Globus Spirits Limited — Q3 FY26 earnings call

Call held 13 Jan 2026

Management summary

Globus Spirits delivered a strong Q3 FY26, marked by robust manufacturing performance and significant growth in its Prestige & Above consumer segment. The company exceeded its capacity utilization targets and benefited from favorable raw material price trends, leading to healthy margin expansion. While facing temporary disruptions in Delhi and West Bengal, management expressed confidence in market normalization and continued brand-led growth, supported by strategic capacity expansions and a planned fundraise for future investments.

Highlights

  • Manufacturing capacity utilization reached 86% in Q3 FY26, marginally exceeding the guidance of 80-85%.

  • The manufacturing segment generated an EBITDA margin of INR7.5 per liter in Q3 FY26.

  • Prestige & Above (P&A) segment volume growth was 37% year-on-year (excluding Delhi) and revenue growth was 32% year-on-year in Q3 FY26.

  • Uttar Pradesh R&O sales showed accelerated growth, reaching the 1 lakh case mark in December.

  • Raw material prices experienced a significant reduction of 15% year-on-year and 4% quarter-on-quarter in Q3 FY26.

Concerns

  • The Delhi excise policy for '24-'25 ended in September '25, with a new policy still awaited, causing disruption in sales.

  • The shift in bottling location in West Bengal due to high labor costs is underway, leading to short-term impact on operations.

  • Overall Regular & Ordinary (R&O) segment reported flat volume growth and only 1% revenue growth year-on-year in Q3 FY26.

What they filed

Q1 FY27: revenue up 12.7%, net profit up 44.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue638 602 655 700 661 +4%717 +19%632 −4%789 +13%
EBITDA30 34 39 57 59 +97%75 +121%67 +72%78 +37%
Net profit1 0 5 18 22 +2100%30 21 +320%26 +44%
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.

Segment breakdown

  • Manufacturing/Bulk Sales
    15 million liters ENA Consumed52.25 million liters ENA & Ethanol Sold86% Capacity Utilization₹7.5 Margin per liter (Q3)₹7.5 EBITDA Margin per liter (Q3)₹5.76 EBITDA Margin per liter (9M)
  • Consumer (Prestige & Above)
    37% Volume Growth (ex-Delhi)32% Revenue Growth (ex-Delhi)40% Margins
  • Consumer (Regular & Ordinary)
    2% Rajasthan Volume Growth3% Rajasthan Revenue Growth0% Overall Volume Growth1% Overall Revenue Growth
  • Input Costs
    15% Raw Material Price Reduction4% Raw Material Price Reduction₹2,150 Maize Spot Price (Dec 2025)

Capital allocation

high confidence
  • Capex ₹200 Cr
    • Capitalization of UP assets for grain ENA production ₹200 Cr
    We're expecting capitalization of our UP assets worth around INR200 crores in Q4, which will add a capacity of 100,000 liters per day of grain ENA production.
  • Debt Net ₹570 Cr · 2.0× EBITDA
    Nilanjan Sarkar: INR570 crores. ... Nilanjan Sarkar: Two or less. It's a working capital business. So next few years, while our long-term debt will come down, but our working capital will increase with increase in IMFL business. So anything in the level of two or less is an ideal position on a debt-to-EBITDA.
  • M&A Regional brands with distribution salience Acquisition · Announced

    Expand presence in geographies where Globus is not present and leverage internal innovation for new products.

    Shekhar Swarup: On the other hand, coming to acquisitions, there may be opportunities to acquire regional brands that have distribution salience in certain geographies that we are not present in. So those are the kind of opportunities we would be interested in looking at.

Guidance & targets

Profitability

  • Manufacturing EBITDA Margin Profitability · for the year · High confidence INR6 to INR7 per liter
    This is in line with our guidance of INR to INR7 per liter for the year.

    — Shekhar Swarup

  • Manufacturing EBITDA Margin Profitability · for the financial year · High confidence around INR7 a liter

    Previously INR6 to INR7 → around INR7 a liter

    Overall, for the financial year, the margins will be around INR6 to INR7. In fact, it should be around INR7 a liter. Strategically, INR to INR7 is our guidance, and that is what we will continue to maintain.

    — Shekhar Swarup

  • P&A EBITDA Margin Profitability · FY29 · High confidence 15% to 17%
    No, not at the moment. We've given a 15% to 17% EBITDA margin guidance in FY '29 for P&A.

    — Shekhar Swarup

Capacity

  • Capacity Utilization Capacity · going forward · High confidence 80% to 85%
    Nitin, we are expecting capacity utilization at 80% to 85% going forward. Given the capacity base that our current capacity base and the incremental growth after UP, that's what we're going to be able to achieve, and that's been our guidance since last quarter.

    — Shekhar Swarup

  • UP New Capacity Utilization Capacity · High confidence 90%
    Yes, yes. So this 20 million is at about 90% capacity utilization. So 15 million to 20 million, yes.

    — Shekhar Swarup

Volume

  • P&A Segment Volume Growth Volume · Q4 FY26 · High confidence 50%
    We are confident of 50% volume growth in the P&A segment in Q4 FY26, bringing us back on track.

    — Paramjit Singh Gill

  • Overall R&O Growth Volume · Q4 · High confidence mid-single digits
    And we expect our overall R&O growth to remain in mid-single digits in Q4.

    — Paramjit Singh Gill

  • Consumer Business Volume Growth Volume · FY27 · High confidence mid-single-digit
    So we have not given any guidance for '27 and '28. We've given a guidance for '29 for our P&A business. We've given an R&O volume guidance and revenue guidance of mid-single digits year-on-year.

