Som Distilleries Q2 Profit Falls 40.6% Despite Revenue Rise

Som Distilleries & Breweries Limited reported a 40.6% year-on-year fall in standalone Q2 FY27 net profit to Rs 8.32 crore, even as revenue increased 7.8% to Rs 276.96 crore for the quarter ended 30 September 2026. The board approved unaudited standalone and consolidated results with limited-review reports.

What did Som Distilleries report for Q2 FY27?

Som Distilleries reported standalone revenue of Rs 276.96 crore for Q2 FY27, compared with Rs 256.93 crore in the corresponding quarter a year earlier. The increase in revenue did not translate into higher profit, with standalone profit after tax declining to Rs 8.32 crore from Rs 14.01 crore.

Profit before tax fell to Rs 11.33 crore from Rs 18.44 crore a year earlier. Revenue was also lower than the Rs 286.30 crore reported in the preceding Q1 FY27, showing that quarterly sales eased sequentially despite the year-on-year increase.

How did the board approve the September-quarter results?

Som Distilleries approved unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026. The financial statements were accompanied by limited-review reports from the statutory auditors, rather than a full audit opinion.

The company said the results would be published in newspapers and made available on its website and the stock exchange websites. It had earlier informed NSE and BSE that its trading window would remain closed from 1 October 2026 until 48 hours after the declaration of the unaudited results.

What do the half-year and consolidated figures show?

Som Distilleries reported standalone half-year net profit of Rs 26.24 crore, against Rs 37.67 crore in the comparable period of the previous year. The Q1 FY27 standalone profit of Rs 17.92 crore and Q2 profit of Rs 8.32 crore together account for the reported half-year profit.

On a consolidated basis, Q2 revenue was Rs 276.96 crore and net profit was Rs 8 crore. Consolidated total comprehensive income was Rs 19.89 crore, including an Rs 11.83 crore bargain purchase gain recorded through other comprehensive income.

Which operations influenced the quarterly performance?

Som Distilleries disclosed a profit of Rs 15.94 crore for its potable alcohol segment and a loss of Rs 2.15 crore for the ethanol division. The ethanol loss was identified in the results summary as a factor alongside the decline in standalone Q2 profit.

The company had also reported that its ethanol operations were running at full scale in another quarterly update, where revenue was stated at Rs 192.20 crore and net loss narrowed to Rs 3.90 crore from Rs 27.90 crore. The supplied disclosures do not provide a directly comparable segment-level reconciliation between that update and the September-quarter consolidated results.

What should investors take from the result and upcoming call?

Som Distilleries delivered higher year-on-year standalone revenue but lower profitability, making the movement in costs and the ethanol business relevant to investors reviewing the quarter. The fall in profit before tax, from Rs 18.44 crore to Rs 11.33 crore, shows that the profit decline occurred before the final tax charge.

The company scheduled an earnings call for 16 November 2026 at 4:00 PM IST to discuss Q2 and H1 FY27 results. Management presentations are to be led by the Chief Operating Officer and the Whole-Time Director of Finance, followed by a question-and-answer session. Separately, the board approved the adoption of a new set of Articles of Association and had approved up to 32,12,955 convertible warrants for promoter Deepak Arora at Rs 77.81 per warrant.

Conclusion

Som Distilleries' Q2 FY27 results show a clear divergence between revenue and profit. Standalone revenue rose 7.8% year on year to Rs 276.96 crore, but net profit fell 40.6% to Rs 8.32 crore, while the ethanol division reported a Rs 2.15 crore loss.

Investors will watch management's 16 November earnings call for details on the ethanol operation, the drivers of the lower profit before tax, and the outlook for the potable alcohol business. The company has also disclosed the proposed promoter warrant issue and a new Articles of Association, both of which remain relevant corporate developments.