Associated Alcohols Proprietary IMFL Revenue Rises 39% in Q2

Associated Alcohols’ proprietary Indian-made foreign liquor revenue rose 39% year on year to Rs 57.7 crore in Q2FY27, while IMFL licensing revenue fell 43% to Rs 16.3 crore. Proprietary IMFL’s share of reported alcohol EBITDA contribution increased to 34% from 24%, although total alcohol EBITDA declined to Rs 16.8 crore.

Why did Associated Alcohols’ IMFL mix change in Q2FY27?

Associated Alcohols’ reported IMFL mix moved toward proprietary products because proprietary IMFL revenue increased by Rs 16.3 crore while licensing revenue declined by Rs 12.4 crore in Q2FY27. Proprietary IMFL revenue rose from Rs 41.4 crore in Q2FY26 to Rs 57.7 crore, while the licensing category decreased from Rs 28.7 crore to Rs 16.3 crore. IMFL means Indian-made foreign liquor, and the presentation reports proprietary and licensing as separate categories.

Total alcohol revenue rose 14% to Rs 195.3 crore in Q2FY27 from Rs 171.8 crore in Q2FY26. Indian-made liquor, or IML, was nearly unchanged at Rs 57.8 crore against Rs 56 crore, while extra-neutral alcohol, or ENA, increased 21% to Rs 44.8 crore. Others, which includes by-products and contract manufacturing, increased 119% to Rs 18.6 crore from Rs 8.5 crore.

Did Associated Alcohols’ proprietary IMFL volumes support revenue growth?

Associated Alcohols’ proprietary IMFL volume rose 28% to 732,000 cases in Q2FY27 from 573,000 cases in Q2FY26, supporting the increase in revenue to Rs 57.7 crore. The category added 159,000 cases year on year. In contrast, licensed IMFL volume declined 47% to 127,000 cases from 241,000 cases, alongside its revenue decline.

The first-half comparison showed the same divergence. Proprietary IMFL volume increased 34% to 1.524 million cases in H1FY27 from 1.133 million cases in H1FY26, while its revenue increased 49% to Rs 122.9 crore from Rs 82.7 crore. Licensed IMFL volume fell 62% to 230,000 cases from 605,000 cases, and its revenue declined 50% to Rs 29.5 crore from Rs 71.3 crore.

IML volume was broadly flat, at 903,000 cases in Q2FY27 versus 896,000 cases a year earlier, and at 2.075 million cases in H1FY27 versus 2.071 million cases in H1FY26. ENA volume rose 36% to 7.4 million litres in Q2FY27 from 5.4 million litres. H1FY27 ENA volume also rose 36%, reaching 14.7 million litres from 10.8 million litres.

How did proprietary IMFL change Associated Alcohols’ alcohol EBITDA mix?

Associated Alcohols reported proprietary IMFL at 34% of alcohol EBITDA contribution in Q2FY27, up 10 percentage points from 24% in Q2FY26. IMFL licensing’s contribution decreased to 5% from 14%. Total alcohol EBITDA was Rs 16.8 crore in Q2FY27, compared with Rs 21.2 crore a year earlier, meaning the higher proprietary share came within a lower total.

The shift was more pronounced in H1FY27, when proprietary IMFL represented 37% of alcohol EBITDA contribution compared with 24% in H1FY26. Licensing fell to 5% from 18%, while total alcohol EBITDA declined to Rs 51.3 crore from Rs 54.4 crore. The presentation says the focus remains on the proprietary IMFL category and says elevated raw-material prices weighed on margins.

The chart also shows ENA at 3% of Q2FY27 alcohol EBITDA contribution, down from 14% in Q2FY26, while others increased to 24% from 12%. It separately lists total IMFL at 35% in Q2FY27 and 37% in Q2FY26. As the chart includes total IMFL alongside proprietary and licensing labels, its displayed percentages should not be added as separate components.

What happened to Associated Alcohols’ overall Q2FY27 earnings?

Associated Alcohols reported net revenue from operations of Rs 271.6 crore in Q2FY27, up 7% from Rs 253.8 crore in Q2FY26, but EBITDA declined 26% to Rs 17.7 crore from Rs 24 crore. EBITDA margin declined to 7% from 9%. Gross revenue increased 8% to Rs 277 crore, while total operating expenses increased 10% to Rs 253.9 crore.

Profit after tax fell 43% to Rs 8 crore in Q2FY27 from Rs 14 crore, and profit-after-tax margin fell to 3% from 6%. Basic earnings per share were Rs 3.99, compared with Rs 7.69 in Q2FY26. Sequentially, net revenue declined 3% from Rs 280.9 crore in Q1FY27, while EBITDA declined 41% from Rs 29.9 crore.

For H1FY27, net revenue from operations rose 6% to Rs 552.5 crore from Rs 520.5 crore, while EBITDA fell 22% to Rs 47.6 crore and margin declined to 9% from 12%. Alcohol revenue rose to Rs 409 crore from Rs 373.8 crore, whereas ethanol revenue declined to Rs 143.5 crore from Rs 146.7 crore. The ethanol measure includes ethanol sales, by-products and incentive from the Production Linked Incentive Scheme.

What is Associated Alcohols’ next proprietary portfolio initiative?

Associated Alcohols has disclosed Arcana, a 100% agave Blanco tequila crafted in Mexico, as an entry into the tequila category. Arcana was initially launched in Madhya Pradesh at Rs 7,500, according to the presentation. The company describes the product as an expansion of its premium spirits portfolio, but it gives no revenue, volume, margin or launch-date disclosure for Arcana.

Management plans to roll out Arcana in Karnataka, Maharashtra, Haryana, Goa, Delhi and other states in the coming months. This is a stated expansion plan, rather than a reported Q2FY27 sales result. The presentation does not quantify whether Arcana contributed to the Rs 57.7 crore of proprietary IMFL revenue reported for Q2FY27.

Conclusion

Associated Alcohols’ Q2FY27 figures show a marked change in the composition of its alcohol business. Proprietary IMFL added revenue and cases, while the separately reported licensing category declined sharply in both measures. Proprietary IMFL also represented a larger share of alcohol EBITDA contribution, even as total alcohol EBITDA and company-wide EBITDA declined year on year.

The next disclosed development to watch is Arcana’s planned expansion beyond Madhya Pradesh into Karnataka, Maharashtra, Haryana, Goa, Delhi and other states in coming months. Subsequent disclosures on proprietary IMFL volume, revenue and alcohol EBITDA contribution will show whether the stated category focus continues to change the business mix.