Som Distilleries Expects Margin Hit Ahead After Weak Q4 Results
Companies

Som Distilleries Expects Margin Hit Ahead After Weak Q4 Results

Karnataka Proposes Price, Strength-Based Alcohol Tax Overha

The company expects to drive future growth via share gains in core markets and by setting up local manufacturing bases or entering with bottling arrangements

After the company posted weak quarter results, the management of Som Distilleries and Breweries said that cost pressures are expected to affect the margins this year on account of the global crisis. The company has flagged the rise in prices of key raw materials and packaging materials during the quarter.

“We expect cost pressures to affect the margins this year on account of the global crisis. The company’s volumes during the period were significantly impacted by the temporary licence-related disruption at its Bhopal facility, coupled with continued weakness in market demand across Karnataka, one of the company’s key operating regions,” JK Arora, Chairman and Managing Director, Som Distilleries and Breweries said in the investor presentation.

The company added that it continues to focus on strengthening its manufacturing footprint and growth pipeline. The new brewery project in Uttar Pradesh is progressing as per schedule, with trial production runs currently underway. The project is expected to enhance production capacity, improve regional market access and support the company’s long-term growth strategy. Commercial operations are expected to commence upon successful completion of the trial phase.

The company posted a consolidated net loss of Rs 56.69 crore during the fourth quarter of the financial year 2026, as compared to a net profit of Rs 23.73 crore during the same period of the previous financial year. Revenue from operations, including state excise duties, also dipped to Rs 458.2 crore in Q4FY26 from Rs 682.75 crore in Q4FY25.

Beer accounted for 92.5 per cent of total volumes and 84.70 per cent of the revenue during FY26. Price realisation for beer during FY26 was Rs. 556 and IMFL was Rs 963 and blended realisation at Rs 608.

Earlier, Som Group entered India’s regular (mid-premium) whisky segment with the introduction of Mahavat Whisky, priced in the Rs 1,000 to Rs 1,100 range. The company noted that the premium positioning aims to disrupt the competitive whisky category and strengthen its presence in the premium alcobev space.

The company expects to drive future growth via share gains in core markets and by replicating the success in by setting up local manufacturing bases or entering with bottling arrangements. It added that Uttar Pradesh is expected to be one of the core markets of the company in the medium term.

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