Q4 2026 Som Distilleries and Breweries Ltd Earnings Call Transcript
Key Points
- The IMFL business showed resilience with a 32% volume growth, supported by improved market penetration and consumer behavior towards the company's premium portfolio.
- The company maintained a healthy balance sheet despite lower profitability and ongoing capital expenditure, with a comfortable gross debt-to-equity ratio of 0.30x.
- Som Distilleries & Breweries Ltd (BOM:507514) is witnessing improved offtake trends in Karnataka following the rationalization of the excise duty structure.
- The greenfield brewery project in Uttar Pradesh is on schedule, with commercial operations expected to commence soon, enhancing production capacities and regional market access.
- Management remains confident of resolving the Bhopal facility license issue without long-term operational impacts, and anticipates a favorable resolution soon.
- Consolidated revenue declined by 14.8% to INR1,233 crore, with EBITDA and PAT also declining significantly.
- Beer volumes declined by 20% due to temporary license-related disruptions at the Bhopal facility and subdued demand in key markets like Karnataka and Odisha.
- The industry faced significant inflationary pressures, impacting input costs for glass bottles, aluminum cans, barley, and logistics, which adversely affected margins.
- The Bhopal facility's license issue has led to operational disruptions, affecting supply to several markets and contributing to a loss of market share.
- There were concerns about key managerial personnel changes, including the resignation of the Company Secretary and internal auditor, raising questions about internal stability.
Ladies and gentlemen, good day, and welcome to Som Distilleries and Breweries Limited Q4 and FY 2026 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Diwakaran Suryanarayana, Chief Operating Officer. Thank you, and over to you, Mr. Suryanarayana.
Thank you. Thank you. Hello, good afternoon, all of you. My name is Diwakaran, and I am the Chief Operating Officer of this company. Nakul and I thank you for joining us today. It's always a pleasure to connect with our esteemed investors and analysts. I extend a warm welcome to all on behalf of Som.
Full year '26 was a challenging
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