Associated Alcohols & Breweries Reports Q1 FY27 Results; Proprietary IMF Business Drives Growth Amid Ethanol Weakness
Associated Alcohols & Breweries Ltd. has released its financial results and investor presentation for the quarter ended June 30, 2026 (Q1 FY27). The company posted steady revenue growth, supported by strong demand for its proprietary Indian Made Foreign Liquor (IMF) portfolio, while the ethanol business continued to face pricing and margin pressures due to industry oversupply.
Q1 FY27 Financial Highlights
Associated Alcohols & Breweries reported the following consolidated financial performance for the quarter:
- Net Revenue: ₹2,809 million (₹280.9 crore), up 5% year-on-year (YoY)
- Gross Profit: ₹1,029 million, down 3% YoY
- EBITDA: ₹299 million, with an EBITDA margin of 11%
- Profit After Tax (PAT): ₹178 million, translating to a PAT margin of 6%
Proprietary IMF Portfolio Continues Strong Growth
The company’s proprietary IMF business remained the key growth driver during the quarter, with revenue increasing 58% YoY as brand penetration expanded across key markets.
One of the strongest performers was the CP Series, which recorded an impressive 260% YoY growth in sales volume, reflecting rising consumer acceptance and continued distribution expansion.
Meanwhile, the licensed IMF business witnessed lower volumes following the transition of the company’s arrangement with Inbrew from a traditional licensing model to a contract manufacturing structure.
Ethanol Business Faces Industry Headwinds
The ethanol segment remained under pressure during the quarter due to lower realization and compressed margins amid an oversupplied market.
Management indicated that the challenging pricing environment is expected to continue throughout FY27, which may keep profitability in the ethanol business under pressure despite stable demand.
Expanding Product Portfolio with Ready-to-Drink Launch
As part of its premiumization and product diversification strategy, Associated Alcohols & Breweries entered the fast-growing Ready-to-Drink (RTD) category with the launch of ‘Culture’ in Madhya Pradesh during June 2026.
The new RTD range is available in five flavor variants, and the company is currently seeking product registrations in eight additional states, including Karnataka, Goa, and West Bengal, to expand its market presence.
New Product Launches Planned in Q2 FY27
The company has outlined several new product introductions for the coming quarter:
- Tequila launch beginning in Madhya Pradesh.
- Premium Brandy rollout in Kerala.
- Continued expansion of its premium liquor portfolio to strengthen its presence across multiple consumer segments.
Capacity Expansion Progress
Associated Alcohols & Breweries is also upgrading machinery at its SDF Industries facility to enhance production efficiency and support future growth. The modernization project is progressing as planned and is expected to be commissioned by December 2026.