Revenue growth outpaced by costs, keeping ABDL's margin below peers
Sequential momentum improved as revenue grew 17.25% and margin widened 0.32 percentage points, helped by lower interest and tax rates.
Filed 27 Oct 2026, 19:39 IST · after market close · Allied Blenders & Distillers Ltd (ABDL)
Key takeaways
- Q2FY27 revenue grew 15.94% year on year, but expenses rose 16.66%, narrowing operating margin by 0.55 percentage points.
- Net profit increased 9.69% year on year as lower interest costs partly offset a 3.98-percentage-point rise in the tax rate.
- Quarterly volumes crossed 10 million cases for the first time, management said, while operating margin remained 1.72 percentage points below the 13-peer sector median.
Price around the results
Sales growth accelerated, but costs diluted the benefit
Allied Blenders & Distillers reported consolidated revenue growth of 15.94% year on year in Q2FY27, while expenses grew faster at 16.66%. That pushed operating profit growth down to 10.96% and narrowed operating margin by 0.55 percentage points. Management said quarterly volumes crossed 10 million cases for the first time, supported by growth across segments.
Sequential margin recovery was helped by lower finance costs
On a sequential basis, revenue rose 17.25% and expenses rose 16.82%, allowing operating margin to recover by 0.32 percentage points. Interest costs fell 6.41%, while the tax rate declined by 4.09 percentage points, supporting the 51.96% rise in net profit. Other income accounted for 4.13% of profit before tax, so it was not the main driver of earnings; year-on-year profit was also restrained by the higher tax rate.
Margin improved from Q1 but remains below the sector median
Operating margin has recovered from 11.80% in Q1FY27, but remains below the 13.53% recorded in Q3FY26 and the 16.80% in Q4FY26. ABDL's 12.12% margin was 1.72 percentage points below the median for 13 Fast Moving Consumer Goods peers that had reported the quarter. Management said global supply-chain disruptions continued to affect H1FY27.
Management outlined expansion and profitability targets
Management said it expects EBITDA margin to rise from 14.4% in FY26 to about 18.0% by FY28 and is targeting ROCE of 23%–25% by FY28, versus 19.7% in FY26. The company said it plans a 3.0 MLPA malt distillery in Aurangabad in Q3FY28 and a 66.0 MLPA dual-mode distillery in Vizianagaram by H1FY29. Management also said the Vizianagaram project includes acquiring up to a 50% stake in KION.
No market reaction yet after the post-close filing
The results were filed after market close, so there is no post-results share-price reaction to assess yet. After eight recent results, the stock rose five times and fell three times, with a median absolute move of 3.02%, indicating that the eventual reaction can be compared with a generally mixed history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,148 cr | ₹979 cr | +17.25% | +15.94% |
| Other income | ₹4 cr | ₹5 cr | -13.58% | -15.76% |
| Expenses | ₹1,009 cr | ₹863 cr | +16.82% | +16.66% |
| Operating profit | ₹139 cr | ₹115 cr | +20.52% | +10.96% |
| Operating margin (%) | 12.12% | 11.80% | — | — |
| Interest | ₹28 cr | ₹29 cr | -6.41% | -7.45% |
| Depreciation | ₹18 cr | ₹23 cr | -19.18% | +11.64% |
| Profit before tax | ₹97 cr | ₹68 cr | +43.22% | +15.85% |
| Tax | ₹28 cr | ₹22 cr | +25.51% | +34.32% |
| Net profit | ₹69 cr | ₹45 cr | +51.96% | +9.69% |
| EPS (₹) | ₹2.56 | ₹1.76 | +45.45% | +14.80% |
Operating margin of 12.12% compares with a Fast Moving Consumer Goods sector median of 13.84% across 13 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2FY27 quarterly volumes crossed 10 million cases for the first time, supported by growth across segments.
Guidance & outlook
- ABD expects EBITDA margin to rise from 14.4% in FY26 to about 18.0% by FY28.
- ABD is targeting ROCE of 23%–25% by FY28, up from 19.7% in FY26.
Expansion
- ABD plans a 3.0 MLPA malt distillery in Aurangabad, Maharashtra, in Q3 FY28.
- ABD plans to set up a 66.0 MLPA dual-mode distillery in Vizianagaram by H1 FY29.
- The Vizianagaram project includes acquiring up to a 50% stake in KION and setting up a dual-mode distillery.
Competition
- Officer’s Choice retained the number-one position in India’s Mass Premium category and led as India’s number-one exported brand.
Problems & risks
- ABD reported continued near-term impact from global supply chain disruptions during H1FY27.
- ABD said key financial metrics were marginally above its framework because of milestone-based payments for certain capex projects.
- ABD said outstanding Telangana dues were gradually being cleared, with sentiment improving.
What to watch
- Whether operating margin moves back toward the 13.84% median of the 13 reported sector peers.
- Whether expenses continue to grow more slowly than revenue after the Q2FY27 sequential gap of 16.82% versus 17.25%.
- Progress against management's stated path from 14.4% FY26 EBITDA margin toward about 18.0% by FY28.