Piccadily Agro — Q4 FY26 earnings call

Call held 29 Apr 2026

Management summary

Piccadily Agro reported a strong FY26, with sales crossing INR1,000 crores and the Alco-Bev business growing 42% YoY. Profitability also saw significant gains, with standalone PBT up 33%. The company provided an optimistic outlook for FY27, projecting 60-70% value growth, driven by recent capacity expansions and new product launches, despite a rise in short-term borrowings and temporary input cost pressures.

Highlights

  • FY26 sales revenue surpassed INR1,000 crores, marking a significant milestone.

  • Alco-Bev business demonstrated robust growth of 42% YoY, reaching INR908 crores in FY26.

  • Standalone PBT increased by 33% YoY to INR190 crores in FY26, driven by premiumization.

  • Q4 Alco-Bev brand portfolio revenue surged 67% YoY to INR250 crores.

  • Management provided a strong outlook for FY27, guiding for 60-70% overall value growth.

Concerns

  • Q4 standalone EBITDA margin saw a slight drop of 300 bps due to seasonality in the sugar business and a mix shift.

  • Short-term borrowings increased by 132% in FY26, primarily due to working capital requirements for increased sales and a INR100 crores increase in malt inventory.

  • Power and fuel costs jumped in Q4 FY26 due to commodity prices, though management expects normalization in FY27.

Key financials

2 periods

Q4 FY26

  • Alco-Bev Brand Portfolio Revenue
    ₹250 Cr
    YoY +67%

FY26

  • Standalone Revenue
    ₹1,143 Cr
    YoY +28%
  • Standalone PBT
    ₹190 Cr
    YoY +33%
  • Standalone PAT
    ₹140 Cr
    YoY +33%
  • Alco-Bev Business Revenue
    ₹908 Cr
    YoY +42%
  • Alco-Bev Business Profitability
    ₹209 Cr
    YoY +37%

What they filed

Q1 FY27: revenue up 17.3%, net profit up 16.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue185 182 255 214 212 +15%276 +52%335 +31%251 +17%
EBITDA42 48 66 38 46 +10%78 +63%71 +8%44 +16%
Net profit25 25 40 18 27 +8%48 +92%45 +13%21 +17%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹25 Cr
    • Greenfield distillery in Mahasamund, Chhattisgarh (200 KLPD capacity) Commissioned ETA December 2025
    • Indri distillery expansion (ENA/ethanol from 78 to 220 KLPD, malt from 12 to 30 KLPD) Completed ETA October 2025
    • Added barrels for maturation at Indri distillery Completed ETA October 2025
    • Increase barrel count from 85,000 to 100,000 Planned ETA this year
    • Warehouse extension Planned
    • Bottling expansion Planned

    Timeline: Chhattisgarh distillery commissioned in December 2025. Indri distillery expansion completed in October 2025. Scotland facility construction over next couple of years.

    Our greenfield distillery in Mahasamund, Chhattisgarh, with a 200 KLPD capacity was commissioned in December 2025. Our total distillery capacity now stands at a robust 450 KLPD, comprising of 30 KLPD of malt and 420 KLPD of ENA and ethanol. I now hand it over to our CFO, Mr. Natwar Aggarwal, to walk you through our record-breaking financial performance. (Page 4) To meet surging demand, we significantly expanded operations. The Indri distillery expansion was completed in October 2025, scaling ENA and ethanol capacity from 78 KLPD to 220 KLPD and malt capacity from 12 to 30 KLPD, as well as added barrels for maturation at the Indri distillery. (Page 3) No, so we don't. So most of the project plans has been done. Now the capex would mainly either to have some more barrels. We have around 85,000 barrels currently. We plan to go about 100,000 barrels this year. There could be some warehouse extension to store that barrels. And yes some maybe bottling expansion, but nothing major of nature of either Chhattisgarh or Indri expansion with it. (Page 10) Should not be more than INR25 to INR30 crores. (Page 10)
  • Debt Debt disclosed
    Thanks for this question. The short-term borrowings are mainly towards the working capital. As we can clearly see we have grown our sales, so there are debtors added to the balance sheet. And we have increased our malt also, malt inventory also about INR100 crores. So that's also added to the working capital. (Page 12) So both factors put together has been deployed through short-term borrowings. But as we go in FY '27, as we grow by 60%, 70%, we try to bring down this borrowings to the FY '26 levels by monetizing the investment both in malt and, you know, increasing the sales. (Page 12)
  • M&A Sugar business Divestment · Announced

    To focus on core Alco-Bev business and become a global alco-bev company.

