Margin improved again, but higher charges cut Allied Blenders' profit
Revenue grew 6.08% year on year, while higher depreciation, interest and tax reduced net profit by 18.65%.
Filed 23 Jul 2026, 19:10 IST · after market close · Allied Blenders & Distillers Ltd (ABDL)
Key takeaways
- Consolidated revenue grew 6.08% year on year, while the operating margin improved 1.30 percentage points to -74.76%.
- Net profit fell 18.65% year on year to Rs 45.42 cr as interest rose 7.28%, depreciation rose 46.56% and the tax rate increased 6.86 percentage points.
- The stock rose 3.39% after the results, well above its 1.3% median absolute post-results move across eight prior quarters.
Price around the results
Revenue grew, but profitability remained deeply negative
Allied Blenders & Distillers reported consolidated revenue growth of 6.08% year on year in Q1FY27, while expenses grew 5.29%. That slower cost growth improved operating margin by 1.30 percentage points, although it remained at -74.76%. Sequentially, revenue fell 2.78%, but expenses fell faster at 3.44%, lifting the margin by 1.21 percentage points.
Lower sequential tax helped profit quality, not the annual outcome
Net profit rose 20.70% sequentially even as profit before tax fell 33.85%, mainly because the tax rate dropped from 63.31% to 33.05% and interest expense fell 42.40%. Other income accounted for 6.84% of pre-tax profit, so it was a modest but visible contributor to reported earnings. Year on year, the higher tax rate, 7.28% increase in interest and 46.56% rise in depreciation outweighed the operating-margin improvement, leaving net profit down 18.65%.
Operating margin has improved for a third straight quarter
The operating margin improved from -85.56% in Q2FY26 to -83.21% in Q3FY26, -75.97% in Q4FY26 and -74.76% in Q1FY27. Management said global supply-chain disruptions had a temporary impact during the quarter and that the company remains focused on margin improvement in a medium-term inflationary environment. It also said the in-house PET bottle manufacturing facility is operational and EBITDA accretive.
The market move was larger than the stock's usual result-day reaction
The stock gained 3.39% after the results, compared with a median absolute move of 1.3% across eight previous results reactions. Its prior history was evenly split between four up moves and four down moves, so the latest rise was larger than usual but not consistent with a one-way reaction pattern. Management said the Prestige & Above segment recorded broad-based volume and value growth across regions, while Officer’s Choice retained the No. 1 position in India's Mass Premium category and remained the No. 1 exported brand.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹979 cr | ₹1,007 cr | -2.78% | +6.08% |
| Other income | ₹5 cr | ₹13 cr | -64.14% | -34.56% |
| Expenses | ₹1,711 cr | ₹1,772 cr | -3.44% | +5.29% |
| Operating profit | ₹-732 cr | ₹-765 cr | +4.32% | -4.26% |
| Operating margin (%) | -74.76% | -75.97% | — | — |
| Interest | ₹29 cr | ₹51 cr | -42.40% | +7.28% |
| Depreciation | ₹23 cr | ₹29 cr | -20.48% | +46.56% |
| Profit before tax | ₹68 cr | ₹103 cr | -33.85% | -10.31% |
| Tax | ₹22 cr | ₹65 cr | -65.47% | +13.18% |
| Net profit | ₹45 cr | ₹38 cr | +20.70% | -18.65% |
| EPS (₹) | ₹1.76 | ₹1.46 | +20.55% | -12.87% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.39% | +3.82% |
Volume on the results session was 1.50× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- In Q1 FY27, the P&A segment recorded broad-based volume and value growth across regions.
New initiatives
- The in-house PET bottle manufacturing facility is operational and EBITDA accretive.
- The company is using a Build, Buy and Partner approach for capital allocation.
Competition
- Officer’s Choice retained the No. 1 position in India’s Mass Premium category and remained India’s No. 1 exported brand.
Problems & risks
- Global supply chain disruptions had a temporary impact during the quarter.
- The company is operating in a medium-term inflationary environment and is focused on margin improvement.
- The company identified Telangana outstanding dues as requiring gradual clearance.
- The company reported Telangana overdues and payment of statutory arrears.
What to watch
- Whether operating margin improves from -74.76% for a fourth straight quarter.
- Whether net profit can remain less dependent on the sequential tax rate of 33.05%.
- Whether the in-house PET facility's reported EBITDA contribution is reflected in operating performance.