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Allied Blenders & Distillers has approved a ~Rs.496 crore capex plan

ICICIdirect Research 07 Aug 2026 DISCLAIMER

News: Allied Blenders & Distillers has approved a ~Rs.496 crore capex plan to expand its manufacturing capacity in Uttar Pradesh. This is apart from already ongoing Rs.110cr capex program in the same location. The company will invest ~Rs.293.5 crore to set up a 66 million bulk litres (MNBL) per annum dual-mode distillery at Moradabad, expected to be commissioned by Q1FY29, improving supply security and supporting margin expansion. Additionally, it will invest ~Rs.202 crore to expand bottling capacity from ~6 million cases to ~13 million cases per annum (ABDL’s total bottling capacity stands at ~25.8mn cases), along with refurbishment of the existing molasses distillery and acquisition of additional land, targeted for completion by Q3FY28. The projects will be funded through a mix of debt and internal accruals and are aimed at meeting rising demand while improving operational flexibility.

View: ABDL is executing a ~Rs.1,500 crore multi-year capex programme focused on strengthening backward integration, enhancing supply chain security and driving structural cost efficiencies. The company is setting up a 66 MLPA dual-mode distillery at Vizianagaram, expanding ENA capacity by 50 MLPA at Aurangabad, increasing bottling capacities in Maharashtra and Uttar Pradesh, and developing an integrated distillery-cum-bottling facility at Moradabad. These investments are expected to improve in-house manufacturing, reduce outsourcing costs, strengthen supply security and support higher operating efficiencies. Management expects the capex programme to deliver ~300bps EBITDA margin expansion by FY28, followed by an additional ~100bps improvement by FY29, while improving return ratios and creating a strong platform for long-term earnings growth.

Impact: Positive

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