Financial Performance Overview

Som Distilleries and Breweries Limited reported severely impacted financial results for FY 2025-26, with consolidated PAT plunging 90% to ₹10.09 crore from ₹104.09 crore in FY25. Consolidated revenue declined 18.7% to ₹2,30,579.58 lakhs, while standalone revenue fell 14.7% to ₹82,822.04 lakhs. EBITDA dropped 56.83% to ₹780 lakhs with margins contracting from 12.48% to 6.32%.

Operational Disruption

The company suffered a major operational setback when its excise/manufacturing license at the Bhopal facility was suspended effective February 4, 2026. This caused Q4 FY26 revenue to decline 46.4% YoY to ₹182.0 crore and volumes to drop 42.6% to 34.44 lakh cases. Total FY26 volumes declined 17.7% to 202.22 lakh cases, though IMFL volumes grew 31.84% while beer volumes decreased significantly.

Significant Tax Disputes

The company faces substantial tax disputes totaling ₹6,406.31 lakhs across multiple jurisdictions including:

  • MP VAT Act: ₹2,155.08 lakhs (FY 2017-18 to 2023-24)
  • Income Tax Act: ₹2,390.14 lakhs (AY 2012-13 to 2020-21)
  • CGST Act: ₹1,841.24 lakhs (FY 2017-18 to 2024-25)
  • Service Tax: ₹896.00 lakhs (FY 2009-12)
  • Central Sales Tax Act: ₹463.48 lakhs (FY 2018-19 to 2023-24)

Capital Raising and Corporate Actions

The Board approved a ₹25 crore preferential warrant issue to promoter Deepak Arora at ₹77.81 per warrant, with 25% payment upfront and 75% payable at conversion within 18 months. The funds are intended for working capital and general corporate purposes. No dividend was recommended for FY26 to conserve cash for growth plans.

Corporate Governance and Compliance

The company maintains compliance with SEBI Listing Regulations, with certificates from practicing company secretaries confirming adherence. The board comprises 8 directors (3 executive, 1 non-executive non-independent, 4 independent). Auditors emphasized the pending manufacturing license renewal at the Bhopal plant but confirmed financial statements are prepared on a going concern basis.

Subsequent Developments

Q1 FY27 showed some recovery with total income of approximately ₹268.8 crore, EBITDA of ₹15.2 crore, and PAT of ₹1.6 crore. Commercial production commenced at the Uttar Pradesh brewery during Q1 FY27, though the application for FY27 excise license remains pending.