Allied Blenders Q2 FY27 Earnings Call — Analysis (NSE: ABDL)
Q2FY27 income from operations grew 15.8% YoY to ₹1,152 Cr as quarterly volume crossed 10 million cases for the first time, while management reaffirmed mid-teens revenue growth guidance and a ₹1,600 Cr backward integration capex to add 450 bps of EBITDA margin by FY29.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Income from Operations ₹1,152 Cr ( +15.8% YoY ) . Guidance raised .
Results
Income from operations stood at ₹1,152 Cr (+15.8% YoY), EBITDA at ₹143 Cr (+10.0% YoY, margin 12.4% down 66 bps YoY due to supply chain headwinds), and PAT at ₹69 Cr (+9.7% YoY).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Income from Operations | ₹1,152 Cr | +15.8% | yoy · Q2FY27 |
| Total Sales Volume | 10.0 million cases | +11.1% | yoy · Q2FY27 |
| Gross Margin | 45.3% | +90bps | yoy · Q2FY27 |
| EBITDA | ₹143 Cr | +10.0% | yoy · Q2FY27 |
| EBITDA Margin | 12.4% | -66bps | yoy · Q2FY27 |
| PAT | ₹69 Cr | +9.7% | yoy · Q2FY27 |
| Mass Premium & Others Sales | ₹468 Cr | +15.9% | yoy · Q2FY27 |
| Prestige & Above Sales | ₹605 Cr | +13.4% | yoy · Q2FY27 |
| Net Debt | ₹1,273 Cr | point_in_time · Q2FY27 · Sep-2026 | |
| Operating Cash Flow | ₹269 Cr | none · H1FY27 · H1FY27 |
Guidance
Management guided for mid-teens topline growth in FY27 with EBITDA margins broadly in line with FY26, targeting 14M cases for ICONiQ White and 450 bps cumulative EBITDA margin expansion by FY29 from backward integration.
Key themes
Premiumisation scale-up and backward integration execution
Operational commentary
- Commissioned captive malt distillery at Rangapur (Telangana) in October 2026 with an investment of ₹75 Cr and 4.0 million bulk litres annual capacity to service captive requirements of Prestige & Above brands.
- Commenced commercial operations at Moradabad (UP) bottling plant with 6 million cases per annum capacity, delivering ₹27 per case savings on franchise fees.
- Announced ₹495.5 Cr expansion in Uttar Pradesh comprising a 66 million bulk litre dual-mode distillery (₹293.5 Cr) and bottling expansion to 13 million cases per year (₹202 Cr).
- Secured Environment Clearance for Minakshi Agro (Aurangabad, Maharashtra) ENA distillery expansion with commissioning targeted for H1FY28; bottling unit expected operational in Q3FY27.
- Formed asset-light overseas local co-bottling tie-up in Malaysia for Officer's Choice Blue.
- Launched 'The Indian Edit' premium whisky across 7 states in September 2026; planned entry into deluxe vodka segment before end of FY27.
Analyst Q&A
Q. What is the volume outlook for ICONiQ White given sequential volume was relatively flat between Q1 (3.1M cases) and Q2 (3.2M cases)?
Management attributed sequential flattening to quarterly aberration, noting monthly run-rate exceeds 1M cases and reiterating full-year target of close to 14M cases (>25% growth) driven by H2 seasonality.
Q. Why did Prestige & Above (P&A) volume growth slow to 6% YoY while Mass Premium grew 15.5% YoY?
Management clarified that Mass Premium volume surged due to Andhra Pradesh brandy rollout reaching near double-digit market share and Officer's Choice turnaround, while P&A value grew 13.4% and is set to accelerate in H2.
Q. How will ABD Maestro luxury portfolio scale, and when will it meaningfully contribute to EBITDA margins?
Management stated ABD Maestro sales will double from ₹40 Cr in FY26 to ~₹80 Cr in FY27, with retail sales integration into ABD's distribution network driving expansion across ~20,000 premium on-premise accounts.
Q. How will the company manage balance sheet leverage given Net Debt to EBITDA rose to 2.2x versus the 2.0x threshold?
Management explained the leverage spike was due to capex milestone payments of ₹351 Cr in H1FY27 and confirmed strong operating cash flows (₹269 Cr in H1) will bring leverage metrics back below 2.0x Net Debt/EBITDA and 0.75x Net Debt/Equity by year-end.
Research and educational content only. Not investment advice.