AlcoBev company ABDL targets mid-teen growth in FY27, aims to cross Rs 600 crore EBITDA

New Delhi: Alco-beverage firm ABDL expects to deliver mid-teen growth in revenue and volume in FY27, driven by premiumisation, exports and capacity expansion, despite uncertainties arising from geopolitical tensions and supply chain disruptions, Managing Director Amar Sinha said.

Allied Blenders and Distillers Ltd (ABDL), which owns brands such as Officer's Choice and ICONiQ, is pursuing a three-year transformation strategy focused on premiumisation, strengthening margins and expanding its international footprint, he said.

The Chhabria family-promoted firm, which is expanding its international footprint, expects to increase presence to 60-70 countries over the next three years, driven by premium and mass-premium portfolio.


"We would have a volume and top-line growth of mid-teens in FY27. EBITDA margins should remain stable and comparable to FY26," Sinha told PTI in an interaction.

The company said its premiumisation drive remains the key growth lever going forward as it reported a 5.8 per cent year-on-year rise in income from operations to Rs 984 crore in the June quarter on volume of 9 million cases (9 litres each), up 6.2 per cent.

"I genuinely believe that now ABDL is in a three-year transformation journey," Sinha said.

According to Sinha, prestige-and-above (P&A) brands accounted for 48.2 per cent of volumes and 59.3 per cent of value sales in June quarter FY27 and ABDL aims to take this higher by further increasing its share in the total basket.

"Our vision is to take P&A volume saliency above 50 per cent and P&A value saliency to 60-65 per cent," he said, adding that premiumisation will continue to be a key driver of growth and profitability for the company.

According to Sinha, the company has already reached a level where its ICONiQ White is now selling over one million cases every month.

On the outlook for FY27, Sinha flagged continuing volatility from the geopolitical crisis but said the company remained "cautiously optimistic". EBITDA margins are expected to stay stable compared with FY26.

He said soft grain ENA and extra neutral alcohol (ENA) prices had helped cushion the impact of the crisis in the first quarter and were likely to continue through the year, while packaging costs for glass bottles and PET should also start softening.

"So to my mind, over the next three months, the situation should become better. It should become more comfortable. And the last two quarters of the year should therefore start fructifying for the alcoBev space," he said.

Sinha also mentioned the Rs 24 crore hit from global supply chain disruptions -- higher glass bottle costs, rising PET and PET resin prices, and the loss of 1 lakh export cases to the Gulf region. Excluding this impact, EBITDA would have been Rs 144 crore and PAT Rs 63 crore, he said.

"Next year (FY27) , in any case, we should be crossing the Rs 600 crore EBITDA mark very easily," Sinha said.

On the domestic market, Sinha said the company is looking to consolidate its position in Uttar Pradesh, which he described as India's fastest-growing liquor market.

Following the acquisition of distillery and bottling assets in the state, ABDL has become the second-largest IMFL company in Uttar Pradesh and aims to emerge as the market leader within the next two years.

"My vision is to make ABDL the largest company in Uttar Pradesh over the next two years," he said.

The company is also strengthening backward integration. Its malt plant at Rangapur in Telangana has been commissioned and is expected to become operational in the second half of FY27.

The facility will initially supply malt spirit for ABDL's premium brands and later support the company's plans to launch its own Indian single malt whisky.

"We have ambitions for launching our own Indian single malt in the years ahead," Sinha said.

ABDL is also stepping up its international ambitions. The company has expanded its presence to 39 countries from 23 a year ago and plans to further widen its global reach.

"Over the next three years, we should easily be targeting 60 to 70 countries with our premium portfolio and mass premium brands," Sinha said, adding that exports remain a strategic growth pillar for the company.