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Allied Blenders Targets Mid-Double-Digit Growth by FY26
31 Jan
Summary
- Company targets mid-double-digit top-line growth by FY26.
- EBITDA margins may expand 400 basis points by FY28.
- Premium portfolio sales volume to reach 50% by Q4 FY26.
Allied Blenders & Distillers (ABD) is poised for mid-double-digit top-line growth through FY26, with aspirations to sustain this trajectory into FY27 and beyond. This growth is primarily fueled by the company's increasing focus on its premium product offerings.
By the fourth quarter of FY26, ABD's premium or prestige & above (P&A) portfolio is expected to constitute 50% of its sales volumes, up from the current 48.5%. This shift is attributed to a growing consumer preference for higher-quality beverages, as evidenced by the 16.9% year-on-year increase in P&A volumes in Q3 FY26.
Despite an overall sales volume growth of 1.3% to nine million cases in Q3 FY26, the popular segment experienced a 9.6% decline, partly due to challenges in the Maharashtra market. ABD is also expanding its luxury portfolio, ABD Maestro, including brands like Zoya gin, into international markets and duty-free stores.
The company is actively increasing its international footprint, targeting 35 markets by the end of FY26, having already entered the US, Canada, Australia, New Zealand, and France. A single malt whiskey distillery in Telangana is slated for completion by 2029.
ABD remains open to strategic acquisitions for brand and manufacturing infrastructure expansion. Its capital expenditure is under ₹700 crore, which includes establishing a new bottling plant in Uttar Pradesh.