    Scheme of demerger filed with SEBI, process expected to complete by FY27.

    A couple of announcements also, we want to be a global alco-bev company and in that pursuit we want to focus on our core brand portfolio. And we've been discussing this and with management approval and Board approval yesterday, now we have filed our scheme of demerger of our sugar business, into a new entity. So the entire scheme has been filed with SEBI (Page 4) Yes, intent is very clear that we want to be a global Alco-Bev company. We want to pool our human and capital resources just for the Alco-Bev business. So sugar business is like a traditional heritage business for us. So we want to separate it and list it as a separate entity than our Alco-Bev company and focus only on the Alco-Bev portfolio. (Page 11)
  • M&A Undisclosed Acquisition · Exploring

    To add strategic depth to portfolio, either in India or internationally, mainly on the brand side.

    Yes. So one inorganic could be domestic or international. We are exploring opportunities either in India or outside. And we are exploring all kind of opportunities which could be strategically fit into our portfolio offerings. So there is nothing in particular we have it in mind, but anything which could add strategic depth to our portfolio either in India or international will fit into our scheme of things. And lot of discussions are happening, so depend how we take that. (Page 9) No, it will be mainly on the brand side. (Page 11)

Guidance & targets

Overall Growth

  • Overall Value Growth Overall Growth · FY27 · High confidence 60-70%
    Owing to the above factor, we expect coming financial year FY '27 as an exceptional year for us. It's going to be exceptional year where the company is looking to grow at 60% to 70%. (Page 5)

    — Natwar Aggarwal

Revenue

  • Chhattisgarh Plant Revenue Revenue · FY27 · High confidence INR300-400 crores
    Talking about our greenfield project, Chhattisgarh, we expect Chhattisgarh plant to start getting monetized this year with a capacity of 200 KLPD and generate revenue of about INR300 crores to INR400 crores in FY '27. (Page 5)

    — Natwar Aggarwal

  • Indri Plant Additional Revenue (from recent capacity) Revenue · FY27 · High confidence INR250-300 crores
    plant to generate additional revenue of INR250 crores to 300 crores in FY '27 of the capacities which have been come up recently. (Page 5)

    — Natwar Aggarwal

Export Business

  • Share of Total Business Export Business · next 3 to 5 years · Medium confidence 50%
    So our vision and road map is to achieve around 50% export business in next 3 to 5 years and to be a top five single malt brand in the world. (Page 6)

    — Management

Alco-Bev Business Growth

  • Revenue Growth Alco-Bev Business Growth · next 3 to 4 years · Medium confidence 3x to 4x
    In next 3 to 4 years, we expect revenue to grow by 3x to 4x of the current revenue. (Page 5)

    — Natwar Aggarwal

EBITDA Margin

  • EBITDA Margin EBITDA Margin · this year (FY27) · Medium confidence same or 50 bps higher
    If I do that math, our EBITDA margins will be either the same or maybe 50 bps higher. (Page 8)

    — Management

Capex

  • Total Capex Capex · FY27 · High confidence not more than INR25-30 crores
    Should not be more than INR25 to INR30 crores. (Page 10)

    — Management

Short-term Borrowings

  • Borrowings Level Short-term Borrowings · FY27 · Medium confidence FY26 levels
    But as we go in FY '27, as we grow by 60%, 70%, we try to bring down this borrowings to the FY '26 levels by monetizing the investment both in malt and, you know, increasing the sales. (Page 12)

    — Natwar Aggarwal

Power and Fuel Costs

  • Cost Normalization Power and Fuel Costs · next year (FY27) · High confidence FY25 levels
    It will stabilize as we see, you know, in the next year. (Page 13)

    — Natwar Aggarwal

Market context

  • Single Malt Brand Ranking Global Brand Ranking · 1-2 years · Medium confidence Top 10
    So currently with Indri we are a top 15 brand in the world in single malts. In a year or two, we'll be in top 10 and next 3 to 5 years, we aspire to be top 5 global brand. (Page 5)

