Allied Blenders and Distillers shares hit a 5% lower circuit on BSE at ₹527.85 per share following the release of Q4FY26 results after market hours on Friday. According to reports from Business Standard, the selling pressure came after the company reported disappointing quarterly financial results. The stock's performance contrasted sharply with the broader market, as the BSE Sensex was down only 0.66% at 74,743.31 during the same trading session.
In the March quarter (Q4FY26), Allied Blenders and Distillers reported a significant decline in profitability with net profit falling 52.1% to ₹38 crore compared to ₹79 crore in the same quarter last year. As reported by Business Standard, this substantial profit decline occurred despite the company achieving revenue growth of 9.1% year-on-year, with revenue from operations reaching ₹1,020 crore compared to ₹935 crore in Q4FY25. The revenue growth demonstrates the company's ability to maintain top-line expansion despite the profitability challenges.
Despite the quarterly challenges, brokerages remain optimistic about the company's long-term prospects. Choice Institutional Equities has maintained a 'Buy' rating with an upgraded target price of ₹690 from ₹660, based on a discounted cash flow approach. According to Business Standard, the brokerage expects revenue, EBITDA, and profit after tax CAGRs of 17.3%, 27.2%, and 43% respectively over FY26-29. JM Financial has also maintained a 'Buy' rating with a revised target price of ₹650 from ₹610, based on 40x FY28 EPS, after trimming FY27 estimates by approximately 7% and upgrading FY28 EPS by approximately 7%.
Looking ahead, brokerages anticipate significant margin expansion driven by multiple factors. As reported by Business Standard, Choice Institutional Equities expects volumes and realisations to grow at CAGRs of 12% and 6% respectively over FY26-29, supported by the UK Free Trade Agreement, new malt plant, and expansion of extra neutral alcohol (ENA) and bottling capacity. JM Financial notes that management has raised its FY28 EBITDA margin guidance by 100 bps to 18%, with benefits expected from the UK Free Trade Agreement, likely price hikes in Telangana, and backward integration projects.
