Alcohol stock jumps 14% after Chhattisgarh distillery unit commences production

SYNOPSIS: Piccadilly Agro has started commercial production at its 200 KLPD Chhattisgarh distillery in Mahasamund, completing a key expansion project aimed at strengthening capacity, efficiency, and long-term growth.

During Thursday’s trading session, shares of a company operating primarily in two strategic business segments: Distillery and Sugar, surged nearly 14 percent on BSE, after the company announced the commencement of production at its Chhattisgarh distillery unit.

At 12:37 p.m., shares of Piccadily Agro Industries Limited were trading in the green at Rs. 636 on BSE, up by more than 12 percent, compared to its previous closing price of Rs. 565.85, with a market cap of Rs. 6,224 crores.

The stock has delivered negative returns of around 33 percent in one year, but has gained by more than 4 percent in the last one month.

What’s the News:

According to the latest disclosures filed with the stock exchanges, Piccadily Agro Industries Limited has commenced commercial production at its Chhattisgarh Unit with a capacity of 200 Kilo Litres per day (KLPD), effective from 31st December 2025.

The unit is now fully operational, marking an important step in the company’s capacity expansion plans. The start of production aligns with the company’s broader growth strategy and is expected to strengthen its manufacturing capabilities.

This Chhattisgarh facility, located at Mahasamund, has been developed as part of the company’s planned capacity expansion. During FY25, Piccadilly Agro acquired land at the location to establish a 210 KLPD distillery. Construction work at the site has progressed as scheduled, with major infrastructure in place and machinery already delivered and installed. The project has now moved into the commercial production phase.

The company chose Chhattisgarh for this greenfield expansion due to the state’s investor-friendly regulatory framework and its proximity to key raw material sources, which support efficient operations and future scalability. As operations stabilise, Piccadilly Agro plans to upgrade the unit with value-added investments.

Piccadily Agro reported a marginal growth in revenue from operations, experiencing a year-on-year increase of over 14 percent, from Rs. 185 crores in Q2 FY25 to Rs. 212 crores in Q2 FY26. Likewise, its net profit increased during the same period from Rs. 25 crores to Rs. 27 crores, representing a rise of nearly 8 percent YoY.

For Q2 FY26, the company reported total segment revenue of Rs. 234.3 crore. The distillery segment was the dominant contributor, generating Rs. 207.88 crore, which accounted for around 88.7 percent of overall revenue. This was followed by the sugar segment, which recorded revenue of Rs. 24.82 crore, contributing about 10.6 percent to the total. The other segments added Rs. 1.6 crore, making up the remaining 0.7 percent of overall revenue.

Piccadilly Agro Industries Limited operates across two distinct business segments – distillery, including alcoholic beverages (Alco-bev) and sugar. It manufactures white crystal sugar from sugar cane cultivated in the surrounding rural areas and rectified spirit, carbon dioxide gas, Extra Neutral Alcohol (ENA) from molasses/rice/wheat, malt, and PET.

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