will be producing ethanol only.”
Tushar Bhandari, page 6 of the filed PDF · View the filing
Management said the transition will be phased, starting in December and full operations from April.
Answered by Tushar Bhandari
Asked by Vinay Rawal: When will the SDF plant start contributing to EBITDA.
p. 6
“It will be done in December. First, we'll start and then we'll full-fledged move the operation from 1st of April.”
Tushar Bhandari, page 6 of the filed PDF · View the filing
Management attributed the decline to the closure of the Inbrew arrangement and a flat/degrowing licensed category.
Answered by Dilip Kumar Inani
Asked by Pawandeep Bhatia: Why IMFL licensed revenue declined despite strong proprietary growth.
p. 7
“No. Revenue in IMFL licensing business for Diageo has remained almost flat and the revenue was in Inbrew in last quarter was there. So that is reduced.”
Dilip Kumar Inani, page 7 of the filed PDF · View the filing
Management explained government tender realization was around INR64 versus private OMC sales at INR52-54.
Answered by Tushar Bhandari
Asked by Pawandeep Bhatia: What is the ethanol realization compared to government floor price.
p. 7
“So, our average realization from the sale to the government, which is the quota which we get on an annual tender was around about INR64; was INR64 because it was a mix of maize and FCI rice.”
Tushar Bhandari, page 7 of the filed PDF · View the filing
Management indicated breakeven would be around INR57 to INR60.
Answered by Dilip Kumar Inani
Asked by Shreya Chatterjee: What is the breakeven realization for the ethanol business.
p. 9
“It should be around INR57 to INR60, in between.”
Dilip Kumar Inani, page 9 of the filed PDF · View the filing
Management attributed the margin decline mainly to the ethanol business.
Answered by Dilip Kumar Inani
Asked by Disha: Why did EBITDA margin fall from 14% to 11% despite revenue growth.
p. 12
“It is mainly because of ethanol business.”
Dilip Kumar Inani, page 12 of the filed PDF · View the filing
Management confirmed the company is losing money per liter on ethanol at current realizations but running the plant for marginal contribution.
Answered by Dilip Kumar Inani
Asked by Manoj: What is the current raw material cost economics for ethanol production versus realization.
p. 13
“Yes, it is coming around, let us say, INR57 with all the cost, INR57, INR58.”
Dilip Kumar Inani, page 13 of the filed PDF · View the filing
Management said there are no plans to spin off ethanol, viewing it as a professionally managed vertical already reported separately.
Answered by Tushar Bhandari
Asked by Mitesh: Should the ethanol business be spun off into a separate company to reduce earnings volatility.
p. 14
“No, no, no. There is no plans to having it up as a separate company.”
Tushar Bhandari, page 14 of the filed PDF · View the filing
Management said IMFL margin fell due to raw material price increases, and IMIL volumes are capped by government quota.
Answered by Dilip Kumar Inani
Asked by Sumit Agarwal: Why did IMFL margins decline from 22% to 20% and why is IMIL revenue flattish.
p. 15
“Yes. Basically, in the margin of IMFL reduced because of the raw material prices increasing.”
Dilip Kumar Inani, page 15 of the filed PDF · View the filing
Management said 80% of proprietary revenue comes from Kerala and Madhya Pradesh.
Answered by Tushar Bhandari
Asked by Rajesh Shah: What is the split of IMFL proprietary revenue between Kerala/MP and other states.
p. 16
“Out of the total IMFL proprietary portfolio, 80% contribution comes from these 2 major states.”
Tushar Bhandari, page 16 of the filed PDF · View the filing
Management explained Hillfort's premium blend was not accepted in all markets and described the RTD market as small but fast growing.
Answered by Tushar Bhandari
Asked by Pawandeep Bhatia: Why has Hillfort struggled to scale and what is the RTD addressable market.
p. 17
“However, that is not being accepted that kind of blend in the other markets as well.”
Tushar Bhandari, page 17 of the filed PDF · View the filing
Risks flagged
Ethanol realizations impacted by market oversupply and lower government quota allocation
p. 5
“The ethanol performance during the quarter has been a mixed bag. While we witnessed 28% year-on-year growth in volumes, realizations were impacted due to oversupply in the market and lower quota allocation by the government.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
Rising grain prices pressuring ENA and ethanol margins
p. 5
“However, margin remained under pressure during the quarter due to lower realization and increase in grain prices.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
Impact of Inbrew business arrangement change on IMFL license segment
p. 5
“Our IMFL license business was impacted due to changes in business arrangement with Inbrew from licensing to contract manufacturing.”
Dilip Kumar Inani, page 5 of the filed PDF · View the filing
Uncertainty in UP market due to policy changes
p. 8
“UP, there has been a certain change in the policy of lifting. So UP slowed down.”
Tushar Bhandari, page 8 of the filed PDF · View the filing
Elevated grain prices remain a subjective and uncertain cost pressure
p. 12
“But that is all subjective right now because the grain price is also elevated right now.”
Tushar Bhandari, page 12 of the filed PDF · View the filing
Difficulty scaling Hillfort due to competition from established global brands
p. 10
“So, it's very difficult to work in that.”
Tushar Bhandari, page 10 of the filed PDF · View the filing
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