Record volume growth, but profitability collapsed—margin story deferred

Revenue grew 160.7% YoY to ₹2,252 Cr; volumes up 172% but mix-adjusted

Reported EBITDA ₹169 Cr is on adjusted basis; actual margin after amortization lower

Reported PAT ₹31.6 Cr, NPM 1.4%—64% YoY decline. Adjusted figures exclude amortization & exceptions

Gross margin fell 310 bps QoQ (45.2% to 42.1%); inflation impact material despite offsets

Confirmed in Q&A; South seamless, North/East/West improving but no granular state data

Beyond FY27: mid-teens CAGR (vs prior 'accelerating to low-double digit'). Driven by new launches FY28 onwards.

FY29 target 16–18% with 'upward bias' (vs prior vague '150–250 bps over 24–36 months'). Concrete and front-loaded.

High single- to low double-digit remains unchanged. Implication: full-year at risk given Q1 challenges.

Packaging inflation ongoing; margin recovery pushed to Q3/Q4 FY27 seasonality and FY29 structural targets, not immediate.

South seamless transition given our pre-existing scale. Karnataka good uptake post price reduction, market share improved. All states saw improvements vs exit; South better than North/East/West but all positive.

Peak pre-COVID (2019–20) was ~0.5M cases. Target 12–18 month recovery. Team scale-up 350→850 headcount completed; pan-India sales & manufacturing footprint added.

IB-only, TSMA-related issues. No granular detail given on individual reasons.

Segment was dormant, activity now healthy for category growth. Large country liquor volume just below our price point; activations help. We adding A&SP reinvestment, 28k outlets engaged.

Assuming inflation status quo, Q3–Q4 significant uptick due to seasonality. Q2 margin similar range but with incremental A&SP spend.

FY27 focused on IB integration and distribution width. Vacant portfolio slots for new launches in next 12–36 months; mid-double digit growth, mid-teens CAGR till FY29. Premium/luxury leveraging new distribution infrastructure.

Double-digit growth. Acquired at 21.5M cases; expect double-digit by year-end.

Combined NSR only; no bifurcated segment-level NSR provided.

3 years since last increase; active government discussions. Expected soon. 150–200 bps annualized margin upside if realized.

60–70% of bottling benefit already in Q1 numbers. Full benefit pending.

Industry hovering 6–7 lakh cases/month, stable. IB performing well, market share gains in state at relevant price point.

<0.5M cases currently. TN largest brandy market (50M+ cases). Watching for policy changes post new government; imports/market-opening upside.

Integration 90% complete by April. Near-term: widen/deepen IB distribution, A&SP reinvestment. Long-term: luxury portfolio. Risks: inflation, competition. Mitigators: price increases (Telangana, other states), supply chain optimization, cost synergies.

Inflation to watch. Price increases in states, ongoing discussions elsewhere. Term debt ₹2,000 Cr structured 80% due years 5–6. Net debt target ₹1,700 Cr by Mar 2027 (from ₹2,100 Cr Q1). Supply chain optimization critical. Margin expansion 250–400 bps on acquired business regardless.

FY27: Maintains prior volume guidance. Revenue uplift mechanism 300 bps above volume (mix, pricing). Specific quantified for first time.

New launches FY28 onwards unlock mid-double digit growth initially, escalating to mid-teens CAGR. Substantive upgrade vs prior 'low double-digit acceleration'.

Q1 achieved 16.1% adjusted; management expects Q3/Q4 uptick seasonality + offset from A&SP spend. Q2 margin range similar.

Structured timeline upgrade vs prior vague '150–250 bps expansion 24–36 months'. Implies ~100–300 bps expansion from Q1 16.1% by FY29. Concrete but ambitious.

Synergies on supply chain, cost reduction expected 250–400 bps on Imperial Blue standalone by FY29, independent of inflation assumptions.

Focus mentioned on efficient capital deployment and working capital investment. Net debt reduction ₹400 Cr FY27 implies capex discipline.

PAT down 64% YoY to ₹31.6 Cr (NPM 1.4%) despite revenue +161%. Adjusted PAT ₹96 Cr (9.4%) masks ₹30 Cr exceptions & amortization. Gross margin fell 310 bps QoQ to 42.1%.

90% of Imperial Blue integrated by April; 1 state remains under TSMA with March 2027 outer date. Disruptions in Odisha, Punjab, Uttarakhand, Karnataka attributed to TSMA (no detail given). Sales & manufacturing at scale in new geographies (North, East, West) only 7 months in.

ICONiQ White targeting 50% growth, McDowell's ramping scotch in segment; management sees long-dormant segment now active. Trade spend escalation risk. Large country liquor volume just below price point is buffer but no guarantee.

Net debt ₹2,100 Cr Q1 (vs target ₹1,700 Cr March 2027). Gross debt ₹2,241 Cr. Increase due to full working capital cycle investment post-acquisition. Repayment structure front-loaded on term debt into years 5–6 provides buffer but elevation from legacy ₹700 Cr+ range.

Telangana price increase 150–200 bps margin upside but not yet finalized (3 years since last increase; active discussions). Tamil Nadu market opening (50M+ brandy cases) speculative on new government policy; current TI presence <0.5M cases.