    — Paramjit Singh Gill

Market Share

  • UP R&O Market Share Market Share · FY29 · High confidence 5%
    So we have in our FY'29 projection anchored UP at 5 million cases, which pegs us even if the market does not grow and holds its volume, it pegs us 5% share.

    — Paramjit Singh Gill

What to watch in Q4 FY26

UP Distillery Commissioning

Very soon / Next quarter
Current License received, commissioning process started
Target Commercial operations commenced

Why it matters

Expected to significantly improve margins in UP for R&O and P&A segments.

We've received our license early January. And now we've started the process of commissioning, and we hope to announce commissioning very soon. So there will be significant margin expansion now as soon as the distillery starts supplies.

Risks & concerns

  • Delhi Excise Policy Uncertainty

    medium

    The '24-'25 excise policy ended in September '25, and a new policy is still awaited, causing disruption in sales for the Delhi market.

    Management acknowledged

  • West Bengal Bottling Location Shift

    low

    The company is shifting its bottling location in West Bengal due to high labor costs, which is currently underway and causing short-term impact.

    Management acknowledged

  • OMC Ethanol Offtake Reduction

    low

    There is buzz about Oil Marketing Companies (OMCs) reducing ethanol offtake, but management states they are not impacted due to existing contracts and expect to maintain 80-85% capacity utilization.

    Analyst downplayed

Q&A highlights

6 direct, 1 evasive
Gross Margin Expansion and Q4 Outlook Direct
The expansion in gross margins are for two reasons. One is a lower cost of raw material in Q3, which is in line with what we had expected, given the structural change in the raw material scenario in the country that transpired even in Q3. So that story is really playing out it continues to play out and will remain this way. The other reason is as our P&A business grows, in fact, even as our R&O business continues to grow, overall gross margins will rise.

Management clarified the drivers of margin expansion (raw material costs and business mix) and indicated these are structural, not one-offs, providing confidence in future profitability.

Asked by Avinash Roy

UP Distillery Commissioning and Margin Impact Direct
So I just wanted to comment here on the margin in UP. There's going to be an expansion in UP margins as soon as the distillery starts. We were expecting to start last month, Avinash, but there were some delays with the licensing. We've received our license early January. And now we've started the process of commissioning, and we hope to announce commissioning very soon. So there will be significant margin expansion now as soon as the distillery starts supplies.

Provided an update on the delayed UP distillery, confirming licensing and imminent commissioning, which is crucial for improving margins in the UP market.

Asked by Avinash Roy

Necessity and Utilization of Fundraise Partial
No. Like I said, there is no dire need firstly. Secondly, this is an enabling resolution and INR500 crores is the limit. The requirements that we are foreseeing are lower than that. So let's see how things shape up as the year progresses, and we'll keep you informed.

Addressed analyst concern about potential dilution from a large fundraise, clarifying it's an enabling resolution with lower actual requirements and not a dire need, intended for strategic growth investments.

Asked by Aashish Upganlawar

P&A Segment Breakeven Timeline Direct
Yes, yes. See, the way if you will recall, since the inception of our journey we have been saying is that each individual market in its third full year will start accruing and will become profitable and new markets will continue to add and they will obviously need investments. And as we keep pursuing aggressive growth, these investments will continue to feed into it.

Management provided context on the P&A segment's path to profitability, indicating that individual markets become profitable in their third year and the segment is close to breakeven, with aggression driving the timeline.

Asked by Nishant Bhatt

OMC Ethanol Offtake Concerns Evasive
We are confident of 80% to 85% capacity utilization between ENA and ethanol. So within this, we do not see any significant threat. Yes, I have also been hearing that OMCs are reducing volume offtake. But so far, we are not impacted and our contracts are in place for the capacity utilization guidance that I have provided you.

Addressed a potential sector-wide risk, reassuring that despite market buzz, Globus Spirits is not currently impacted due to existing contracts and expects to maintain high capacity utilization.

Asked by Dhaval Dama

Delhi Market Recovery and Q4 Outlook Direct
In terms of how the business is shaping up, we expect January to March quarter to totally normalize Delhi. We have already begun our journey of normalizing Delhi in the last month of the previous quarter. And while we do not release individual state-wise volumes or growth, we are collectively, obviously, Delhi still being one of the early three states and being a reasonable contributor to our journey, when you start seeing the projection of 50% growth for Q4, we believe that it gives you sufficient confidence that Delhi will be totally normalized and back on track within this quarter.

Provided a clear timeline for Delhi market normalization (by end of Q4 FY26), which is critical for the company's overall consumer business growth targets.

Asked by Dhaval Dama

UP Market Share Target by FY29 Direct
So we have in our FY'29 projection anchored UP at 5 million cases, which pegs us even if the market does not grow and holds its volume, it pegs us 5% share.

Management provided a specific long-term market share target for the crucial UP market, offering clarity on their strategic ambitions in this large state.

Asked by Chandrasekhar Sridhar

Social Media Marketing for New Brands Direct
So thank you for that suggestion. And our market our A&P spends are based on the needs for the business in the markets that we are present in, so they are prioritized according to that. And as the priority for social media increases, we will increase our spends in that channel. But yes, thank you very much for the suggestion.

An analyst provided actionable feedback on marketing strategy for new premium brands, and management acknowledged it, indicating a potential shift in A&P allocation towards social media.

Asked by Nishant Bhatt

3 min read 6 chapters

Detailed narrative

Manufacturing Business & UP Expansion

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.

Consumer Business Growth (P&A and R&O)

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.

Delhi Market Recovery and Policy Impact

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.

Input Cost Trends

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.

Capital Allocation and Fundraise Strategy

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.

Strategic Vision and Brand Innovation

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.

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