Associated Alcohols Sees Profit Pressure Despite Revenue Growth
The alcobev firm posted a 6% YoY revenue rise, but profit fell sharply by 25% as net margins contracted.
Associated Alcohols & Breweries reported mixed Q1 FY27 results. While revenue grew 6% year-on-year, profit fell by nearly a quarter, highlighting significant margin pressure.
Associated Alcohols & Breweries delivered a quarter of contrasting fortunes. While revenue climbed, profitability took a significant hit, pointing to a squeeze on margins in the first quarter of FY27.
The company's revenue for the quarter ended June 2026 came in at ₹286.3 crore, marking a 6% increase from the same period last year and a strong 18.5% sequential jump from the March quarter. However, profit after tax (PAT) fell sharply by 24.6% year-on-year to ₹17.83 crore, and also declined 24.1% from the previous quarter. This divergence pulled the net profit margin down to 6.2%, a drop of 260 basis points from Q1 FY26.
A look at the recent quarterly performance shows this margin pressure has been building, with profitability retreating from the highs seen in the middle of last fiscal year.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 286.3YoY +6% | 241.6 | 270.2 |
| Profit (₹ Cr) | 17.83YoY -25% | 23.5 | 23.65 |
| Net Profit Margin (%) | 6.2YoY -30% | 9.7 | 8.8 |
Key Points
- The company's trailing twelve-month (TTM) performance shows a net profit margin of 7.9% on revenue of ₹1,049.4 crore.
- Despite the recent earnings pressure, Associated Alcohols maintains a strong balance sheet with a low debt-to-equity ratio of 0.2 and a high return on equity of 29.15%.
- The stock has faced headwinds, down 25% over the past year, though it still trades at a significant discount to the industry average P/E.
The immediate challenge for the company is to translate its resilient top-line growth back into stronger bottom-line performance in the quarters ahead.
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(BSE)
ISIN: INE073G01016
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