Globus Spirits' profit increases by 13% in June quarter

Mumbai, 4 August 2025: Globus Spirits Ltd (NSE: GLOBUSSPR, BSE: 533104) reported a steady financial and operational performance for the quarter ended 30 June 2025 (Q1FY26), with profit after tax (PAT) climbing 13% year-on-year (YoY) to ₹185 crore. The company’s EBITDA rose sharply by 40% quarter-on-quarter (QoQ) to ₹60 crore, reflecting higher capacity utilisation, stronger volumes, and improved operational efficiency. Revenue also saw a notable uptick, rising 7% QoQ and 9% YoY to ₹699 crore, backed by momentum in both consumer and manufacturing segments.

Net Profit Grows 13% YoY to ₹185 Cr in Q1FY26, EBITDA Up 40% QoQ at ₹60 Cr Amid Margin Expansion

Globus Spirits delivered a strong start to FY26, with revenue reaching ₹699 crore, compared to ₹654.5 crore in Q4FY25 and ₹642.1 crore in Q1FY25. This 7% sequential and 9% annual rise in revenue was complemented by a healthy improvement in operating profit. EBITDA rose to ₹60 crore in Q1FY26 from ₹42.8 crore in Q4FY25, marking a 40% QoQ growth, while growing 20% YoY over ₹50.1 crore in the same period last year.

EBITDA margins improved to 9%, from 7% in Q4FY25 and 8% in Q1FY25. The company also reduced net debt by ₹40 crore during the quarter, reflecting improving cash flows and operational discipline.

Consumer Business Revenue Jumps as Prestige & Above Segment Narrows Losses to ₹1.2 Cr; Nears Breakeven in Key Markets

Within the consumer segment, the Prestige & Above (P&A) category saw a 50% YoY rise in revenue to ₹40.7 crore, with volumes growing by 51% YoY to 0.29 million cases. EBITDA losses in this segment reduced significantly from ₹3.5 crore to ₹1.2 crore, with Delhi and Uttar Pradesh nearing breakeven. The performance was temporarily impacted by a policy shift in Delhi in June, but the underlying trend remained positive.

The Regular & Others (R&O) segment also maintained momentum with a 10% YoY increase in revenue to ₹232.5 crore. Volumes in this segment rose marginally by 1% YoY to 3.98 million cases, while EBITDA rose 9% YoY to ₹39 crore, aided by a 4.35% price hike in Rajasthan and market entry into Uttar Pradesh. This helped sustain EBITDA margins at 17%.

Manufacturing Revenue Rises to ₹425.8 Cr, EBITDA Doubles YoY to ₹22.2 Cr on Better Utilisation and Bulk Sales Growth

The manufacturing business reported revenue of ₹425.8 crore, a 6% YoY increase. EBITDA from this segment doubled to ₹22.2 crore, supported by better margins. Bulk alcohol volumes rose by 11% YoY to 54.52 million litres, while capacity utilisation improved from 72% to 81%. EBITDA per litre rose to ₹6, largely due to lower maize and rice input costs.

Strategic Highlights: UP Expansion, Beer Launch and Corn Oil Production Set to Unlock New Revenue Streams

The company has embarked on several strategic initiatives:

• Uttar Pradesh Expansion: Distillery construction is progressing at Lakhimpur Kheri, with completion targeted by Q3FY26. Bottling has already commenced.
• CARIB® Beer Launch: Commercial production began in May 2025 under a joint venture with ANSA McAL, with a 500 ml strong beer now available in Uttar Pradesh.
• Brand Portfolio Growth: The company now has 12 brands across whisky, vodka, gin, rum, and beer, expanding aggressively in premium categories across nine states.
• Corn Oil Venture: Production has commenced in West Bengal. Facilities in Bihar and Jharkhand are next, with the project aimed at generating ₹20 crore in additional annual revenue.

Financial Ratios Show Healthy Liquidity, Profitability and Cash Return Improvement

Globus Spirits demonstrated improvement in key financial ratios for Q1FY26. The current ratio improved to 1.36 from 0.96, indicating stronger short-term liquidity. The debt service coverage ratio remained stable at 1.55, while annualised cash return on equity rose to 14% from 11% in FY25. The consumer business contributed 39% to overall revenue, consistent with previous quarters, reflecting the steady performance of this vertical.

Management Confident About Profitability in Premium Segment, Eyes Sustained Momentum Across Verticals

Commenting on the results, Joint Managing Director Shekhar Swarup said, “Our Prestige & Above segment has significantly narrowed losses and is on track for profitability. With expanded capacity, entry into UP, and strategic cost controls, we are confident of sustaining momentum across both consumer and manufacturing verticals.”

Globus Spirits Share Price Slips Slightly by 0.68% to ₹1,247 Despite Strong Q1 Earnings

Despite a healthy financial performance, Globus Spirits’ share price fell by ₹8.60 (0.68%) to close at ₹1,247 on 4 August 2025, as per NSE data. The stock opened at ₹1,267.10 and touched an intraday high of ₹1,271.90 before slipping to a low of ₹1,200. The movement could reflect profit booking or muted market sentiment, despite improved profitability and segmental performance. The stock’s 52-week high is ₹1,369.75, while the low stands at ₹751. The company’s market capitalisation is ₹3,610 crore, with a price-to-earnings (P/E) ratio of 154.93 and a dividend yield of 0.22%.

Globus Spirits: Leading Player in India’s Liquor Industry with Over 300 Million Litres of Annual Capacity

Globus Spirits Ltd is one of India’s most established integrated players in the alcoholic beverages sector, with a strong presence across consumer, manufacturing, and institutional markets. Listed on both NSE and BSE, the company operates six distilleries across North and East India, with a total production capacity of more than 300 million litres per annum. Its growing portfolio includes popular premium and semi-premium brands such as Brothers & Co., TERAI, SNOSKI, and Mountain Oak, with operations in nine states and aggressive expansion plans into the premium and luxury segments.

REF:https://nsearchives.nseindia.com/corporate/GLOBUSSPR_04082025144705_Covering_Letter_With_Investor_Presentation_sd.pdf

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