Som Distilleries FY26 Revenue Declines 14.8%

Consolidated revenue declined by 14.8% year-on-year to ₹1,233 crores
EBITDA declined to ₹89.7 crores
PAT stood at ₹10.2 crores
Beer volumes declined by 20% to 187.19 lakh cases
IMFL business recorded volume growth of 32% to 15.03 lakh cases
Total volume stood at 202.22 lakh cases, representing a decline of 17.7% year-on-year

Performance significantly impacted by temporary license-related disruption at the Bhopal facility
Subdued demand conditions in Karnataka and Odisha, the company's key markets
Industry-wide inflationary pressures from geopolitical uncertainties, elevated energy costs, and supply chain disruptions
Input costs relating to glass bottles, aluminum cans, barley, and logistics remained under pressure

Manufacturing license at Bhopal facility temporarily suspended
Renewal process currently underway pursuant to applicable regulatory process
Company working closely with concerned authorities
Management confident of favorable resolution and does not anticipate long-term impact on operations
Finished goods inventory from Bhopal plant has been removed and sold in the market
Bhopal plant typically contributed approximately 50% of total volumes

Continued development through wholly owned subsidiary
Project remains on schedule with trial runs commenced
₹250 crores invested during FY26 through SDBL
Commercial production expected to commence in June 2026
Expected to produce 15-20 lakh cases in FY27
Expected revenue per case: ₹600 (compared to consolidated average of ₹550)
Expected revenue contribution: Approximately ₹120 crores
Facility expected to significantly enhance production capacities and strengthen presence across North India

Improving offtake trends in Karnataka following rationalization of excise duty structure
Better performance in Tamil Nadu compared to FY24-25 and FY25-26
Karnataka contributes 30-35% of total business
Delhi market affected due to Bhopal plant suspension (supplies halted since February)
Alternate supplies arranged for Jharkhand from Odisha plant

Company maintained healthy balance sheet despite lower profitability and ongoing capex
Consolidated gross debt increased by ₹43 crores during FY26 from ₹168 crores to ₹211 crores
Gross debt-to-equity ratio remains comfortable at 0.30x (vs 0.25x previous year)
₹400 crores of credit lines already sanctioned but not utilized due to conservative approach

Company experienced credit rating downgrades due to temporary license suspension
Management expects ratings to return to original levels once license is restored
Downgrade attributed to temporary operational issues, not fundamental financial weakness

Revenue guidance: ₹1,400-1,500 crores (aiming to reach FY24-25 levels of ₹1,420-1,430 crores)
EBITDA margin guidance: Approximately 10%
Expectations based on:
Resolution of Bhopal license issue
Commissioning of UP facility
Improved performance in Karnataka
Market expansion into new regions
Growth in Tamil Nadu market

Company Secretary resigned due to personal reasons (relocation to Delhi)
Internal auditor changed as part of regular corporate governance practices
Company in process of appointing dedicated compliance officer to prevent future regulatory issues

Management maintains intention to increase promoter shareholding to 50%
Any capital infusion would be tied to specific end-use requirements, particularly Phase 2 of UP project
No immediate plans for share buybacks or warrant issuance without specific capital needs

Management expects Bhopal license resolution within "next week to 10 days" from June 2, 2026
Market share recovery in MP expected within 6 months of plant restart
Q1 FY27 expected to show improvement over Q4 FY26 due to better utilization at Hassan and Odisha plants
Company focusing on cost optimization, operational efficiencies, and premiumization initiatives to mitigate margin pressure
Long-term supply contracts in place for key inputs, though price pressures persist