Key Financial Performance (Q1 FY27 Consolidated)

  • Income from operations: INR 2,809 million (5% YoY growth)
  • EBITDA: INR 299 million
  • EBITDA margin: 11%
  • Profit after tax: INR 178 million
  • PAT margin: 6%
  • Potable alcohol division EBITDA margin: 18%

IMFL Proprietary Business Performance

  • Revenue: INR 729 million (58% YoY growth) - highest ever quarterly
  • Volume: 0.79 million cases (40% YoY growth)
  • Contribution to overall revenue: 23% (vs 17% in previous period)
  • Realization: INR 823 per case (13% YoY increase)
  • EBITDA margin: 20%

CP Series Performance

  • Volume growth: 260% YoY
  • Sales increased from 20,300 cases to 73,000 cases
  • Emerged as key growth driver in IMFL proprietary segment

Other Business Segments

ENA Business:

  • Volume: 7.3 million liters (35% YoY growth)
  • Revenue: INR 456 million (25% YoY growth)
  • Captive consumption: 59% (vs 50% in FY26)
  • Margins under pressure due to lower realization and increased grain prices

Ethanol Business:

  • Volume growth: 28% YoY
  • Realizations impacted by market oversupply and lower government quota allocation
  • Average realization down significantly due to sales to private OMCs at INR 52-54 vs government quota at ~INR 64
  • Expected improvement in quota allocation from October onwards

IMFL License Business:

  • Volume: 0.1 million cases
  • Revenue: INR 132 million
  • Impacted by change in business arrangement with Inbrew from licensing to contract manufacturing

Overall IMFL Business:

  • Volume: 1.7 million cases
  • Revenue: INR 734 million
  • EBITDA margin: 18%

Strategic Initiatives and Expansion

RTD (Ready-to-Drink) Launch:

  • Successfully launched in Madhya Pradesh with 5 flavors at INR 120 per 330mL can (8% alcohol by volume)
  • Registration process underway for 8 additional states: Chhattisgarh, Jharkhand, Rajasthan, Delhi, Karnataka, West Bengal, and Goa
  • Expected meaningful contribution from next quarter onwards

New Product Launches:

  • Premium tequila planned for Q2 launch in Madhya Pradesh, followed by phased rollout
  • Premium brandy planned for introduction in Kerala
  • Single malt whiskey variants (entry and premium) in development, expected revenue from Q3 next year

Market Expansion:

  • Successfully entered Odisha market with encouraging initial response
  • Working towards entering Karnataka and Andhra Pradesh
  • Planning to enter Karnataka market in current quarter

SDF Acquisition (Kerala):

  • Strategic acquisition to strengthen bottling capabilities and operational efficiency
  • Upgradation and automation underway with new automatic machinery installation
  • Expected to become operational by December 2026
  • Full-fledged operations planned from April 2027
  • Capacity build-up target: 3.5-4 lakh cases per month

Backward Integration:

  • Malt maturation underway for captive consumption and single malt whiskey
  • Expected to enhance profitability from next year onwards

Operational Details

Grain Prices:

  • Average grain price: INR 21,000 per metric ton
  • Recent rains in Madhya Pradesh expected to cool off grain prices

Ethanol Breakeven:

  • Estimated breakeven point: INR 57-60 per liter
  • Current realization below breakeven, but company running plant for marginal contribution and fixed cost coverage

Guidance and Outlook

  • FY 2026-27: Confident to deliver ~30% volume growth in IMFL proprietary portfolio
  • Expect improved ethanol quota allocation and realizations from October tenders
  • Continue focus on improving product mix and creating long-term stakeholder value

Management Commentary

  • Company remains fully confident in long-term business growth
  • Strategic focus on scaling IMFL proprietary portfolio through existing brand growth and new product pipeline
  • Investments continue in brand building, consumer engagement, and sales/marketing manpower
  • Commitment to building sustainable brand equity remains unwavering

Geographic Performance

  • Central province continues as key growth driver for proprietary portfolio
  • Maharashtra showing pickup with 700-900 cases monthly average
  • UP slowed down due to policy changes in lifting
  • Chhattisgarh and Delhi expected to show substantial growth
  • Kerala and Madhya Pradesh contribute 80% of IMFL proprietary revenue

Product Performance Details

  • Nicobar Gin: 500-700 cases monthly across various states
  • Hillfort Whiskey: ~1,000 cases monthly, with revamped blend and brand strategy underway
  • Target to create 1-2 million case brands in 2-3 years

Market Share Targets

  • RTD: 3-4% market share in states entered
  • Malt: 4% market share wherever states entered
  • Tequila: 10-15% market share in the INR 5,000-7,000 MRP segment (40,000 cases annual market)

Marketing Strategy

  • 360-degree approach including branding, advertising, shop/bar visibility, sales promoters, and CSM schemes
  • Focus on Meta platforms for brand storytelling
  • Event sponsorship with product rather than cash
  • Premium and exclusive events planned for tequila launch
  • Package redesign every 3-4 years to maintain consumer interest