Allied Blenders and Distillers Crosses 10 Million Cases in Q2 FY27, Margin Impacted by Supply Chain Costs

Allied Blenders and Distillers Limited (ABD) has posted its highest-ever quarterly sales volumes, crossing the 10 million case mark in the July-September quarter of FY27. According to the company's earnings release dated October 27, 2026, the volume milestone represents an 11.1 per cent increase from 9 million cases in Q2 FY26. This growth drove revenue from operations up 15.8 per cent year-on-year to ₹1,152 crore.

Despite the topline growth supported by all four of ABD's millionaire brands on a sequential basis, the company's stock fell 3.43 per cent to ₹669.40 on Wednesday following the filing of the results with exchanges. ICONiQ White, identified as the company’s fastest-growing brand, saw a 20.6 per cent year-on-year increase to 3.2 million cases during the quarter.

The earnings report highlighted pressures on profitability. EBITDA margins contracted by 66 basis points to 12.4 per cent, down from 13.1 per cent in the corresponding quarter of the previous year. While gross margins saw gains, these were offset by planned investments in core brand revamps and the newly established super-premium portfolio under ABD Maestro.

Additionally, the company absorbed ₹29 crore in costs resulting from global supply chain disruptions linked to West Asia. ABD stated that excluding this one-time impact, the like-to-like EBITDA would have been ₹172 crore—up 32.3 per cent year-on-year—with a margin of 14.9 per cent. Reported EBITDA stood at ₹143 crore, reflecting a 10 per cent year-on-year increase, while profit after tax rose 9.7 per cent to ₹69 crore.

Net debt during the half-year increased by ₹292 crore to reach ₹1,273 crore. This increase was primarily driven by capital expenditure of ₹351 crore, which pushed the Net Debt/EBITDA ratio to 2.2x, moving above the company's stated target of remaining below 2.0x.

During the quarter, ABD commissioned a bottling unit in Moradabad, Uttar Pradesh, and a malt distillery in Rangapur, Telangana. These facilities are part of a multi-year backward integration program that the company anticipates will expand EBITDA margins by approximately 300 basis points by FY28. Operational updates also included the launch of The Indian Edit, a premium whisky priced at ₹1,550 for a 750 ml bottle in Maharashtra, alongside a packaging refresh for Officer’s Choice Blue.

Amid these financial developments, India Ratings & Research upgraded ABD’s credit rating by two notches to ‘IND AA-’ with a Stable Outlook during the period.

"Allied Blenders and Distillers demonstrates strong volume growth and consumer demand across its core brands, which is a positive indicator for its market position. However, the margin contraction and rising net debt due to capital expenditure and supply chain headwinds highlight the operational risks of scaling infrastructure. Executing long-term backward integration plans successfully will be critical for stabilizing margins and achieving their targeted financial metrics by FY28." — Dr. Shishir Gupta, Founder & CEO, StartupLanes