Brewer targets recovery after FY26 revenue declines 14.8 per cent amid licence-related disruption at its Bhopal facility
Som Distilleries & Breweries expects revenue to recover to Rs 1,400 crore to Rs 1,500 crore in FY27, supported by the anticipated resumption of operations at its Bhopal facility and the commissioning of its new brewery in Uttar Pradesh.
The company reported a challenging FY26, with consolidated revenue declining 14.8 per cent year-on-year to Rs 1,233 crore. Profit after tax (Pat) stood at Rs 10.2 crore, while beer volumes fell 20 per cent to 187.19 lakh cases, according to their earning call.
Management attributed the decline primarily to the licence-related disruption at its Bhopal plant and weaker demand in key markets such as Karnataka and Odisha.
“We are expecting that we will have a full nine months for the Bhopal plant to operate and perform. That’s been factored into that Rs 1,400 crore to Rs 1,500 crore guidance,” said Diwakaran Suryanarayana, Chief Operating Officer, Som Distilleries & Breweries, during the company’s FY26 earnings call.
The Bhopal facility remains critical to the brewer’s recovery plans. Management indicated that the plant accounted for roughly half of the company’s volumes before operations were disrupted.
UP Plant To Support Growth
The company is also preparing to commence commercial production at its greenfield brewery in Uttar Pradesh, a project that received investments of around Rs 250 crore during FY26. “We expect that commercial production from the plant should commence from this month onwards,” said Nakul Sethi, Director-Finance and Strategy, Som Distilleries & Breweries.
According to the company, the facility is expected to contribute 15 lakh-20 lakh cases during FY27. The brewery has an installed capacity of 1 crore cases annually and is expected to strengthen the company’s presence across North India. Som Distilleries said the Indian-made foreign liquor (IMFL) business remained resilient during FY26, with volumes rising 32 per cent year-on-year to 15.03 lakh cases, partially offsetting weakness in the beer segment.
Management also pointed to improving demand trends in Karnataka following changes in the state’s excise duty structure and said newer markets such as Tamil Nadu are showing encouraging traction.
For FY27, the company expects earnings before interest, taxes, depreciation and amortisation (Ebitda) margins to recover to around 10 per cent despite continuing inflationary pressures on key inputs, including glass bottles, aluminium cans and barley.
The brewer’s near-term performance is likely to depend on the timing of the Bhopal facility’s reopening and the pace of ramp-up at its Uttar Pradesh plant, both of which are expected to play a key role in restoring growth after a difficult FY26, according to the company.
