Globus Spirits reported a strong Q3 FY26 driven by robust P&A volume growth (37% ex-Delhi) and favorable raw material prices, leading to improved gross margins. The company achieved 86% capacity utilization and is confident in Delhi's market normalization and 50% P&A volume growth in Q4 FY26. While R&O growth was flat, strategic investments in UP capacity and brand building are expected to drive future growth and margin expansion.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| ENA Consumed | 15 million liters | — |
| ENA & Ethanol Sold | 52.25 million liters | — |
| Capacity Utilization | 86% | — |
| Bulk Sales Margin (Q3) | 7.5 Rs/liter | — |
| Bulk Sales EBITDA Margin (Q3) | 7.5 Rs/liter | — |
| Bulk Sales EBITDA Margin (9M) | 5.76 Rs/liter | — |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Manufacturing EBITDA Margin | 3% | |
| Manufacturing Margin per liter(Rs) | 3 |
| Category | Headline | |
|---|---|---|
Capex | Capex disclosed | |
Debt | Net ₹570 crores | |
M&A | Regional brands for distribution salience acquisition · announced |
| Category | Target | Priority |
|---|---|---|
| Capacity | Capacity Utilization→80% to 85% | High |
| Capacity | UP Grain ENA Production Capacity Addition→100,000 liters per day | High |
| Margin | Bulk Sales Margin→INR 6 to INR 7 per liter | High |
| Volume | P&A Consumer Business Volume Growth→50% | High |
| Volume | Overall P&A Growth→about 50% | High |
| Volume | Overall R&O Growth→mid-single digits | High |
| Volume | UP Additional ENA Production→15-20 million liters | High |
| Profitability | P&A EBITDA Margin→15% to 17% | High |
| Market Share | UP Market Share→5% | High |
| Debt | Net Debt to EBITDA→2 or less | High |
| # | Metric | |
|---|---|---|
| 01 | UP Distillery Commissioning & Margin Impact | |
| 02 | Delhi Market Normalization | |
| 03 | West Bengal Bottling Shift Completion | |
| 04 | QIP Fundraise Decision and Utilization | |
| 05 | Raw Material Price Trends |
| Severity | Risk |
|---|---|
medium | Delhi Excise Policy Uncertainty The excise policy for '24-'25 ended in September '25, and a new policy is awaited, which had impacted Q2 volumes but is now normalizing. Management |
low | West Bengal Bottling Location Shift The company is shifting its bottling location in West Bengal due to high labor costs in the previous setup, which is currently underway. Management |
low | UP Distillery Licensing Delays There were some delays with the licensing for the UP distillery, but the license was received in early January, and commissioning is starting. Management |
medium | Raw Material Price Firming After a correction in Q3, raw material prices (specifically maize) are expected to start firming up again in February and March. Management |
low | OMC Ethanol Offtake Reduction There is market buzz about OMCs reducing ethanol offtake, but management states they are not impacted and have contracts in place for their capacity utilization guidance. Analyst |
Globus Spirits reported a robust Q3 FY26 with approximately 15 million liters of ENA consumed and 52.25 million liters of ENA and ethanol sold, achieving an 86% capacity utilization. The bulk sales business generated a margin of INR 7.5 per liter, consistent with the annual guidance of INR 6-7 per liter. The Prestige & Above (P&A) consumer business, excluding Delhi, demonstrated strong growth with a 37% year-on-year volume increase and 32% year-on-year revenue growth. Overall R&O segment volumes were flat year-on-year, with a 1% revenue growth.
The company's manufacturing business continues to provide stable supply and innovation. It expects to capitalize approximately INR 200 crores worth of UP assets in Q4, adding 100,000 liters per day of grain ENA production capacity. This expansion is projected to further improve margins for the R&O and P&A portfolios in Uttar Pradesh. The current Work-in-Progress (CWIP) stands at INR 184 crores, with expectations for additional capex.
The P&A segment showed significant momentum, with a 37% volume growth and 32% revenue growth (ex-Delhi) in Q3 FY26. Management is confident of achieving 50% volume growth in the P&A segment in Q4 FY26. The R&O business, while seeing 2% volume growth and 3% revenue growth in Rajasthan, experienced flat overall volume growth and 1% revenue growth year-on-year. The company aims for mid-single-digit growth in the R&O segment for Q4 FY26.
Issues in the Delhi market, which impacted Q2, have been resolved, and volumes are normalizing, with full normalization expected by the end of Q4. The company plans to enter Jharkhand by the end of Q4. In Uttar Pradesh, the R&O segment reached 1 lakh cases in December, and margins are expected to improve significantly once the new distillery stabilizes. The West Bengal bottling location is being shifted due to high labor costs, with operations expected to start by the end of Q4.
Gross margins expanded due to a 4% quarter-on-quarter and 15% year-on-year reduction in raw material prices, a structural improvement driven by changes in the raw material scenario. Management expects raw material prices to firm up in February and March but maintains its guidance of INR 6-7 per liter for bulk sales margins for the full year. Overall gross margins are expected to rise as the P&A and R&O businesses continue to grow.
The company's net debt stands at INR 570 crores, with a target to maintain net debt to EBITDA at 2 or less in the coming years. The Board has passed an enabling resolution for a fundraise of up to INR 500 crores. This fundraise is intended to finance the growing consumer business, including working capital and increasing malt whiskey inventory for brands like DOAAB, and is not dependent on the FY29 vision but rather an enabler for faster growth and strategic opportunities.
Globus Spirits emphasizes its internal capability to innovate and create products, citing examples like DOAAB Expression 02 (matured in Japanese Mizunara Oak) and TERAI vodka (filtered with amethyst crystals). While focusing on internal innovation, the company is also open to inorganic acquisitions of regional brands that offer distribution salience in geographies where it currently lacks presence. This dual strategy aims to strengthen its market position and brand portfolio.