India's Allied Blenders and Distillers is betting on premium spirits to drive future growth as demand remains resilient despite inflationary pressures stemming from the Middle East war, a top executive said on Friday.
Strong double-digit growth in the Prestige & Above (P&A) portfolio and its rising share in overall sales value are underscoring the firm's strategy of prioritising profitability over mass volumes, Managing Director Alok Gupta said.
"The mix shift is structural...the bulk of our future volume and value growth will come from Premium & Above and luxury segments," he said.
The P&A portfolio, which includes brands such as Millionaire Spirits and ICONiQ White, now accounts for about 47% of volumes and 58% of sales value.
Earlier this month, peer Radico Khaitan said consumers were drinking less overall, but were opting for more expensive and refined spirits. Allied Blenders, too, has not seen any change in consumption, particularly in its higher‑margin premium and luxury segments, Gupta said.
The company, maker of the Officer's Choice whiskey brand, expects overall EBITDA margins to expand by 300 basis points by fiscal year 2028. For fiscal 2026, margins rose to 14.4% from 12.7% a year earlier.
War-linked disruptions in March and early April delayed shipments to key Middle Eastern markets and depleted distributor inventories, though demand remained intact, the MD said, adding supplies are resuming, with restocking likely by June or July.
While short-term cost pressures persist, margins could remain steady if raw material prices ease, he said.
On Thursday, Allied Blenders reported a 48% drop in net profit to 409.7 million rupees ($4.27 million), hit by a one-time charge of 3.4 million rupees.
Net export revenue rose 14.1% to 2.35 billion rupees in fiscal 2026 from 2.06 billion rupees a year earlier.
