Allied Blenders and Distillers Reports 35.4% Profit Jump in Q2 FY26 Driven by Premium Sales and Capacity Expansion

Allied Blenders and Distillers Limited announced robust financial results for the quarter ended September 2025 (Q2 FY26), with net profit surging 35.4% year-on-year to ₹64.3 crore. Revenue from operations climbed 14% to ₹990 crore, and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) saw a 22.3% increase, reaching ₹126 crore. The company also improved its EBITDA margin to 6.4% from 5% in the prior year's comparable quarter.

The strong performance was underpinned by significant growth in its Prestige & Above (P&A) portfolio, driven by increasing consumer preference for premium spirits (premiumisation) and steady demand for its core brands. Case volumes grew by 8.4% year-on-year to 9.0 million cases. The P&A segment's volume salience rose to 47.1% and value salience to 56.9% in Q2 FY26, reflecting a strategic focus on higher-value products.

In a significant strategic move, Allied Blenders and Distillers commissioned a ₹115 crore PET bottle manufacturing unit in Telangana in September 2025, with an annual capacity exceeding 600 million bottles. This unit is part of a ₹525 crore backward integration program aimed at enhancing operational efficiency and improving gross margins by approximately 300 basis points by FY28.

Furthermore, the company's super-premium and luxury spirits subsidiary, ABD Maestro, expanded its presence into duty-free travel retail, launching offerings at Bengaluru and Delhi International Airports.

Impact: This news indicates strong operational execution and strategic foresight by Allied Blenders and Distillers. The consistent profit and revenue growth, coupled with investments in capacity and premiumization, position the company for sustained growth. This can lead to increased investor confidence and potentially a positive impact on its stock performance. The expansion into backward integration is expected to bolster margins and profitability in the long term. The entry into duty-free retail expands market reach for premium products. Impact Rating: 7/10

Difficult Terms: Net Profit: The profit remaining after all expenses, taxes, and interest have been paid. Revenue from Operations: The total income generated from the company's primary business activities before any deductions. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation): A measure of a company's operational performance, excluding financing, accounting, and tax-related costs. EBITDA Margin: Calculated by dividing EBITDA by revenue, it shows the profitability of a company's core business operations per unit of revenue. Premiumisation: The trend where consumers increasingly purchase higher-priced, premium versions of products rather than standard or economy options. Case Volumes: A unit of measurement representing the total number of packaged units (like bottles) sold by a company. Salience: The relative importance or proportion of a particular segment or product within a company's overall business. Backward Integration: A business strategy where a company gains control over earlier stages of its supply chain, such as manufacturing its own raw materials or packaging. Basis Points: A unit of measure equal to one-hundredth of a percent (0.01%). For example, 300 basis points is equal to 3%.