ABD commits ₹1,000 crore to capacity and premiumisation, targets ₹5,500 crore revenue by FY28
Allied Blenders & Distillers has deployed ₹350 crore of a planned ₹1,000 crore capex programme, with the balance due over two years for bottling expansion and backward integration. A Rangapur, Telangana single-malt plant is slated to begin operations in H2 FY27.
What happened
Allied Blenders & Distillers (ABD) · Allied Blenders & Distillers is investing Rs 1,000 crore to expand bottling and backward integration across key states,
Key facts
- Rs 1,000 crore capex programme
- Rs 350 crore deployed
- Rs 650 crore remaining investment over two years
- FY28 revenue target: Rs 5,500 crore
- FY28 EBITDA target: nearly Rs 1,000 crore
- FY26 consolidated revenue: Rs 3,949 crore
- FY26 consolidated EBITDA: Rs 568 crore
- Q1 FY27 revenue: Rs 984 crore, up 5.8% YoY
- Q1 FY27 net profit: Rs 45.42 crore, down 18.6% YoY
- Q1 FY27 EBITDA: Rs 120 crore
- Q1 FY27 EBITDA margin: 12.2%, down 55 basis points YoY
- Target gross margin: over 48%
- Target EBITDA margin: 18-20%
Why this matters
ABD’s Rangapur single-malt plant and backward-integration plans make it a more strategically scaled premium-spirts platform, potentially sharpening its appeal for brand, distribution or supply-chain partnerships.
What to watch
- Quarterly capex deployment versus the remaining roughly ₹650 crore programme and any revision to completion timelines.
- Commissioning milestones, production capacity and commercial-launch timing for the Rangapur Telangana single-malt plant.
- Premium-and-luxury portfolio sales growth, realisation per case and gross-margin movement.
- Market-share changes in core whisky categories and expansion into higher-value state markets.
- State excise-duty changes, distribution-policy shifts and alcohol price-approval delays.
- Debt, operating cash flow, interest costs and working-capital intensity as new capacity comes online.
- Accelerate bottling-line additions in high-volume and high-margin state markets.
- Increase backward integration for blending, maturation, packaging and key spirit inputs to improve supply control and unit economics.
- Build distribution, on-trade visibility and premium-brand marketing ahead of the Rangapur single-malt launch in H2 FY27.
- Prioritise premium whisky and prestige offerings where price/mix gains can offset state excise and input-cost volatility.
- Manage capex phasing and working capital to prevent expansion from weakening balance-sheet flexibility.