New Delhi: Globus Spirits Ltd on Tuesday said its December quarter performance marked a structural improvement in margins, supported by lower grain prices and a steady ramp-up in its branded consumer business, even as regulatory disruptions in Delhi weighed on reported numbers.
Addressing analysts after announcing Q3 and nine-month FY26 results, the company’s management said overall gross margins expanded around 150 basis points sequentially and nearly 500 basis points year-on-year, with no one-off gains involved.
The manufacturing business — comprising extra neutral alcohol (ENA) and ethanol — clocked sales of 52.25 million litres during the quarter, with capacity utilisation of 86%, slightly above the guided 80–85% band. EBITDA margins stood at ₹7.5 per litre for the quarter and ₹5.76 per litre for the nine-month period, in line with the company’s full-year guidance of ₹5–7 per litre.
“Lower raw material costs and a rising share of consumer revenues are driving a structural uplift in margins,” joint managing director Shekhar Swarup told analysts, adding that grain prices declined 15% year-on-year and 4% quarter-on-quarter during Q3.
On the consumer side, Prestige & Above volumes rose 37% year-on-year in Q3 FY26, while revenues grew 32%, excluding Delhi. The national capital had faced excise-related disruptions over the past two quarters, but management said volumes have begun normalising and should fully recover by the end of Q4.
“We are confident of around 50% volume growth in P&A in Q4, bringing the business back on track,” said Paramjit Singh Gill, CEO of the consumer division, noting encouraging early traction in newly entered states such as Assam and planned expansion into Jharkhand by the end of the quarter.
In the regular and other (R&O) segment, volumes were largely flat year-on-year in Q3, with revenue growth of about 1%, reflecting industry trends. Rajasthan posted low single-digit growth, while Uttar Pradesh saw accelerating traction, with December sales crossing one lakh cases — a milestone management said was in line with internal expectations.
Looking ahead, Globus Spirits expects to capitalise around ₹200 crore of investments in its UP distillery in Q4, adding 100,000 litres per day of grain-based ENA capacity. The facility, which is also compatible with molasses, is expected to improve margins in both R&O and P&A portfolios in the state once stabilised.
The board has also approved an enabling resolution to raise up to ₹500 crore, though management stressed there is no immediate need for funds. Any capital raised would be used to accelerate consumer business growth, support working capital and build aged malt whisky inventory for its premium portfolio, including single malts.
Despite near-term volatility in excise policies across states, the company reiterated its medium-term vision of scaling the consumer business while maintaining manufacturing utilisation at 80–85% and EBITDA margins o f ₹5–7 per litre.