Globus Spirits Limited has informed the Exchange about Transcript
GLOBUSSPR · price
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Globus Spirits reported Q4 FY26 earnings with management highlighting structural improvements across the business. Manufacturing segment achieved 80% capacity utilization with EBITDA of INR8.3/liter in Q4, though Q4 volumes were temporarily impacted by a strategic shift from ethanol to ENA in Bihar/Jharkhand and a one-time inventory buildup due to extended state permissions. The company started ENA exports (3.7 million liters in Q4) capitalizing on global arbitrage. In the consumer business, Prestige & Above (P&A) segment delivered strong underlying growth of 58% YoY (excluding Delhi disruption), with revenue up 27% to INR164 crores and volumes crossing 1 million cases milestone. Regulars segment revenue grew 2% YoY to INR224 crores in Q4, though management cited deliberate portfolio wind-down in West Bengal and Haryana as near-term headwinds. The CFO announced a significant refinancing: annual debt outflow will drop from INR67 crores to INR14 crores in FY27, unlocking INR53 crores of liquidity. The company abandoned its planned equity fundraise, citing stronger internal cash flows and improved debt terms. Management reiterated FY29 targets including 50% growth for P&A business.
The refinancing significantly de-risks the balance sheet, with interest coverage doubling to 3.14x and ROE tripling. While near-term volume pressures persist in manufacturing due to product mix shift and P&A losses widened to INR5 crores in Q4 (including one-time label registration costs), the structural growth story remains intact with P&A volumes exceeding 1 million cases and strong underlying momentum in core markets. Investors should monitor Q1 liquidation of Q4 inventory buildup and UP market expansion.