    — Natwar Aggarwal

  • Single Malt Brand Ranking Global Brand Ranking · 3-5 years · Medium confidence Top 5
    So currently with Indri we are a top 15 brand in the world in single malts. In a year or two, we'll be in top 10 and next 3 to 5 years, we aspire to be top 5 global brand. (Page 5)

    — Natwar Aggarwal

What to watch in Q1 FY27

Overall Value Growth

next quarter (Q1 FY27)
Current FY26: 28% (standalone)
Target 60-70% for FY27

Why it matters

To assess if the company is on track to achieve its ambitious FY27 growth guidance.

Owing to the above factor, we expect coming financial year FY '27 as an exceptional year for us. It's going to be exceptional year where the company is looking to grow at 60% to 70%. (Page 5)

Risks & concerns

  • Input Cost Inflation (Glass, Packaging)

    medium

    Analyst raised concerns about 40-50% price hikes in glass and packaging materials due to the Iran war. Management stated they have medium-to-short-term arrangements, mitigating immediate impact, but will monitor the situation and may renegotiate or pass on costs if prolonged.

    Analyst acknowledged

  • Increased Competition

    low

    Management acknowledged increased competition in the segment but welcomed it as it helps the category grow.

    Management acknowledged

  • Supply Constraints for Indri

    low

    Indri faced supply constraints in early FY26, which are now resolved due to capacity expansions.

    Management resolved

  • Power and Fuel Costs Volatility

    low

    Power and fuel costs jumped in Q4 FY26 due to commodity prices (husk, nakku), but management expects this to be a temporary, seasonal phenomenon that will normalize in FY27.

    Management expected to normalize

Q&A highlights

7 direct
IMFL Segment Volume Growth and Distribution Breakup Partial
I think, these kind of a breakup we don't come up in the forums. That's a matter of internal dimension. But what we can tell you is overall we envisage and we are confident to achieving 60% to 70% growth into the entire Alco-Bev business. (Page 5)

Analyst sought specific volume growth figures for key IMFL brands and detailed distribution channel mix, which management declined to provide, citing internal policy, but gave overall distribution figures.

Asked by Ruchika Bhatia

Indri Growth Rate and Market Fatigue Direct
Well there is increase in competition and we welcome that, that helps the category grow, but that is not the reason. We were also constrained with supplies, as you know we've expanded our capacities. And we foresee the demand for Indri being far more than we could supply at earlier stages. But yes, this year onwards those constraints are kind of going away and we should be able to grow at a much stronger pace. (Page 9)

Analyst questioned the lower-than-expected 16% growth for Indri, suggesting market fatigue. Management clarified it was due to supply constraints, now resolved, and expects stronger growth.

Asked by Harsh Shah

Q4 Gross Margins and Mix Shift Direct
So I was explaining the overall then one is the sugar. And the second is from a brand business perspective, we you always see a change in terms of how much, in change of product portfolio quarter sometime in the quarter-to-quarter. So this time we see a little bit more of a distillery sale than the maybe little bit IMFL. So that is one of the reason of little bit lesser EBITDA margins this quarter. (Page 8)

Analyst probed the Q-on-Q decline in gross margins. Management attributed it to sugar business seasonality and a temporary mix shift towards distillery sales, emphasizing that annualized EBITDA margins remained stable.

Asked by Hiren Haresh

Auditor Change Clarification Direct
Yes. So our current partner who is signing the balance sheet Mr. Krishnan Mangwa has come out of Jain Associate which was his earlier firm to the new firm Rattan Kaur. So he has changed he has changed realignment between with the old partners and he's come up with the new firm with the new partners which is Rattan Kaur. (Page 8)

Analyst sought clarity on the change in statutory auditor. Management explained it was a partner realignment, with the same signing partner moving to a new firm, ensuring continuity.

Asked by Hiren Haresh

IMFL EBITDA Margin Direct
I can give you a flavor that our IMFL EBITDA margins are quite high as we deal into premium products. So our EBITDA margins are much higher than the industry, so around 45% to 50%. (Page 9)

Analyst asked for the specific EBITDA margin for the IMFL business, which management disclosed as a high 45-50%, indicating strong profitability in their premium segment.

