Can Margin Recovery Spark a Rerating in Globus Spirits?

The stock is up over 23 percent year-to-date, beating most of its liquor peers. But analysts believe the real upside may be ahead. Here’s what’s working in its favor: 1. Margins are likely to bounce back FY25 was a tough year due to a spike in raw material costs, especially broken rice. This hit operating margins hard, with EBITDA falling to a five-year low. But since February 2025, broken rice prices have dropped 10 percent. As input costs ease, margins are expected to recover strongly over the next few years. 2. Entry into a massive market Globus

recently began operations in Uttar Pradesh, the largest country liquor market in India. Even a modest 7 to 8 percent market share here could translate into significant revenue growth. 3. Growing its premium product line The company has also been focusing on premium liquor brands in the IMFL (Indian Made Foreign Liquor) segment—whisky, rum, and vodka. Its operations in Delhi and UP have already broken even, and it plans to expand into two more states in FY26, including one in South India. Strong technicals and investor confidence Trading above 20, 50, and 200-day moving averages Promoter holding increased slightly in March 2025 FII and DII ownership also went up last quarter Zero promoter pledge Solid long-term growth 3-year revenue CAGR: 27.36 percent Net profit CAGR: 24.58 percent Operating profit CAGR: 12.5 percent Brokerages are optimistic, with Dolat Capital assigning a target price of Rs 1,600 per share, implying a potential 47 percent upside from current levels.