India-UK FTA, premium liquor brands to drive margin growth: Allied Blenders

Allied Blenders and Distillers (ABD) is banking on premium spirits and the India-UK trade deal to boost margins to about 18% by fiscal year 2028, its managing director told Reuters.

The liquor maker has been expanding its premium and prestige portfolio while widening distribution beyond its core ‌markets, as India's ⁠growing ⁠base of affluent consumers splurge on higher-end spirits.

ABD also expects potential cost savings ​from the India-UK free trade pact, which will lower the tariff on ​imported bulk Scotch whiskey to 75% from 150%, supporting margins over the medium term, MD Alok Gupta said.


The company, known for its ​Officer's Choice whisky, expects margins to increase ⁠by 200 ‌basis points by the second-half of fiscal 2027, ​with further ​gains after that. Its core earnings margin stood ⁠at 12.7% in fiscal 2025.

To support growth, the company ​has already invested 5.25 billion rupees ($57.7 million)to set ​up its own bottling units and allocated an additional 1.1 billion rupees in January to expand its in-house bottling capacity.

The premium spirits segment has been a key growth driver for larger peers such as Radico Khaitan and United Spirits, indicating increasing opportunities ‌in the sector.

ABD's luxury and super-premium business under the ABD Maestro brand is expected to double sales ​in the ​fourth quarter, Gupta said.

Post-COVID, ⁠the company has also seen more socialising at home and cocktails becoming mainstream, he added. "We've launched two flavoured variants and today more ​than 30% of our (sales) volumes come from flavours."

For the December quarter, the company reported a 16% rise in profit to 664.8 million rupees, even as revenue slipped 17% due to changes in excise duties.