Allied Blenders & Distillers Ltd

- Allied Blenders & Distillers (ABD) plans to fund a part of its capex for the current financial year through borrowing. - Alok Gupta mentioned they will need to borrow the balance capex for FY '26 but will keep borrowings well within agreed internal key ratios. - No specifics were provided on any new equity fundraising. - Net debt increased by Rs. 127 crores due to capex in H1 FY '26, with the average cost of borrowing reducing to 8.2%. - ABD is managing leverage within guidelines even during the peak capex phase and has had two credit rating upgrades recently. - Dividend payout decisions for the next year have not been finalized yet; current payout is around 50%. In summary, ABD is planning some additional borrowing for capex in FY '26 but no announced plans for equity fundraising at this time.

- Completed Rs. 115 crore investment in a PET bottle manufacturing facility in Rangapur, Telangana, operational from Q2 FY '26, producing 600 million bottles annually. - Single malt distillery in Rangapur, Telangana and ENA distillation capacity expansion in Aurangabad, Maharashtra are ongoing, expected to be operational in Q4 FY '26 and Q4 FY '27 respectively. - Total capex program of approximately Rs. 527 crore: 25% spent last year, 60% planned for current financial year, and 15% in next financial year. - Capex funded partly through borrowing while keeping leverage ratios within internal guidelines. - New PET facility is EBITDA-accretive, improves gross margins through backward integration, supply chain efficiency, and packaging cost savings, supporting margin expansion and sustainability goals. - Operating cash flow strong (Rs. 147 crores in H1 FY '26) despite peak capex phase.

- ABD Maestro currently has an annual run rate (ARR) of about Rs. 40 crores and is growing month-on-month, expected to expand distribution domestically and globally in H2 FY '26. - ICONiQ White has achieved nearly 5 million cases in H1 FY '26 and is on track to reach close to 10 million cases annualized volume within the year. - Prestige & Above (P&A) category continues growing strongly, with an 8.3% quarterly and 28.8% year-on-year volume growth, increasing its share to 47.1% of total volumes. - International market expanded from 14 to 30 countries and targets 35 countries by Q4 FY '26; aims to build a 1 million case business in Africa by FY '28 with international contribution expected to rise from 8% to 12%-15% of total revenue with ABDM portfolio roll-out. - Luxury brand portfolio focused on continuous product development and distribution expansion domestically and in travel retail, driving 4x growth in brands like Zoya Gin since April 2025. - Overall sales growth is supported by premiumization strategy, new product launches, and market share gains across segments.

- ABD's Prestige & Above (P&A) segment showing strong growth with 8.3% QoQ and 28.8% YoY volume increase, expanding P&A salience to 47.1% from 39.7% in Q2 FY '25, indicating premiumization driving earnings growth. - ICONiQ White doubling volume organically and increasing market share, signaling robust top-line and profitability growth for the brand. - ABD Maestro's ARR at Rs. 40 crores and growing month-on-month, expected to scale significantly with approx. 8x top-line impact per 1% volume, contributing to future earnings expansion. - PET bottle manufacturing facility commissioned, expected to add Rs. 30+ crores to gross margin, supporting EBITDA expansion. - Capex of ~Rs. 527 crores, largely invested by FY '26 with operational efficiencies expected from new facilities, promising margin improvement. - International business targeted to grow from 8% to 12-15% of total revenue, contributing to diversified profit sources. - Margin improvement focus via unit economics, cost optimization, and portfolio premiumization, indicating future EPS growth.

- The transcript does not explicitly mention the current or expected order book or pending orders for Allied Blenders & Distillers Limited. - However, the company highlights the growth and expansion of its ABD Maestro (ABDM) business with a current annual run rate (ARR) of about Rs. 40 crores, growing month-on-month. - ABDM is focused on expanding distribution in key Indian states, global markets, and travel retail with plans to provide detailed data by the end of the financial year. - The international business is expanding from 14 to 30 countries, including GCC, Africa, western hemisphere, Europe, and Southeast Asia, targeting significant volume growth. - The company expects pipeline corrections in Telangana to normalize by Q3 FY '26, which may impact future orders and operations positively.