Smallcap spirits stock zooms 50% from May low, hits record high; here's why

Shares of Allied Blenders and Distillers hit an all-time high of ₹454.10, soaring 6% in Tuesday's intra-day trade.

Allied Blenders and Distillers (ABD) share price today

 

Shares of Allied Blenders and Distillers (ABD) hit an all-time high of ₹454.10, soaring 6 per cent on the BSE in Tuesday’s intra-day trade on the back of over two-fold jump in trading volumes. In comparison, the BSE Sensex was down 0.07 per cent at 82.389 at 02:45 PM.

 

The stock price of this smallcap spirits company surpassed its previous high of ₹444.95, hit on January 3, 2025. It has zoomed 50 per cent from its previous month low of ₹302.50 touched on May 2, 2025.

 

Allied Blenders Q4FY25 performance

 

ABD’s consolidated net revenue grew 20 per cent year-on-year (YoY) to ₹920.6 crore in March 2025 quarter (Q4FY25), driven by 20.8 per cent volume growth to 8.5 million cases. Prestige & Above (P&A) sales volume grew by 32 per cent YoY to 3.6 million cases and mass premium sales volume grew by 13 per cent YoY to 4.9 million cases. 

 

The company reported its highest-ever quarterly profit after tax (PAT) at ₹79 crore in Q4FY25, against a loss of ₹2.4 crore. The company also reported its highest-ever earnings before interest, taxes, depreciation and amortisation (EBITDA) at ₹150 crore, up 141.5 per cent YoY from ₹62 crore in Q4FY24. 

 

Gross margins improved by 436 bps YoY to 43.4 per cent (improved by 61 bps QoQ) due to improved product mix, softening of input prices and supply efficiencies. This along with cost saving initiatives led to 698 bps YoY improvement in the EBIDTA margins to 14.8 per cent (277bps improvement QoQ) ahead of analyst’s expectation of around 12 per cent.

 

The strong performance in EBITDA was driven by continued strong focus on profitable state brand mix and cost optimization initiatives. The robust performance in PAT was led by strong EBITDA growth and interest cost savings, the management said.

 

Management expects EBIDTA margins to touch 15 per cent by FY28 driven by investment in backward integration (likely expansion of 300 bps in EBIDTA margins), improved mix to premium products and stable input prices.

 

India-UK FTA Agreement

 

The India-UK Free Trade Agreement is a truly significant milestone for the Indian spirits industry, opening up exciting new avenues for collaboration and growth for the sector as a whole and whisky category in particular. 

 

ABD is one of the largest importers of bulk scotch in India to benefit as lower import duty is expected to be largely margin accretive. In addition, this agreement will also benefit ABD’s Super-Premium to Luxury portfolio by making these products more accessible. The management anticipates this will offer Indian consumers greater choice and an opportunity to enjoy a wider range of high-quality spirits.

 

ICICI Securities view on Allied Blenders and Distillers

 

Analysts at ICICI Securities expect EBIDTA margins of 13.5 per cent by FY27E. However, any benefits coming in from signing of FTA with UK will incrementally add-on to the margins in the coming years.

 

ABD is focusing on expanding its premium portfolio, driving efficiencies through backward integration and increasing footprints in the domestic & international market. This will aid the company in its transformation journey of delivering consistent growth in the near to medium term. The brokerage firm has recommended a 'Buy' rating on ABD with a price target of ₹ 495, valuing stock at 43x its FY27E EPS of ₹ 11.6.

 

About Allied Blenders and Distillers 

 

Allied Blenders and Distillers Limited (ABD) is the largest domestic spirits company in India, in terms of annual sales volumes. ABD has a presence in five main flavors, i.e., whisky, brandy, rum, vodka, and gin, with ‘millionaire’ brands like Officer’s Choice Whisky, Officer’s Choice Blue Whisky, Sterling Reserve Premium Whiskies and ICONiQ White Whisky. Currently, its manufacturing network comprises 36 units, of which 9 are owned bottling units, 2 owned distilleries, and 25 non-owned manufacturing units.