Allied Blenders Q2 Profit Reaches Rs 69 Crore Amid Capex Push

Revenue grew 15.8% to Rs 1,152 crore while Volumes climbed 11.1% to 10 million cases.

Reader Takeaway: Strong revenue growth and premiumization are offset by supply chain costs and rising debt from heavy capex.

What just happened

Allied Blenders and Distillers reported a Q2 FY27 profit of Rs 69 crore, a 9.7% increase year-on-year. While reported revenue hit Rs 1,152 crore, the company faced significant headwinds from global supply chain disruptions, which trimmed EBITDA by Rs 29 crore. Excluding these temporary disruptions, the company estimates its EBITDA would have been Rs 172 crore, representing a 32.3% growth.

Why this matters

The company is in the middle of an aggressive Rs 1,600 crore capital expenditure program. Management believes this focus on backward integration—specifically new malt distilleries and bottling plants in Telangana and Uttar Pradesh—will improve margins by 450 basis points over the next three years. Investors are closely watching if this heavy spending delivers the projected efficiency gains.

Growth Drivers

The 'Prestige & Above' segment continues to perform, recording sales of Rs 605 crore. The 'ICONiQ White' brand remains a standout performer, delivering 3.2 million cases in the quarter, a 20.6% year-on-year increase. Management has set a target of 14 million cases for the brand in the current fiscal year.

Risks to watch

Net debt has risen to Rs 1,273 crore as of September 2026, pushing the Net Debt to EBITDA ratio to 2.2x. This is slightly above the company’s internal threshold of 2.0x, though management anticipates it will normalize by the end of the financial year. Additionally, regulatory uncertainty regarding import duties on bulk scotch remains a sector-wide concern.

Context metrics

• H1 FY27 Revenue: Rs 2,135 crore (+10.9% YoY).
• International presence: Currently in 42 countries.
• Credit Rating: Upgraded to IND AA- (Stable outlook).