Q1 2026 Associated Alcohols & Breweries Ltd Earnings Call Transcript
Key Points
- Associated Alcohols & Breweries Ltd (BOM:507526) reported a 6% year-on-year increase in net revenue for Q1 FY26, reaching INR276 crore.
- The company achieved a 32% year-on-year growth in EBITDA, with margins improving to 14%.
- The launch of new premium products, such as Hillfort Blended Malt Whiskey and Nicobar Gin, has been well-received, contributing to the company's growth in the premium segment.
- The company is expanding its geographic footprint by entering significant markets like Maharashtra and Uttar Pradesh, which are expected to drive future growth.
- Operational efficiencies have improved, with reduced operating expenses and power costs, contributing to better margins.
- Gross margins decreased by 3% quarter-on-quarter, from 43% in Q4 FY25 to 40% in Q1 FY26, despite stable raw material prices.
- The company's top line growth was limited due to a decrease in ENA sales, as more ENA is being used for internal consumption.
- The new excise policies in Maharashtra have created uncertainty, potentially impacting pricing and market strategy.
- The tequila launch has been delayed due to regulatory issues with the Mexican government, affecting the company's product expansion plans.
- The transition from franchisee sales to contract manufacturing with Inbrew is expected to impact the top line, although the company plans to offset this with increased focus on proprietary brands.
Ladies and gentlemen, good day, and welcome to the Q1 FY26 earnings conference call of Associated Alcohols & Breweries Limited, hosted by Monarch Networth Capital Limited. (Operator Instructions) pleease note that this conference is being recorded. I now hand the conference over to Mr. Rahul Dani from Monarch Networth Capital Limited. Thank you, and over to you, sir.
Good evening, everyone. On behalf of Monarch Networth Capital Limited, it's our pleasure to host the senior management of Associated Alcohol & Breweries Limited. We have with us Mr. Anshuman Kedia, Whole-Time Director and CEO; Mr. Tushar Bhandari, Whole-Time Director; and CFO, Mr. Ankit Naguri, Deputy General Manager.
We also have Go India Advisors, the IR team on the call. Without wasting much time, I'll hand over the call to the management for opening remarks, and then we'll move to the Q&A. Thank you, and over to you, sir.
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