Som Distilleries: Q2 dip, but eyes strong H2 with new launches and expansion

Som Distilleries & Breweries Limited reported a total income of INR 2,700 million for Q2 FY26, a 7.2% year-on-year decrease. However, EBITDA grew by 15.1% to INR 405 million, achieving a 15% margin, up from 12.1% in the same quarter last year. Net profit stood at INR 195 million with a 7.2% margin. For the first half of FY26, total income was INR 8,001 million, with a strong EBITDA margin of 14%, a 12.5% growth year-on-year. The company aims for an additional INR 800 crores in revenue for the remaining six months of FY26.

Beer volume performance was 3.6 million cases, down approximately 19%, mainly due to taxation issues and a slumping beer industry in Karnataka. The company is confident in a recovery, projecting better performance in Q3 and Q4, particularly from Odisha and Karnataka, aided by the successful launch of "Sunny Beaches" beer. IMFL sales reached 410,000 cases in Q2, boosted by legacy brands and the recent rollout of "Mahavat" in Madhya Pradesh and Delhi. IMFL currently contributes 11% to revenue, with aspirations to reach 15% within 2-3 years.

The Phase-1 greenfield project in Farrukhabad, Uttar Pradesh, is on track for completion by FY27, with the UP plant expected to be operational by June 2026. This expansion, involving an INR 350 crores investment, is anticipated to significantly boost revenue by enhancing availability in UP and neighboring states. The company also plans to introduce a single malt segment and focus on premiumization to drive higher margins.