Som Distilleries Q2 profit falls 99% as revenue drops 11%

Som Distilleries & Breweries Limited reported consolidated profit of Rs 14.19 lakh for the quarter ended September 30, 2026, down 99% from Rs 19.50 crore a year earlier, as revenue from operations fell 11% to Rs 425.82 crore. Som Distilleries also recorded a Rs 42.31 crore operating cash outflow over the first half.

What were Som Distilleries’ Q2 consolidated results?

Som Distilleries’ Q2 revenue and profit both declined year on year in the quarter ended September 30, 2026. Revenue from operations, including state excise duties, was Rs 425.82 crore, compared with Rs 476.36 crore in the corresponding quarter ended September 30, 2025. Total income declined to Rs 425.92 crore from Rs 476.79 crore over the same comparison.

Total expenses declined to Rs 425.76 crore in Q2 from Rs 449.34 crore a year earlier, but that reduction was less than the Rs 50.87 crore fall in total income. Profit before tax consequently declined to Rs 15.79 lakh from Rs 27.45 crore. After a tax expense of Rs 1.60 lakh, profit for the period was Rs 14.19 lakh, versus Rs 19.50 crore in Q2 of the prior year.

The sequential comparison also showed a lower September-quarter result. Revenue from operations was Rs 609.19 crore in the preceding quarter ended June 30, 2026, compared with Rs 425.82 crore in Q2. Profit for the period fell from Rs 1.56 crore in the June quarter to Rs 14.19 lakh in the September quarter.

Which costs changed in Som Distilleries’ Q2?

Som Distilleries’ largest reported expense, state excise duties, increased to Rs 240.01 crore in Q2 from Rs 206.77 crore a year earlier, even as revenue declined. The expense was, however, below the Rs 340.56 crore recorded in the preceding June 2026 quarter. Cost of materials consumed fell to Rs 127.88 crore from Rs 145.39 crore year on year.

The company reported a Rs 15.67 crore reduction in inventories of finished goods, stock-in-trade and work-in-progress in Q2, compared with a Rs 13.77 crore inventory-related charge in the prior-year quarter. This movement reduced reported expenses in the latest quarter. Other expenses also decreased to Rs 42.21 crore from Rs 58.33 crore, partly offsetting increases in several other cost lines.

Employee benefit expense rose to Rs 13.75 crore from Rs 12.01 crore, while depreciation and amortisation increased to Rs 11.72 crore from Rs 8.16 crore. Finance costs increased to Rs 5.86 crore from Rs 4.91 crore. The filing identifies alcoholic beverages as the business and does not provide separate reportable operating segments under Indian Accounting Standard 108.

Why was Som Distilleries’ Q2 earnings per share negative?

Som Distilleries reported basic and diluted earnings per share of negative Rs 0.19 in Q2 because the profit attributable to owners of the company was a loss of Rs 4.03 crore. The consolidated profit of Rs 14.19 lakh included Rs 4.17 crore attributable to non-controlling interests, according to the allocation in the results statement.

In the corresponding quarter ended September 30, 2025, profit attributable to owners was Rs 19.05 crore and non-controlling interests were allocated Rs 45.49 lakh. Basic and diluted earnings per share were Rs 0.94 in that period. The difference between group profit and the owners’ allocation is relevant because earnings per share reflects the amount attributable to equity holders of Som Distilleries.

For the six months ended September 30, 2026, consolidated profit was Rs 1.70 crore, compared with Rs 61.56 crore in the corresponding six months of 2025. Half-year revenue from operations declined to Rs 1,035.01 crore from Rs 1,360.91 crore, while profit before tax fell to Rs 2.31 crore from Rs 85.83 crore.

What does Som Distilleries’ cash flow show?

Som Distilleries used Rs 42.31 crore in operating activities during the six months ended September 30, 2026. Cash generated from operations before tax was negative Rs 35.45 crore, despite operating profit before working-capital changes of Rs 32.79 crore. For comparison, the cash flow statement reports operating cash inflow of Rs 190.90 crore for the full year ended March 31, 2026.

Working-capital changes contributed to the outflow in the first half. Trade receivables increased by Rs 13.68 crore, inventories rose by Rs 12.52 crore and other current assets increased by Rs 17.59 crore. Trade payables decreased by Rs 13.40 crore, while other current financial liabilities increased by Rs 12.40 crore, providing a partial offset.

Investing activities used Rs 31.62 crore in the six-month period, including Rs 35.58 crore spent on property, plant and equipment. Net borrowings of Rs 99.77 crore were recorded in financing activities, contributing to net financing cash inflow of Rs 86.78 crore. Cash and cash equivalents under the cash flow statement rose to Rs 30.12 crore at September 30, 2026, from Rs 17.26 crore at the start of the financial year.

How did Som Distilleries’ balance sheet change?

Som Distilleries’ consolidated borrowings increased to Rs 311.35 crore at September 30, 2026, from Rs 211.58 crore at March 31, 2026. Non-current borrowings rose to Rs 85.69 crore from Rs 30.93 crore, while current borrowings increased to Rs 225.65 crore from Rs 180.65 crore. The balance-sheet increase broadly corresponds with the Rs 99.77 crore net borrowing inflow in the half-year cash flow statement.

Consolidated total assets increased to Rs 1,534.70 crore from Rs 1,465.21 crore over the six months. Property, plant and equipment rose to Rs 885.64 crore from Rs 644.96 crore, while capital work-in-progress fell to Rs 20.73 crore from Rs 246.36 crore. Consolidated equity was Rs 820.97 crore at September 30, compared with Rs 819.27 crore at March 31.

Current assets rose to Rs 569.34 crore from Rs 511.35 crore, including inventory of Rs 194.75 crore and trade receivables of Rs 188.70 crore. Current liabilities increased to Rs 503.03 crore from Rs 481.13 crore. The filing also states that the Bhopal plant commenced operations after the reporting period after the company received its manufacturing licence.

Conclusion

Som Distilleries’ September 2026 quarter combined an 11% decline in revenue with a much sharper reduction in profit, leaving consolidated profit at Rs 14.19 lakh. The first-half figures also show lower revenue and profit alongside a Rs 42.31 crore operating cash outflow, while consolidated borrowings increased by Rs 99.77 crore over the March 2026 balance-sheet level.

The next disclosed development to watch is the commencement of operations at the Bhopal plant following the grant of its manufacturing licence. Subsequent results can show how the plant affects revenue, operating cash flow, property and equipment of Rs 885.64 crore, and borrowings of Rs 311.35 crore.