Som Distilleries Q1 PAT Plunges 96% on License Disruption

Total volume was 45.79 lakh cases, a decline of 48% year-on-year (YoY).
Beer volume was 45.00 lakh cases, a decline of 47% YoY.
IMFL volume was 0.51 lakh cases, a decline of 88% YoY.
Beer represented 98.90% of total volume and 93.29% of revenue in Q1 FY27.
Key drivers: Performance was impacted by a temporary license-related disruption at the Bhopal facility which materially reduced operating volumes. This was partially offset by a strong rebound in demand and market share in Karnataka and a strong recovery in Odisha.

Not Specified

Revenue: ₹268.8 crore.
Gross Profit: ₹76.1 crore (28.33% margin).
EBITDA: ₹15.2 crore (5.70% margin).
PAT: ₹1.6 crore (0.62% margin).
YoY comparison: Revenue declined 49% YoY from a base of ₹530.0 crore in Q1 FY26. Gross Profit declined from ₹190.0 crore (35.90% margin). EBITDA declined 79% YoY from ₹72.1 crore (13.60% margin). PAT declined 96% YoY from ₹42.1 crore (7.90% margin).
Drivers of financial performance: Lower operating volumes reduced operating leverage. Higher key raw material and packaging costs further pressured margins.
Comparison to market estimates: Not Specified.
Key Risks: Raw material and packaging cost pressure; regulatory disruptions.

Domestic vs Export/Regional Revenue: Not Specified.
Regional Breakdown: Performance commentary provided for specific states: Madhya Pradesh (disruption), Karnataka (strong rebound), Odisha (strong recovery), and Uttar Pradesh (new plant commissioning).

Gross Debt / Equity: 0.31x as of June 2026 (0.30x as of March 2026).
Gross debt increased by ₹10 crore during Q1.
Financial Health Insights: The balance-sheet leverage remained broadly stable. Capacity was added without a material step-up in leverage.

Capital Expenditure: Not Specified.
Free Cash Flow: Not Specified.
Operating Cash Flow: Not Specified.
Net Debt Movement: Gross debt increased by ₹10 crore during Q1.
Investment Rationale: The new Uttar Pradesh facility strengthens the growth pipeline and provides a platform for market expansion.

Investments in Innovation: Commercial production commenced at the Woodpecker Green Agri plant in Uttar Pradesh, adding 10 million cases of annual beer capacity.
Expected impact on growth: The focus shifts to ramp-up, utilization, and regional market penetration from this new platform.
Strategic Rationale: The four-location manufacturing footprint expands capacity and regional market access. The strategy includes premiumisation and selectively introducing premium products in markets with strong distribution.

Macro/Industry Trends: Not Specified.
Impact on Company: Market conditions were softer in certain key markets at the start of the quarter.

Strategic Outlook: Management remains confident about the underlying business, with improving conditions in key states (Karnataka, Odisha) and the expanded manufacturing footprint providing a stronger platform for the balance of FY2026–27. The key catalyst for a broader revival is the normalization of operations in Madhya Pradesh.
FY Guidance: Not Specified.
Market Share Targets: Not Specified.
Risks and Opportunities: The current situation in Madhya Pradesh is expected to be resolved, allowing normal operations to resume shortly.

New brand Mahavat (a mid-premium whisky priced ₹1,000–1,100) was rolled out in Madhya Pradesh, Delhi, and Uttar Pradesh.
Brands Power Cool (strong beer) and Sunny Beaches (premium beer) were highlighted, with Sunny Beaches showing encouraging traction in Karnataka.
Woodpecker Premium Beer was named India's Leading Brand Rising Star 2025.
The company has an ESG disclosure framework covering 415 subfactors across Environment (41), Social (66), Governance (99), and Resilience/Board/Company/Others (209).