Alcohol Stock Hits 5% Upper Circuit After AP Govt. Revives LoI for 46.5 Lakh Cases Plant

Synopsis: Shares of this company jumped after LOI revival for a 46.5 lakh case Andhra Pradesh plant, supporting capacity expansion, regional growth, and long-term business visibility.

The share of this company, which is India’s 3rd largest spirits company, known for its flagship brand Officer’s Choice, one of the world’s top-selling whiskies, gained investor traction today after plant expansion.

With a market capitalization of Rs 15,974 crore, Allied Blenders & Distillers Ltd’s share made a day high of Rs 571.10 per share, hits 5 percent upper circuit from its previous day’s close price of Rs 543.95 per share. The share of this company gave a return of 76 percent over the last year.

What Happened

The Office of the Commissioner of Distilleries and Breweries, Andhra Pradesh, has revived the company’s Letter of Intent (LOI) until September 26, 2028. The approval was granted through a government memo dated May 4, 2026, permitting the company to obtain a DM2 (MGO) licence subject to the fulfilment of prescribed conditions and payment obligations.

Following this approval, the company can establish a greenfield Indian Made Foreign Liquor bottling, manufactured in India, styled or branded like foreign liquor, a plant in Andhra Pradesh with an annual production capacity of nearly 46.5 lakh cases. The development is expected to support the company’s manufacturing expansion plans and strengthen its operational presence in the state going forward.

How Can It Impact The Company?

Capacity Expansion: The new bottling plant can significantly expand the company’s manufacturing capacity and support higher sales volumes going forward. Stronger South India Expansion: The Andhra Pradesh approval is expected to strengthen the company’s presence in South India by expanding its manufacturing base and improving regional distribution reach. This can support deeper market penetration in a key consumption-driven region.

Improved Operational Efficiency: The proposed greenfield IMFL bottling facility is likely to enhance operational efficiency over time. Local production can reduce logistics dependency, improve supply chain execution, and help optimise overall costs through better proximity to demand centres.

Better Long-Term Visibility: The Letter of Intent’s validity up to 2028 provides strong regulatory clarity for the project. This improves long-term planning visibility and supports the company’s expansion strategy with greater execution confidence and stability.

About the company

Allied Blenders and Distillers Limited (ABDL) is India’s 3rd largest spirits company, known for its flagship brand Officer’s Choice, one of the world’s top-selling whiskies. Founded in 1988 by Kishore Chhabria, the company offers a diverse portfolio, including Officer’s Choice Blue, Sterling Reserve, and Zoya Gin. They operate extensively with 36 bottling units, a distillery, and a wide distribution network across India.

Financial Highlight: Revenue from operations increased to Rs 1,003 crore in Q3 FY26 from Rs 974 crore in Q3 FY25, reflecting a 3.0 percent YoY growth. Operating margin improved to 14 percent in Q3 FY26 from 12 percent in Q3 FY25. Net profit rose to Rs 64 crore in Q3 FY26 from Rs 57 crore in Q3 FY25, up 12.3 percent YoY, while EPS increased to Rs 2.38 per share in Q3 FY26 from Rs 2.05 per share in Q3 FY25, a 16.1 percent rise.

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