Bira 91’s Future In Doubt? Once A Craft Beer Darling, Auditor Raises Red Flag On Company’s Survival

B9 Beverages, the maker of Bira 91 beer, is facing tough times ahead of its planned initial public offering (IPO) in 2026 as the auditor flags concerns about the company’s survival. Once known for its meteoric growth through its refreshingly modern beer flavours, the brand has reported deepening financial troubles for the year ended March 31, 2024.

Its auditor's report for fiscal 2024 reveals that the company's total accumulated losses at the time stood at Rs 21,179.75 crore, "eroding its net worth completely."

“These events and conditions indicate the existence of material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern,” the report highlighted.

According to the report, the company posted a net loss of Rs 6,449.70 crore in FY24, a steep 65% YoY rise from Rs 3,918.30 crore in FY23. Operating cash flows remained negative at Rs 422.63 crore, compared to Rs 2,413.67 crore the previous year.

Additionally, its current liabilities exceeded current assets by Rs 4,875.63 crore.

The mounting losses and governance-related concerns have also led to employee concerns and calls for leadership change. The company has yet to file its financial statements for the year ending March 2025. Despite these setbacks, the management remains confident about bouncing back.

“The management is confident that the company would be able to realise its assets and discharge its obligations as recorded in these standalone financial statements in the normal course of business,” the auditor's report said.

On the FY24 financials, Founder Ankur Jain told ET that the company’s financial position reflects its current stage of growth.

“It is not unusual for businesses at the growth stage to have current liabilities exceed current assets at this stage of the business,” the founder said.

Based on future cash flow projections, ongoing investments, capital infusions during the year, and expected operational growth, management believes the company will be able to meet its obligations and continue normal operations, as stated in the auditor's report.

Launched in 2015 and popular for its modern flavours, Bira 91 now faces serious challenges, including major job cuts. In a sign of internal unrest, over 250 employees recently wrote to the company Board and investors, demanding "leadership change" over delayed salaries and reimbursements.