Allied Blenders

Allied Blenders reported a consolidated income from operations of ₹1,004 crore in Q3 FY26, marking a 2.8% increase year-on-year. EBITDA for the quarter grew 14.1% to ₹137 crore, with the EBITDA margin improving to 13.6%. PAT for Q3 FY26 increased by 10.9% to ₹64 crore. For the nine-month period, consolidated income reached ₹2,929 crore (up 12.4% YoY), EBITDA was ₹386 crore (up 28.1% YoY), and PAT surged 57% to ₹182 crore, reflecting strong fundamentals and margin improvement.

The company's premiumization strategy continues to yield results, with the P&A segment's volume growing 16.9% year-on-year in Q3 FY26. This growth significantly increased the P&A segment's salience to 48.5% in Q3 FY26, up from 42% in Q3 FY25. ICONIQ White remains a key growth driver, having delivered 7.7 million cases in 9M FY26, and is projected to reach 10 million cases for the full FY26, currently running at a 12 million case Annual Run Rate (ARR).

Allied Blenders is executing a disciplined capex strategy, with a total announced investment of ₹700 crore. This includes ₹110 crore for an automated bottling facility in Uttar Pradesh, expected to be operational by Q3 FY27, and ₹54 crore for expanding bottling capacity at its Minakshi facility in Maharashtra, slated for Q4 FY27. These initiatives, along with existing projects, are anticipated to enhance gross margins by 300 basis points and contribute to an 18% EBITDA margin by FY28.

The mass premium whisky segment experienced softness in Q3 FY26, with a 7.4% degrowth, primarily due to temporary moderation in trade inventory levels in Telangana following retail license auctions and policy-driven price changes in Maharashtra affecting consumer behavior. Management expects normalization in Telangana by Q4 FY26 and has factored a stable, albeit lower, market size for Maharashtra into its Q4 guidance, targeting overall double-digit growth.

The company's international expansion strategy is delivering strong results, with its footprint growing from 14 to 31 countries in 21 months, targeting 35 countries by Q4 FY26. Allied Blenders also secured approval for four brands (Jolly Roger rum, Sterling Reserve B7, Kyron, and ICONIQ) within the CSD market, which is a strategically important and profitable sales channel, opening new growth avenues for these brands.

ABD Maestro continues to build a differentiated brand portfolio, launching three new brands: Rangeela Vodka, YELLO Designer Whisky, and AODH (Irish Whiskey). The company is also planning to launch a P&A vodka brand in Q1 FY27 and is actively pursuing entry into the mass premium brandy segment in Andhra Pradesh, aiming to capture a share of the 12 million case market where it previously had no presence.

Allied Blenders demonstrated strong operating cash flow generation, reporting ₹173 crore in Q3 FY26. This robust cash flow contributed to a significant reduction in net debt, which stood at ₹785 crore as of December 31, 2025, down from ₹893 crore on September 30, 2025. This reduction occurred despite ongoing investments in capex and the luxury portfolio, showcasing prudent financial management.

The company is strengthening its distribution capabilities by leveraging technology and data. For off-premise sales, it uses a tech platform to monitor incentives and communicate directly with counter salesmen, achieving a distribution width of 93%. For the ABDM portfolio, the focus is on key accounts and travel retail, supported by a digitized training program for the sales team to enhance brand knowledge and consumer engagement.