Som Distilleries Eyes Major Revenue From UP To Achieve Rs 2,000 Crore Topline By FY27

Som Distilleries and Breweries Ltd. is hopeful of generating significant revenue in Uttar Pradesh to reach its FY27 revenue target amid a conducive business environment in the state. The company expects the state to contribute around Rs 400 crore in FY26 and around Rs 600 crore in FY27 to its total revenue. This will significantly aid its Rs 2,000 crore top-line target by FY27, according to the company's Managing Director, Jagdish Kumar Arora.

The leading alcoholic beverages manufacturer had announced an estimated Rs 600 crore investment in UP in March.  

“We are hoping to add at least Rs 300 to 400 crore in the first year and Rs 500 to 600 crore in the second year from UP. We have always been quoting a conservative figure. Whenever we have quoted some figures, we have already surpassed that. So, this is our conservative estimate. But as of now, we want to stick to the estimate,” Arora said, responding to a question of Rs 2,000 crore top-line guidance by FY27, in a conversation with NDTV Profit on Tuesday.

On growth prospects, he emphasised the shift toward premiumisation in the liquor industry. The company has recently launched a new product and plans to unveil an upcoming premium single malt, ‘Bheembetka.' 

“When I started my career, at that time, liquor was called Indian Made Foreign Liquor (IMFL), meaning a foreign drink made in India. That's why the terminology. Back then, putting any Indian name on a liquor brand was considered foolish. But now, the whole chemistry has changed. Indian names are being accepted not only in India but worldwide. So, premiumisation is happening with Indian identity at the forefront,” the MD said.

Arora added that the company is focused on the IMFL segment as beer sales have started to slow down due to increased taxation.

“Also, we're the only company present in both beer and liquor. In the last three years, beer saw huge growth, and we captured that potential. But now, with rising government taxes, beer growth is slowing down. So, we are on to now IMFL,” he explained.

Currently, Indian Made Foreign Liquor (IMFL) accounts for less than 10% of sales for Som Distilleries but is expected to rise to 20% by FY27, according to Arora. With liquor offering higher margins than beer, Som Distilleries expects its profitability to improve further.

In Q1FY26, Som Distilleries and Breweries reported a total income of Rs 530 crore, up 3.2% from Rs 514 crore in Q1FY25. Ebitda rose 11.1% YoY to Rs 72 crore from Rs 65 crore, with margins improving to 13.6% from 12.6%. Net profit grew 3.7% year-on-year, reaching Rs 42 crore compared to Rs 38 crore in the year-ago period. 

Shares of Som Distilleries and Breweries closed at Rs 140 apiece on the NSE, down 7.44%. In contrast, the benchmark Nifty50 index ended at 24,487.40, down 97.65 points or 0.4%.