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Allied Blenders & Distillers Ltd. has received a licence from the Commissioner of Prohibition and Excise

ICICIdirect Research 16 Sep 2026 DISCLAIMER

News: Allied Blenders & Distillers Ltd. has received a licence from the Commissioner of Prohibition and Excise, Telangana, to manufacture malt spirits for potable purposes at its Rangapur facility in Telangana. The licence permits production of ~4.4mn BL of malt spirits per annum. ABDL currently sources malt spirit from third-party distillers; the in-house production capability is expected to support its raw-material requirements and improve operational efficiencies. The licence will also enable the company to produce and develop its own single malt whisky products, strengthening its premium portfolio and providing opportunities for future growth.

View: The malt distillery licence further strengthens ABDL’s backward integration strategy and reduces dependence on third-party sourcing of malt spirit. The ~4.4mn BL p.a. capacity also provides the company with the capability to develop and scale its own single malt whisky portfolio, supporting premiumisation. This forms part of the broader backward-integration programme, with Phase-I initiatives targeted to deliver ~300bps EBITDA margin improvement by FY28 and Phase-II projects expected to provide an incremental ~100bps improvement by FY29. Though near term margins may be impacted by geopolitical instability, these backward integration initiatives should drive structural cost efficiencies over the medium term ahead

Impact: Positive

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