Allied Blenders and Distillers reported a consolidated net profit of Rs 69.02 crore for Q2 FY27, up from Rs 62.92 crore year-on-year. Revenue grew to Rs 2,085.46 crore. Investors should note a change in the depreciation method that boosted quarterly profits and monitor ongoing tax and CSD legal disputes.
Allied Blenders and Distillers Reports Q2 Profit Growth
Revenue rose to Rs 2,085.46 crore for Q2 FY27, up from Rs 1,952.59 crore in Q2 FY26. Net profit increased to Rs 69.02 crore compared to Rs 62.92 crore in the same period last year.
Reader Takeaway: Revenue growth signals strong demand, but legal headwinds from tax and CSD disputes require cautious monitoring.
What just happened
Allied Blenders and Distillers released its financial results for the quarter ended September 30, 2026. While the top line grew by approximately 6.8% year-on-year, the company's bottom line was bolstered by a strategic change in accounting policy. Effective July 1, 2026, the company switched its depreciation method for plant and machinery from the Written Down Value (WDV) method to the Straight Line Method (SLM). This adjustment reduced depreciation expenses by Rs 4.97 crore for the quarter, directly inflating the reported profit.
Why this matters
The accounting change highlights how non-operational adjustments can influence reported earnings. Investors should analyze the core operating performance separately from these shifts. Furthermore, the company faces two significant legal hurdles that could impact future cash flows: a demand of Rs 33.99 crore from the Canteen Stores Department and ongoing income tax litigation related to a December 2023 search operation.
Risks to watch
The CSD dispute involves a demand for alleged differential trade rates from 2012–2017. With the Arbitral Tribunal stating it lacks jurisdiction, the company must pursue further legal avenues, extending the period of uncertainty. Simultaneously, appeals regarding tax demands totaling Rs 45.46 crore (including interest) for FY26 are ongoing, representing a potential financial liability that remains unresolved.
What to track next
Watch for updates on the CSD legal strategy and the final outcome of the Income Tax Department appeals. Investors should also review future quarterly reports to assess how the new depreciation policy stabilizes the reported net margins compared to previous WDV-based periods.