Globus Spirits Limited

The main promoter and IIM-Kolkata alumni, Ajay Kumar Swarup (Managing Director of GSL), has over two decades of experience in the alcohol and distillery industry. He is ably assisted by a group of experienced personnel having wide experience in the alcohol industry. Significant presence in bulk alcohol and R&O segment GSL’s business is divided into two segments namely manufacturing and consumer segment. Manufacturing segment comprises

GSL’s business is divided into two segments namely manufacturing and consumer segment. Manufacturing segment comprises production and sale of ENA, ethanol and bottling. Consumer segment is further divided into R&O and P&A categories. R&O consists of country liquor while P&A consists of Indian-made foreign liquor (IMFL) under own and other brands. Bulk alcohol and R&O segment contributed ~94% of the company’s revenue in FY26 (PY: 95%). The bulk alcohol segment

Apart from foraying into the IMFL market of its own, GSL manufactures IMFL brands for United Spirits Limited (USL) in its Haryana and Bengal plants, and supplies ENA to large IMFL players, such as Allied Blenders and Distilleries Limited, USL, Pernod Ricard, Radico Khaitan Limited, and Beam. The company has a franchise bottling agreement with USL for the bottling of USL brands in Haryana and West Bengal. GSL also does franchise bottling for Bacardi brands from its plant in West Bengal. Since the

Bulk alcohol’s CU improved from 74% in FY25 to 80% in FY26, despite increase in capacity (owing to commencement of production of ENA at UP plant in Q4FY26). The improvement is due to higher production of ethanol due to softening of raw material prices post GOI, allowing FCI to sell surplus rice for ethanol production from February 2025 onwards. Improvement in financial performance in FY26 In FY26, GSL reported total operating income (TOI) of ~₹2703 crore registering a y-o-y growth of ~6% in FY25

In FY26, GSL reported total operating income (TOI) of ~₹2703 crore registering a y-o-y growth of ~6% in FY25 (₹2,542 crore), considering increase in revenue from consumer segment (comprising R&O and P&A segments) by ~6% and increase in revenue of manufacturing segment by ~4%. Revenue from R&O segment improved by ~3% to ~₹900 crore in FY26, considering an increase in average sales realisation by ~4% due to price hike of 4.35% taken in April 2025 in Rajasthan (its largest market for R&O segment).

ENA/ethanol by ~6% in FY26, and increase in average sales realisation of DDGS by ~26%. PBILDT per litre improved significantly from ₹2/litre in FY25 to ₹6.2/litre in FY26. GSL’s PBILDT margin improved significantly from 6.06% in FY25 to 9.64% in FY26, due to softening of raw material prices (rice and maize) from February 2025 post GOI allowing FCI to sell surplus rice for ethanol production and higher capacity utilisation

The segment’s operational performance witnessed improvement in FY25 and FY26. In FY26, revenue of P&A segment increased by ~27% to ₹164 crore against ₹129 crore in FY25, backed by an increase in sales volume from 0.90 million cases to 1.12 million cases in FY26. Although operating margin has improved from -62% in FY24 to -16% in FY25, and further to -6% in FY26, owing to increase in scale of operations. However, the segment continues to be loss making.

GSL uses grains (maize and rice) as a raw material for its production. Since grains are seasonal products and its production depends on vagaries of nature, price of which may vary depending on production. On the other side, considering limited pricin g flexibility for its final product (as most of the liquor market is controlled by government distribution channels), the company’s profitability is affected. GSL also has its own storage facility for storing raw material apart from appointing third

The organised alcohol industry is dominated by a few large players. High taxation and heavy regulation also make the industry dynamics complex. The government levies duties, such as excise duty, sales tax, license fee, state-level import and export duty, bottling fee, welfare levy, assessment fee, franchise fee, turnover tax, and surcharge, among others, which varies across states. There is a ban on all forms of direct and indirect advertising for liquor in the country, leading to market players