Associated Alcohols & Breweries Ltd. Share Price

Associated Alcohols & Breweries Secures Additional Ethanol Allocation; Q1 FY27 Margins Compress

Associated Alcohols & Breweries has disclosed an additional allocation of 87.4 lakh litres of ethanol from Bharat Petroleum Corporation Limited (BPCL) for Q4 of the Ethanol Supply Year 2025-26, pursuant to a Supreme Court order. Key Highlights: Routine Allocation: The volume-based allocation is a standard operational event under government-mandated blending programs and does not materially impact the top-line outlook in isolation, as the company operates on a continuous supply model with no long-term backlog. Q1 FY27 Margin Pressure: While Q1 FY27 revenue stood at ₹284 crore, Net Profit declined to ₹17.8 crore (from ₹23.5 crore in Q4 FY26). Operating Profit Margin (OPM) compressed significantly to 10.63% (down from 16.89%), signaling potential pricing or input cost pressures. Strong Balance Sheet: The company maintains robust liquidity (Current Ratio: 2.58x) and conservative leverage (Total Liabilities/Equity: 0.23x). However, FY25 Free Cash Flow was negative (-₹12.1 crore) due to heavy capital expenditures (₹86 crore). Strategic Outlook: Despite a 5.6% revenue dip in FY26, the company previously managed to grow net profit by 16.4% through cost control. However, the recent Q1 FY27 margin compression warrants close monitoring. The company’s revenue stability remains heavily dependent on consistent, policy-driven ethanol allocations from Oil Marketing Companies (OMCs). At a P/E of 17.4x against an ROCE of 20.3%, the valuation appears reasonable, but future returns will hinge on the company's ability to stabilize margins and efficiently convert allocated volumes into cash collections.

!ASALCBR fixes Record Date for ₹2.00 Final Dividend for FY25

!Asalcbr has fixed Friday, 25th July 2025, as the Record Date. This date is set for the purpose of determining the names of members eligible to receive the final dividend for the Financial Year ended 31st March 2025. The recommended final dividend is ₹2.00 per Equity Share having face value of ₹10.00 each fully paid up (i.e., @ 20%). The payment of this dividend is subject to approval at the ensuing 36th Annual General Meeting (AGM). If approved, the dividend will be paid/dispatched after the AGM, subject to deduction of tax at source.