Allied Blenders & Distillers reported a 5.8% year-on-year increase in its consolidated income from operations for Q1 FY27, reaching ₹984 crore. Total volume grew by 6.2% to 9 million cases, driven by the Prestige & Above portfolio. Gross margin expanded by 277 basis points to 46%, despite supply chain challenges. The company is focused on premiumization-led growth and backward integration.
Allied Blenders & Distillers Reports Strong Q1 FY27 Performance
Allied Blenders & Distillers Limited (ABD) announced its financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), highlighting steady progress in its transformation journey. The company’s consolidated income from operations stood at ₹984 crore, marking a 5.8% growth compared to ₹930 crore in the same quarter last year (Q1 FY26). Total volume sales reached 9 million cases, an increase of 6.2% year-on-year.
Key Growth Drivers and Financials
The volume growth was primarily fueled by the Prestige & Above (P&A) portfolio, which saw a 10.7% increase, while the Mass Premium and other categories grew by 2.3%. Notably, ABD’s performance in the P&A segment outpaced the industry’s low single-digit growth.
Gross margin experienced significant expansion, increasing by 277 basis points to 46%. This improvement was attributed to a favorable input cost environment and early benefits from backward integration initiatives, even with the temporary impact of global supply chain disruptions. Reported EBITDA for the quarter was ₹120 crore, with an EBITDA margin of 12.2%.
Profitability was impacted by global supply chain disruptions, estimated at ₹24 crore. On a like-to-like basis, excluding these disruptions, gross margin would have been 48.4% and EBITDA ₹144 crore, reflecting a substantial year-on-year expansion. The company’s focus on portfolio premiumization and brand momentum, particularly with the ICONIQ White brand, continues to drive value. ICONIQ White delivered 3.1 million cases in Q1 FY27, a 33.8% growth year-on-year.
Strategic Priorities and Outlook
ABD remains committed to its strategic priorities: premiumization-led growth, enhanced consumer engagement, disciplined execution, backward integration, and prudent capital allocation. The company is also investing in expanding its super-premium and luxury portfolio, with ABD Maestro showing promising early traction.
International business continues to be a strategic growth area, with ABD expanding its footprint to 39 countries. Backward integration remains a key pillar, with the commissioning of a PET bottles manufacturing facility and the upcoming operationalization of a malt distillery expected to strengthen in-house capacity and improve cost efficiencies.
Looking ahead, ABD expects top-line growth in line with its mid-teens guidance, supported by premium mix improvement and backward integration benefits, while maintaining FY27 EBITDA margins broadly in line with FY26.
Source: BSE
