Allied Blenders’ Malt Facility On Track For Fourth Quarter, Says MD Alok Gupta
As the Indian liquor industry continues to evolve, Allied Blenders And Distillers Ltd. remains focused on expanding its operations and improving its financial performance. In an exclusive interview with NDTV Profit, the company’s Managing Director Alok Gupta shared updates on the firm’s plans for Telangana and the current status of overdue payments.
Overdue Payments: Status Quo for Now
When asked about the overdue payments, Gupta said that the payments for supply of the month are being released on time, but there has been little movement on the overdue front. ‘However, we’ve seen little movement on the overdue front,’ he stated.
This lack of progress on overdue payments may be a concern for investors, but Gupta remains optimistic about the firm’s prospects. ‘We are hopeful that in the panchayat elections, the subject of price increase also comes to attention,’ he added.
Plans in Telangana: Malt Facility and PET Bottle Production
In Telangana, Allied Blenders is setting up a facility to manufacture Polyethylene Terephthalate (PET) bottles, which will be operational next month with a capacity to produce 600 bottles per year. Additionally, the company is also establishing a malt facility in the state, which is expected to be operational in the fourth quarter of the current fiscal.
‘The malt facility, which is one of India’s first single-malt distilleries, will come alive in the fourth quarter of the current financial year,’ Gupta said.
Free-Trade Agreement with the UK: A Potential Boost
Gupta also spoke about the company’s expectations from the free-trade agreement with the United Kingdom. He believes that the agreement could lead to a 200 basis point jump in margins once the new duty structure is implemented.
However, Gupta clarified that despite forecasting some positive benefits in the fourth quarter, the company’s capex guidance for fiscal 2026 will not change, as the timeline for the FTA implementation is not yet certain.
Q1 Results: A Strong Start
Allied Blenders And Distillers Ltd. has already reported its Q1 results, which showed a notable rise in its year-on-year consolidated net profit to Rs 57 crore, a 405% increase from the same period last year. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a 51% uptick to Rs 112 crore.
Revenue grew 21.8% to Rs 922.86 crore, while the net profit margin expanded to 12.1% from 9.8%. The company’s EBITDA margin also improved to 12.1% from 9.8%.
Allied Blenders And Distillers Ltd.’s strong Q1 results and its plans for expansion in Telangana are likely to have a positive impact on the company’s stock price. Investors will be keeping a close eye on the company’s progress in the coming quarters.