IMFL growth intact, but profit collapse signals margin stress ahead

Delivered ₹72.9 Cr at 58% value growth, 40% volume growth verified

Verified: strong consumer pull, central province key driver

Confirmed 20% but down from 22% prior quarter due to 10%+ raw material price increase

Q1 delivered 40% volume growth; guidance reaffirmed at 30%; tracking above prior guide

Q1 consolidated EBITDA only 11%; potable division 18%; ethanol heavy drag

6% YoY revenue growth but PAT down 24.6% YoY; profit collapse amid revenue growth signals margin stress, not strength

Prior guidance 15% FY27 EBITDA; Q1 delivered 11% consolidated (18% potable only). Ethanol and grain prices eroded 4pp.

PAT down 24.6% YoY to ₹17.8 Cr on +6% revenue; margin compression from mix (ethanol loss, licensed business shrink) unannounced.

23% of revenue (up from 17% FY26); 40% volume, 58% value growth; CP Series 260% growth confirms brand momentum.

RTD (5 flavours, ₹120/can, 8% ABV), tequila (INR5K-7K), premium brandy, single malt (Q3 FY27). No contribution yet; high brand-building cost.

Inbrew (large contributor) shifted from licensing to contract mfg mid-Q2 FY26; Diageo revenue flat. Expect ₹100M+ steady-state.

No plans to shift. Running dedicated ethanol plant to avail government subsidy & interest subvention scheme. Plant efficiency benefits (energy savings, boiler sharing) offset losses partially.

Phased approach. One unit to SDF by Dec 2026; full-fledged ops from April 2027 onwards when all 3 units moved.

Inbrew licensing closed mid-Q2 FY26, now contract mfg. Diageo revenue flat. Steady-state ~₹100M+ annually (seasonal rum only). Focus on proprietary brands.

Nicobar 500-700 cases/month; Hillfort 1,000 cases/month. Target 10-15% tequila share (40K case market), 3-4% RTD, 4% malt. Slow penetration; 2-3 year timelines.

Breakeven ₹57-60/L. FY27 revenue same as FY26 (max capacity run). Next tender Oct onwards; expect better realization. Grain prices volatile.

Mainly ethanol business. Grain prices up, realization down, government quota allocation lower. Expect gradual improvement from Oct onwards.

Working on brand design & liquid quality. Added peated malt for premium feel at INR1,500 (premium liquid inside). 4-5 out of 10 buyers repeat. Slow process; 1-1.5 years to see results.

Tequila market 1.5L cases; we target 10-15% of ₹5K-7K segment (40K cases). Different positioning—look/feel premium, liquid substance strong. RTD 15-17% CAGR market, 3-4% share target.

Margin fell due to 10%+ raw material price increase. IMFL volume fixed by govt quota—revenue growth only from price inflation. Margin should stabilize as costs ease.

No plans. Ethanol part of strategy; government looking at E85 blending & flex-fuel cars. Momentary cycle. Professional mgmt team runs it separately.

80% IMFL proprietary from MP & Kerala (mature markets). Revenue 23% now vs. 17% FY26. Expect 30% YoY growth to continue; revenue mix to improve as new launches scale.

Tequila: 1.5L India cases; we target ₹5K-7K segment (40K cases/year), 10-15% share. RTD: fragmented; 8% ABV category small but growing 15-17% CAGR. Risk: brands take 2-3 years to build.

Q1 delivered 40% volume, 58% value growth; CP Series +260% confirms momentum. Target reaffirmed for full year.

Q1 only 5% consolidated growth (6% YoY); ethanol and licensed business headwinds offset IMFL strength. Full-year target appears at risk.

Q1 delivered 11% consolidated; ethanol bleeding, grain inflation, raw material +10% compressing margins. FY27 target will miss without significant improvement.

Delivered 18% in Q1; stable but raw materials and grain prices remain elevated. Dependent on input cost stabilization.

On track per management; phased implementation (one unit by Dec, full capacity April). Expected to drive bottling efficiency, cost reduction in Kerala.

8-9 months maturation underway; results 'coming out fairly well' per management. Single malt launch likely FY28, revenue Q3 onwards assumption.

Ethanol cost ₹57-58/L, selling ₹52-54/L currently; losing ₹5-6/L; depends on Oct government tender & private OMC allocation. Downside if quota remains low.

Raw material prices up 10%+ in Q1; grain at ₹21K/ton (elevated). IMFL margin fell from 22% to 20% despite 58% revenue growth. Structural risk if monsoon fails.

RTD (launched June, 1 state), tequila (Q2 launch), malt (Q3 FY27 revenue), premium brandy all unproven. Hillfort whiskey case shows brand penetration slow (1,500 cases/month, 1-1.5 year timelines). Market share targets 10-15% tequila, 3-4% RTD, 4% malt appear aggressive.

80% of IMFL proprietary revenue from MP & Kerala. Odisha, Karnataka, AP entry recent; takes 1-2 years to contribute meaningfully. Regulatory changes in major states (UP policy shift noted) can impact volumes quickly.

Inbrew licensing shifted to contract manufacturing mid-Q2 FY26; Diageo revenue flat. IMFL licensed revenue halved; steady-state now ₹100M+ vs. prior higher run-rate. Loss of revenue diversification; over-reliance on proprietary brands growth.