Asked by Himanshu Shah

Drivers for FY27 IMFL Revenue Growth Direct
So there are few things will happen. One we were constrained by the supplies and capacities. So we will be able to use now we have done that expansion both in Indri and Chhattisgarh. So that will drive a growth using the capacity. Also there will be lot of new products pipeline. So that pipeline will start kicking in from maybe Q1. (Page 10)

Analyst questioned the drivers for the projected INR300-350 crores additional IMFL revenue in FY27. Management cited resolved supply constraints from expanded capacities and new product launches starting in Q1.

Asked by Himanshu Shah

Short-term Borrowings Increase and Normalization Direct
The short-term borrowings are mainly towards the working capital. As we can clearly see we have grown our sales, so there are debtors added to the balance sheet. And we have increased our malt also, malt inventory also about INR100 crores. So that's also added to the working capital. (Page 12)

Analyst inquired about the 132% jump in short-term borrowings. Management explained it was due to working capital needs for increased sales and higher malt inventory, with plans to reduce it in FY27.

Asked by Himani Shah

Inorganic Acquisition Strategy Direct
Well, we're not completely dependent on that. We do not want to, you know, look at acquisitions just for the sake of it. The idea is to identify high potential categories and brands and you know, and we will very seriously consider them depending upon what comes our way. (Page 14)

Analyst asked about the inorganic acquisition strategy. Management clarified they are exploring brand-side opportunities to add strategic depth but are not solely dependent on M&A for growth.

Asked by Himanshu Shah

2 min read 6 chapters

Detailed narrative

Strong FY26 Performance Driven by Alco-Bev Business

Piccadily Agro achieved a significant milestone in FY26, with sales revenue crossing INR1,000 crores. The Alco-Bev business was a primary growth driver, expanding 42% year-on-year to INR908 crores. Standalone PBT grew 33% to INR190 crores, and PAT also increased by 33% to INR140 crores, reflecting strong overall financial health. The Q4 performance was particularly robust, with the Alco-Bev brand portfolio growing 67% YoY to INR250 crores and Q4 PBT up 79% to INR63 crores.

Ambitious Growth Outlook and Capacity Expansion for FY27

The company projects an exceptional FY27, targeting 60-70% overall value growth. This growth is expected to be fueled by recently commissioned capacities, including a greenfield distillery in Chhattisgarh (200 KLPD) projected to generate INR300-400 crores in FY27, and expanded capacities at the Indri distillery, contributing an additional INR250-300 crores. Management anticipates the new product pipeline to start kicking in from Q1 FY27, further supporting this growth trajectory.

Strategic Focus on Premium IMFL and Global Expansion

Piccadily Agro is strategically focusing on its premium IMFL portfolio, with brands like Indri, Camikara, Cashmir, and Whistler driving growth. The company aims to become a global Alco-Bev player, targeting 50% of its business from exports within 3-5 years and aspiring for its Indri single malt to be a top 10 global brand in 1-2 years, and top 5 in 3-5 years. The IMFL business currently boasts high EBITDA margins of 45-50%, significantly above the industry average.

Demerger of Sugar Business to Streamline Operations

In a move to sharpen its focus on the core Alco-Bev business, the company has filed a scheme of demerger for its sugar business into a new entity. This strategic decision, approved by the Board, aims to pool human and capital resources solely for the Alco-Bev segment, with the process expected to be completed by FY27. This will allow the company to concentrate on its growth aspirations in the premium alcohol market.

Working Capital and Input Cost Management

Short-term borrowings increased by 132% in FY26, primarily due to higher working capital requirements driven by increased sales and a INR100 crores increase in malt inventory. Management plans to reduce these borrowings to FY26 levels in FY27 by monetizing investments and increasing sales. While power and fuel costs saw a temporary jump in Q4 FY26 due to commodity prices, they are expected to normalize to FY25 levels in the next year, mitigating margin pressures.

Inorganic Growth and Auditor Realignment

The company is actively exploring inorganic acquisition opportunities, both domestically and internationally, with a focus on brand-side additions to strategically deepen its portfolio. However, management emphasized that they are not solely dependent on M&A. Additionally, a change in statutory auditor was announced, which is a realignment where the existing signing partner moved to a new firm, ensuring continuity and understanding of the business.

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