Globus Spirits Ltd Q4 FY26 Earnings Analysis

- **P&A Segment:** - Q4 FY'26 expected to grow approx. 50% in volume. - FY'29 EBITDA margins projected between 15%-17%. - Mid-single-digit volume growth expected year-on-year for R&O segment. - Breakeven in P&A segment anticipated soon, likely within a few quarters. - **Manufacturing:** - Capacity: Current 330 million liters, increasing to 360 million liters with UP facility. - Utilization guidance: 80%-85% expected. - External sales expected to increase by about 15-20 million liters/year with new UP distillery. - EBITDA margin guidance for manufacturing at INR5 to INR7 per liter. - **State-Specific Growth:** - UP market projected to reach 5 million cases by FY'29, implying ~5% market share. - UP growing faster than mid-single-digit volume growth due to low base. - Rajasthan R&O volume growth projected at 2% year-on-year. - Delhi volumes expected to normalize by end of Q4 FY'26. - **Fundraising:** - QIP up to INR 500 crores to support faster consumer business growth and inventory buildup.

- **P&A Business EBITDA Margin:** Expected to reach 15%-17% by FY'29, aligning with industry best-in-class margins despite higher A&P spends. - **Consumer Business Growth:** Mid-single-digit volume growth guidance for FY'27 and FY'28; aggressive growth in new states like UP with potential for faster expansion due to small base. - **Manufacturing Business:** EBITDA margin guidance at INR 5-7 per liter with 80%-85% capacity utilization projected in FY'27; capacity expansion expected to support growth. - **Volume Growth:** Sharp volume growth anticipated in Q4; UP market projected at 5 million cases by FY'29, targeting about 5% market share. - **Profitability:** P&A segment close to breakeven currently, expected to achieve profitability within few quarters. - **Overall Vision:** The company aims to sustain its growth trajectory toward FY'29 vision, irrespective of QIP outcomes, focusing on accelerating consumer business growth and premiumization strategy.

- The company is adding a new distillery in Uttar Pradesh with an incremental capacity of 30 million liters, expected in FY'27. - This will increase total capacity to 360 million liters, with a targeted utilization of 80%-85%. - There are no further future capex plans mentioned beyond this new capacity expansion. - The company plans to use part of the QIP funds to increase malt whiskey inventory in maturation, supporting the growth of single malt whiskey brand DOAAB. - Fundraise via QIP is primarily aimed at growing the consumer business through working capital and inventory increases rather than large capex. - In absence of any inorganic acquisition opportunity, no major capex is planned as manufacturing capacity expansions are mostly complete.

- The company has obtained approval for a Qualified Institutional Placement (QIP) of up to INR 500 crores, serving as an enabling resolution with a 1-year timeframe. - Currently, there is no concrete plan to utilize the entire INR 500 crores; the actual requirement is expected to be lower. - The funds from the QIP would be used primarily for growing the consumer business, including working capital needs and increasing malt whiskey inventory for maturation. - There is no immediate dire need for fundraise; the QIP provides flexibility to accelerate growth and capitalize on opportunities as they arise. - Promoters have not committed to participating in the QIP as of now. - Regarding debt, the net debt currently stands at INR 570 crores, and management targets maintaining a debt-to-EBITDA ratio of 2 or less over the next few years.

The transcript from the Globus Spirits Limited Q3 FY26 conference call does not provide specific details on the current or expected order book or pending orders. Key points related to business outlook include: - The company is operating at 80%-85% capacity utilization, with new capacity coming from a distillery in Uttar Pradesh adding 15-20 million liters per year. - External sales expected to increase by about 10%, with internal consumption balanced accordingly. - Growth in Premium & Above (P&A) consumer business projected at 50% volume growth in Q4. - No explicit mention of pending orders or orderbook figures was discussed. - Focus is on both organic growth and potential inorganic acquisitions, but no concrete order backlog data was disclosed. Therefore, specific order book or pending order details are not available from the provided transcript.