DBO country-liquor revenue jumps 269%, EBIT margin falls

Dhampur Bio Organics Ltd. reported country-liquor revenue of Rs 107.81 crore in Q2FY27, up 268.7% year on year, while its earnings before interest and tax (EBIT) margin was 3.37%, compared with 16.07% in the segment-overview table for Q2FY26. Sales cases and net-of-excise realisation both increased.

How quickly did DBO’s country-liquor revenue grow?

DBO’s country-liquor revenue nearly quadrupled to Rs 107.81 crore in Q2FY27 from Rs 29.24 crore in Q2FY26, a 268.7% year-on-year increase. The presentation says Q2FY27 country-liquor sales, measured net of excise duty, increased mainly because of higher volume. The segment added Rs 78.57 crore of revenue over the corresponding quarter.

The increase continued through the first half of the financial year. Country-liquor revenue reached Rs 211.22 crore in H1 FY27, compared with Rs 57.42 crore in H1 FY26, representing 267.9% growth. This was the fastest revenue growth among DBO’s reported segments in both Q2FY27 and H1 FY27, compared with Q2 growth of 12.7% for Sugar and 9.3% for Biofuel & Spirits.

Why did DBO’s country-liquor EBIT margin decline?

DBO’s country-liquor EBIT margin was 3.37% in Q2FY27, down 1,271 basis points from 16.07% in Q2FY26 in the segment-overview table. A basis point is one-hundredth of a percentage point. Segment EBIT declined 22.8% to Rs 3.6 crore from Rs 4.7 crore even as revenue increased by 268.7%.

The half-year comparison showed the same divergence between sales and profitability. H1 FY27 country-liquor EBIT was Rs 7.1 crore, down 21.6% from Rs 9.0 crore in H1 FY26, while revenue rose to Rs 211.2 crore from Rs 57.4 crore. EBIT margin declined to 3.35% from 15.73%, a fall of 1,237 basis points.

The supplied presentation contains two Q2FY26 country-liquor margin figures. Its segment-highlights page lists 11.80%, while its segment-overview table lists 16.07% and calculates a 1,271-basis-point year-on-year decline to 3.37% in Q2FY27. DBO does not provide a reconciliation for the two earlier-period margin figures, although both pages show a 3.37% Q2FY27 margin.

What do country-liquor volumes and realisation show?

DBO sold 15,50,689 country-liquor cases in Q2FY27, up from 11,61,538 cases in Q2FY26. Average realisation, net of excise duty, increased to Rs 335.48 per case from Rs 280.73 per case. The reported increase in both cases sold and realisation accompanied Q2FY27 revenue of Rs 107.81 crore.

For H1 FY27, country-liquor sales were 31,23,472 cases, compared with 22,86,518 cases in H1 FY26. Average net-of-excise realisation was Rs 314.60 per case, up from Rs 279.90 per case. The H1 FY27 realisation was lower than the Q2FY27 level of Rs 335.48 per case, while first-half case sales were more than double the quarterly total.

DBO identifies both country-liquor revenue and average realisation as net of excise duty. The company also reports Q2FY27 consolidated revenue from operations, net of excise, at Rs 665.5 crore. This common net-of-excise presentation allows the country-liquor revenue figure of Rs 107.81 crore to be compared with the company’s reported quarterly revenue measure.

How did country liquor compare with DBO’s other segments?

Country liquor had the highest Q2FY27 revenue growth rate among DBO’s three reported segments at 268.7%, but it was the only segment where EBIT declined year on year. Sugar revenue rose to Rs 468.7 crore from Rs 415.9 crore, while Sugar EBIT increased to Rs 47.6 crore from Rs 9.6 crore. Sugar’s EBIT margin increased to 10.15% from 2.31%.

Biofuel & Spirits revenue increased to Rs 104.4 crore in Q2FY27 from Rs 95.5 crore in Q2FY26. Its EBIT turned positive at Rs 5.6 crore from a loss of Rs 4.4 crore, and its EBIT margin moved to 5.32% from negative 4.6%. Country-liquor revenue of Rs 107.8 crore was slightly above Biofuel & Spirits revenue, but country-liquor EBIT of Rs 3.6 crore was lower than Biofuel & Spirits EBIT of Rs 5.6 crore.

At the company level, DBO reported revenue from operations of Rs 665.5 crore in Q2FY27, up 24% from Rs 537.3 crore in Q2FY26. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to Rs 60.0 crore from Rs 13.0 crore, and EBITDA margin rose to 9.02% from 2.41%. Those company-level movements occurred while country-liquor segment EBIT and margin declined.

What did DBO report about its financial position?

DBO reported long-term loans of Rs 111 crore as of September 30, 2026, compared with Rs 286 crore as of September 30, 2025. The company said it repaid Rs 85.84 crore of long-term loans during Q2FY27 and availed a fresh term loan of Rs 14.27 crore. Its long-term debt-to-equity ratio was 0.10 times, against 0.29 times a year earlier.

Net working capital was Rs 69 crore as of September 30, 2026, down from Rs 837 crore a year earlier. DBO also reported surplus funds of Rs 116.4 crore, including Rs 90 crore in fixed deposits and bonds. The presentation states that Care Ratings assigned long-term and short-term ratings of BBB+ stable and A2, respectively.

Conclusion

DBO’s country-liquor segment recorded sharply higher revenue in Q2FY27 and H1 FY27 as both case sales and net-of-excise realisation increased. Yet this sales growth did not translate into higher segment profitability: Q2FY27 EBIT declined to Rs 3.6 crore and the reported margin was 3.37%, while Sugar and Biofuel & Spirits each reported higher EBIT than a year earlier.

The next reported results will show whether country-liquor EBIT can rise alongside volume and realisation growth. A continuing disclosure issue is the difference between the 11.80% and 16.07% Q2FY26 country-liquor EBIT margins shown on separate presentation pages; DBO disclosed no reconciliation or country-liquor margin target in the supplied material.