Allied Blenders and Distillers Limited (ABD) has received a significant upgrade in its credit rating from India Ratings & Research (Ind-Ra). The rating for the company’s bank facilities has been elevated by two notches, from ‘IND A’ to ‘IND AA-‘, with a Stable Outlook. This upgrade reflects ABD’s sustained growth, improved profitability driven by premiumization, and strong market position.
Credit Rating Upgrade Announced
Allied Blenders and Distillers Limited (ABD), a leading spirits company, announced today that India Ratings & Research (Ind-Ra) has upgraded its credit rating. The rating on the company’s bank facilities has been moved up by two notches, from ‘IND A’ to ‘IND AA-‘. The outlook for the rating has been assigned as Stable.
Key Drivers for the Upgrade
The rating upgrade is primarily attributed to ABD’s continued growth in consolidated operations during FY26, which Ind-Ra expects to persist and expand over the medium term. The Stable Outlook is based on the agency’s expectation that ABD’s improved profitability will be sustained. This is driven by a strategic shift towards a better sales-mix through premiumization, leading to enhanced gross margins. Furthermore, ongoing backward integration projects are anticipated to bolster EBITDA margins in the medium term, while the consolidated net leverage is expected to remain at comfortable levels despite ongoing capital expenditure.
Market Position and Industry Factors
The rating action also takes into account ABD’s strong market position within the Indian Made Foreign Liquor (IMFL) industry. The company’s pan-India diversification and the overall expansion of the industry further support the sustainability of its scale and prospects for steady improvement in the medium to long term.
Management Commentary
Commenting on the upgrade, Amar Sinha, Managing Director of ABD, stated, “This two-notch upgrade to IND AA- with a Stable Outlook is an important affirmation of ABD’s evolving financial profile and the sustained progress we are making across scale, profitability and balance-sheet strength. It reflects the discipline with which we are executing our premiumisation agenda, improving operating resilience and investing in long-term capabilities, including backward integration. We remain focused on building a stronger, more agile and future-ready ABD while continuing to pursue growth with financial prudence.”
The press release was issued on August 19, 2026.
Source: BSE
