Globus Spirits Limited

The manufacturing segment demonstrated strong performance in Q3 FY26, achieving 86% capacity utilization, which exceeded the company's guidance of 80-85%. This segment contributed an EBITDA margin of INR7.5 per liter in Q3 and INR5.76 per liter for the nine-month period. Looking ahead, Globus Spirits plans to capitalize UP assets worth approximately INR200 crores in Q4 FY26, which will add 100,000 liters per day of grain ENA production. The license for the UP distillery was received in early January, and commissioning is underway, expected to significantly improve margins for both R&O and P&A portfolios in Uttar Pradesh.

The Prestige & Above (P&A) segment, excluding Delhi, reported robust volume growth of 37% year-on-year and revenue growth of 32% year-on-year in Q3 FY26, maintaining margins around 40%. The company is confident in achieving 50% volume growth in the P&A segment in Q4 FY26. The Regular & Ordinary (R&O) segment, however, experienced flat volume growth and 1% revenue growth year-on-year overall in Q3 FY26. Despite this, Rajasthan showed 2% volume and 3% revenue growth, and Uttar Pradesh R&O sales reached 1 lakh cases in December, indicating accelerated growth in key regions.

The Delhi market, which faced issues in Q2 FY26, has seen resolutions in Q3, with volumes beginning to normalize^📎. Management expects the market to return to a normal stream by the end of Q4 FY26, contributing to the overall P&A volume growth target. However, the excise policy for 2024-25 concluded in September 2025, and the new policy is still awaited, creating a period of uncertainty and impacting sales. The company's overall stability is improving as it grows in more geographies, reducing the impact of single-state disruptions.

Globus Spirits benefited from favorable raw material price trends in Q3 FY26, with a significant reduction of 15% year-on-year and 4% quarter-on-quarter. This reduction, which began in mid-November, is considered a structural improvement in the raw material scenario. While prices are anticipated to firm up in February and March, the company's overall financial year margins are guided to be around INR7 per liter, reflecting a stable outlook despite potential short-term fluctuations.

The Board has approved an enabling resolution for a fundraise of up to INR500 crores, with a one-year timeframe for evaluation. The primary purpose of these funds is to support the growth of the consumer business, specifically for working capital and increasing malt whiskey inventory for maturation. Management clarified that while INR500 crores is the upper limit, their current requirements are lower, and the fundraise is not a 'dire need' but rather a strategic move to enable faster growth and pursue market opportunities. The company's net debt stands at INR570 crores, with a target net debt-to-EBITDA ratio of 2 or less.

Globus Spirits is committed to its vision of becoming an innovative and brand-led company, leveraging its robust manufacturing backbone. The company highlights its internal innovation capabilities, citing examples like DOAAB Expression 02, a single malt whiskey matured in Japanese Mizunara Oak, and TERAI vodka, filtered with amethyst crystals. For inorganic growth, the company is open to acquiring regional brands that offer distribution salience in new geographies. The long-term vision includes achieving 5 million cases in Uttar Pradesh by FY29, representing a 5% market share, and targeting 15-17% EBITDA margins for the P&A segment by FY29.