SOM Distilleries Q2 PAT fell 99% after Bhopal shutdown

SOM Distilleries & Breweries Limited reported profit after tax of Rs 14 lakh in Q2 FY27, down 99% year on year from Rs 19.50 crore, after a temporary Bhopal shutdown constrained output and dispatches. Total volume fell 21% to 31.68 lakh cases, while earnings before interest, tax, depreciation and amortisation margin declined to 9.54% from 15%.

Why did SOM Distilleries’ Q2 profit fall so sharply?

SOM Distilleries’ Q2 FY27 profit fell because the temporary suspension at its Bhopal facility reduced production days, constrained dispatches and lowered operating leverage. Total volume was 31.68 lakh cases, down 21% year on year, while total income declined 31% to Rs 185.9 crore. Management described the Bhopal disruption as material to both Q2 and H1 performance.

The company said lower capacity utilisation left fixed costs under-absorbed, magnifying the impact of the volume decline on profitability. It also cited elevated prices of raw materials, bottles, cans and other packaging inputs, which increased production costs and compressed gross margins. These were the stated mechanisms behind the decline in Q2 earnings.

Bhopal has installed capacity of 15.2 million beer cases and 1.8 million Indian-made foreign liquor, or IMFL, cases. SOM Distilleries’ four-location network has installed capacity of 48.2 million beer cases and 5.1 million IMFL cases, including the Uttar Pradesh facility that began commercial production in Q1 FY27. The Bhopal stoppage therefore affected a substantial manufacturing location.

How far did SOM Distilleries’ Q2 margins and earnings decline?

SOM Distilleries’ Q2 FY27 EBITDA fell 56% year on year to Rs 17.73 crore, while its EBITDA margin fell 5.46 percentage points to 9.54% from 15%. Gross profit declined to Rs 73.69 crore from Rs 110.85 crore, and gross margin decreased to 39.64% from 41.1%. The presentation linked these changes to lower volumes and input-cost pressure.

PAT was Rs 14 lakh in Q2 FY27, compared with Rs 19.50 crore in Q2 FY26, and PAT margin declined to 0.08% from 7.22%. The fall in PAT was steeper than the 31% income decline, consistent with management’s explanation of lower fixed-cost absorption and higher costs for production and packaging materials.

Beer realisation was Rs 550 per case in Q2 FY27, down 9.40% from Rs 607 in Q2 FY26. IMFL realisation increased 34.0% to Rs 1,254 per case from Rs 939. The higher IMFL realisation did not offset lower beer realisation because beer accounted for 93.18% of H1 FY27 revenue.

What does SOM Distilleries’ H1 performance show about the disruption?

SOM Distilleries’ H1 FY27 total income was Rs 454.7 crore, down 43% from Rs 800.1 crore in H1 FY26. Gross profit fell 50.0% to Rs 149.7 crore from Rs 300.0 crore, while EBITDA declined 71% to Rs 32.91 crore from Rs 112.5 crore. EBITDA margin was 7.24%, compared with 14.07% a year earlier.

H1 FY27 PAT was Rs 1.7 crore, down 97% from Rs 61.56 crore in H1 FY26, and PAT margin was 0.4% versus 7.7%. The presentation said the temporary Bhopal suspension resulted in lost production days and constrained dispatches, while lower utilisation and higher input costs intensified the earnings effect.

Beer volume in H1 FY27 was 76.67 lakh cases, down 36% year on year, while IMFL volume was 0.79 lakh cases, down 90%. Total H1 volume fell 39% to 77.47 lakh cases. Beer represented 98.97% of total volume and 93.18% of revenue, making the beer-volume shortfall central to the H1 decline.

Has SOM Distilleries restarted Bhopal production and dispatches?

SOM Distilleries said operations, production and dispatches at Bhopal have recommenced. Management said the restart marks a transition from operational disruption to rebuilding volumes, restoring market supply and improving capacity utilisation. It added that performance in coming quarters remains subject to market demand and normal operating conditions.

Management expects market-share gains in Madhya Pradesh during the remaining part of the year, which is an outlook rather than a reported result. Its stated priorities are to ramp up Bhopal production and dispatches, improve utilisation across locations and manage input-cost pressure. The presentation does not provide a numerical volume, revenue or margin target for the restart.

The Uttar Pradesh brewery added 10 million beer cases of capacity when commercial production began in Q1 FY27. Management also said a rebound in Karnataka and Odisha helped cushion Bhopal’s Q2 impact, and identified improving business conditions in Karnataka and recovery in Odisha as support for volume normalisation.

What financial and operating factors should investors watch next?

SOM Distilleries’ gross debt-to-equity ratio rose to 0.44 times in September 2026 from 0.30 times in March 2026, after gross debt increased by Rs 100 crore during Q2. The company said the beer plant at the Uttar Pradesh facility is fully capitalised, but the presentation does not provide a detailed breakdown of the Q2 debt increase.

The main operating measures are Bhopal’s output and dispatch ramp-up, and utilisation at Bhopal, Hassan, Odisha and Uttar Pradesh. Hassan has capacity of 14.0 million beer cases and 2.7 million IMFL cases, while Odisha has capacity of 9.0 million beer cases and 0.6 million IMFL cases. Higher utilisation would address the fixed-cost under-absorption cited for H1 FY27, although management gave no utilisation target.

Management’s plan includes improving procurement, packaging-cost discipline, product mix and working capital. Its portfolio priorities include Hunter, Power Cool and Blackfort in core beer, Woodpecker, Sunny Beaches and Legend in differentiated beer, and Mahavat in mid-premium IMFL. These are execution priorities disclosed by management, not sales or profit forecasts.

Conclusion

SOM Distilleries’ Q2 and H1 FY27 results show that the Bhopal shutdown reduced production, dispatches and capacity utilisation, while higher raw-material and packaging costs compounded margin pressure. Q2 income fell 31% to Rs 185.9 crore, EBITDA margin declined to 9.54%, and PAT fell to Rs 14 lakh from Rs 19.50 crore a year earlier.

The next disclosure to watch is whether resumed Bhopal operations translate into higher volumes and utilisation during the rest of FY27. Management plans to ramp up Bhopal, progressively scale the 10-million-case Uttar Pradesh brewery, seek market-share gains in Madhya Pradesh and manage input costs, while gross debt rose by Rs 100 crore during Q2.