Global disruptions cost Indian spirits maker ₹53 crore in H1

Allied Blenders and Distillers Limited disclosed that global supply chain disruptions reduced H1 FY27 EBITDA by an estimated ₹53 crore, representing a material headwind to reported profitability even as underlying operational growth accelerated. The disruption masked stronger momentum in the company's core business: excluding the impact, like-for-like EBITDA growth would have reached 27.1% year-on-year rather than the reported 5.8%, signaling significant pent-up margin expansion potential. Management did not specify which input materials, geographies or cost mechanisms drove the ₹53 crore drag, creating ambiguity around whether the disruption is temporary or structural.

In response to these vulnerabilities, Allied Blenders is executing a multi-year, multi-facility capital program worth over ₹900 crore to internalize critical procurement and manufacturing functions. The company commissioned a captive malt distillery in Telangana in October 2026 and launched a bottling facility in Uttar Pradesh the same month, with additional projects underway in Maharashtra. These initiatives are projected to deliver 300 basis points of EBITDA margin improvement by FY28 and a further 150 basis points in FY29, substantially reducing dependence on external sourcing and logistics partners.

For supply chain professionals, this case illustrates both the immediate cost of disruption and the strategic imperative to invest in supply chain resilience. While the company's segment performance remained solid (Mass Premium volumes grew 15.5%, Prestige & Above maintained ₹1,339 per-case realisation), the unquantified nature of the disruption and its magnitude relative to reported earnings underscore the need for more granular visibility into procurement bottlenecks, supplier availability and cost pass-through mechanisms.