Alcohol stock jumps 6% after its net profit increases by 90% YoY in Q3 FY26

SYNOPSIS: G M Breweries posted strong Q3 FY26 revenue and profit growth, but a sharp rise in excise duty lifted tax outgo, likely denting sentiment and triggering profit-taking after the stock’s sharp rally.

During Tuesday’s trading session, shares of a company involved in the manufacturing and marketing of alcoholic beverages surged over 6 percent to hit a record high on the stock exchanges, after reporting Q3 FY26 results with a rise in net profit by around 20 percent QoQ and 91 percent YoY.

With a market cap of Rs. 2,744 crores, shares of G M Breweries Limited surged more than 6 percent to hit a new 52-week high at Rs. 1,328 on BSE, compared to its previous closing price of Rs. 1,247.9. The stock has delivered positive returns of around 52 percent in the last one year, and has gained by over 27 percent in the last one month.

What’s the News

G M Breweries Limited announced the financial results for the third quarter of FY26 on Tuesday during market hours, as per the latest regulatory filings with the stock exchanges.

For Q3 FY26, the company reported a consolidated net revenue from operations of Rs. 808.6 crores, reflecting a sequential growth of around 13 percent QoQ compared to Rs. 717.85 crores in Q2 FY26, and a year-on-year increase of more than 25 percent from Rs. 644.2 crores recorded in Q3 FY25.

During the same period, net profit stood at Rs. 42 crores, indicating a rise of nearly 20 percent QoQ from Rs. 35 crores in Q2 FY26, and an impressive growth on a year-on-year basis by nearly 91 percent from Rs. 22 crores reported in Q3 FY25.

Further, excise duty and related taxes rose sharply to Rs. 606.5 crore in Q3 FY26, compared with Rs. 478.35 crore a year ago, reflecting a year-on-year increase of nearly 27 percent, broadly in line with higher revenue from operations. So, if we adjust excise duty, VAT, and TCS, the net revenue will stand at Rs. 202.14 crores, marking a growth of nearly 22 percent from Rs. 165.86 crores in Q3 FY25.

This sharp rise in tax outgo, despite healthy topline growth, may have weighed on investor sentiment and could be one of the reasons behind today’s fall in share prices after the stock’s steep rally.

GM Breweries Limited is engaged in the business of manufacturing and marketing of alcoholic beverages such as country liquor (CL) and indian-made foreign liquor (IMFL).

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