Som Distilleries & Breweries Ltd Q1 FY27 Earnings Analysis

- FY '27 revenue guidance is between INR 1,400 to 1,500 crores, aiming to at least match FY '25 levels (~INR 1,420-1,430 crores). - Growth expected from Bhopal plant resuming operations, with full 9 months factored in. - UP greenfield brewery plant expected to commence commercial operations in June '26, contributing 15-20 lakh cases (~INR 120-130 crores revenue) in FY '27, with capacity of 1 crore cases/year and ramp-up over 2-3 years. - Karnataka market showing improvement post new excise policy, volume uplift anticipated as prices stabilize. - Expansion and market share growth targeted in Tamil Nadu and other new markets. - Beer volumes expected to recover after 6-7 months of Bhopal plant operation, regaining lost market share in Madhya Pradesh. - Overall volume and revenue growth driven by operational normalization, premiumization, and geographic expansion.

- FY '27 revenue guidance is INR 1,400 - 1,500 crores, aiming to at least match FY '25 levels (~INR 1,420 - 1,450 crores), assuming resolution of Bhopal license issue. - EBITDA margin guidance for FY '27 is close to 10%, with FY '28 outlook pending due to macroeconomic uncertainties and inflationary pressures. - Profitability in Q1 FY '27 expected to be better than Q4 FY '26 due to improved utilization at Hassan and Odisha plants and reduced annualized costs. - Full recovery of market share in Madhya Pradesh expected within 6-7 months post Bhopal plant resumption. - New Uttar Pradesh plant commercial operations starting in June 2026, expected to produce 15-20 lakh cases in FY '27, contributing incremental revenues (~INR 120 crores). - Growth expected from market share gains in Karnataka and new market entries like Tamil Nadu. - Long-term focus on cost optimizations, operational efficiencies, and premiumization initiatives to drive margin expansion.

- The company is progressing with the greenfield brewery project in Uttar Pradesh through its wholly owned subsidiary, Som Distilleries & Breweries Limited (SDBL). - Approximately INR250 crores have been invested towards the development of the UP plant as of FY '26. - The UP facility has commenced trial production and is expected to start commercial operations soon, with revenue potential of about 15-20 lakh cases in FY '27. - The plant's full capacity is 1 crore cases per annum, with a ramp-up over 2-3 years. - Further capex for Phase II of the UP project is anticipated, which may trigger promoter funding/warrants issuance. - The company continues investing aggressively in capacity creation but maintains a healthy balance sheet and manageable debt levels. - Focus remains on operational efficiencies, cost optimization, and premiumization to mitigate margin pressures and support growth.

- No immediate plans for new fundraising through equity or debt mentioned. - Nakul Sethi stated that warrants for new money will be issued only as and when required, with a clear end use for the funds. - Promoters are interested in increasing their shareholding but funding depends on the company’s requirements. - Any promoter capital infusion is likely linked to future phases of the UP project (Phase 2). - The company is focused on managing with existing financial resources, maintaining a comfortable gross debt-to-equity ratio of 0.30x as of FY '26. - No specific plans to raise funds currently or immediately, but future capital raising will be purpose-driven.

- Nakul Sethi mentioned they have about INR 400 crores of lines already sanctioned. - Due to the company's conservative approach, they have not utilized these sanction lines until the Bhopal plant becomes operational. - There is no mention of any pending tender participation by the company related to recent court order clarifications. - The company is focused on ensuring the Bhopal plant license issue is resolved to commence operations and unlock capital utilization. - No specific current orderbook or pending order figures beyond the sanctioned credit lines were discussed in the transcript.