GM Breweries Ltd. Share Price

GM Breweries grows revenue 20%, but margins slip.

G M Breweries Limited (GMBREW) reported Q2 FY27 revenue of ₹860.62 crore, up 19.9% year on year. Net profit increased 12.6% to ₹39.29 crore, but EBITDA margin fell to 5.80% from 6.24% a year earlier. The margin number matters more to me than the revenue growth. Revenue grew almost 20%, but profit grew only 13%. Total expenses increased 20.5% to ₹812.25 crore. That tells us that a large part of the additional revenue is being absorbed by higher costs. There is also a useful six-month picture. H1 FY27 revenue reached ₹1,663.52 crore, up from ₹1,355.86 crore. Net profit increased to ₹77.03 crore from ₹60.75 crore. Operating cash generation also improved to ₹95.53 crore from ₹40.02 crore in H1 FY26. My view is mixed. The growth is healthy and the company has no reported financial indebtedness. But I would not call this a strong earnings beat when margins are moving in the opposite direction. GM Breweries operates mainly in country liquor, so excise duty and other government levies are important cost variables. Excise duty, VAT and TCS accounted for ₹647.10 crore of Q2 expenses. The next trigger is Q3 FY27. I want to see EBITDA margin move back above 6% while revenue continues to grow. My stance: Revenue growth is encouraging, but margin recovery is what would make me more positive on the stock.

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Q1 FY27: Robust Earnings Amid Impending Cost Pressures

recorded a robust 23% year-on-year (YoY) increase in net revenue, reaching Rs 199.6 crore for Q1 FY27. This growth was primarily driven by resilient, volume-led consumption within Maharashtra’s country liquor market, defying broader macroeconomic uncertainties. Substantial Margin Expansion: Gross profit jumped 48% YoY to Rs 62.5 crore, with gross margins expanding by 533 basis points to 31.3%. This profitability boost was heavily supported by lower procurement costs for key raw materials like molasses and extra neutral alcohol (ENA). Sustained Operational Leverage: Backed by disciplined operating expenses, EBITDA climbed 50% YoY to Rs 46.4 crore. The EBITDA margin stood at 23.3%, marking the fourth consecutive quarter where operational margins remained comfortably above the 23% threshold. Anticipated Input Cost Headwinds: While near-term raw material supply remains stable following a good sugarcane crushing season, structural demand from ethanol blending is tightening feedstock markets. Rising crude oil prices are also expected to drive up packaging costs, potentially compressing margins starting in H2FY27. Supply Risks and Price Sensitivities: Regulated pricing frameworks leave the company highly sensitive to raw material inflation. Furthermore, uneven monsoon progress across sugarcane-growing regions in Maharashtra presents a structural risk to future crop yields and molasses availability moving into FY28. Healthy Financial Position: Despite the looming margin normalization, the company's outlook remains stable. Supported by a debt-free balance sheet, consistent cash generation, and reasonable valuations at 13x FY28E earnings, GM Breweries retains strong financial flexibility.

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Morning Market Insights:

Nifty is in the consolidation range and is expected to trade with neutral bias in the today’ session as well. The support for the index is around 23750 while above 24100 we may see some short covering in the markets. The volatility is expected to continue in the overall broader markets amid ongoing geo political issues. Bank Nifty have given some respite in the last trade after the selloff in the middle of the current trading week. The index is having crucial support zones of 56700-56800 below which the index 56500 is the next small support while 57800 remains resistance for the day. Results Today-

Just Dial GM Breweries Elecon Engineering

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This is another very clean EMA + range setup — fits perfectly into your trading style 🔥

🧠 What’s happening in G.M. Breweries? 1. Clear Consolidation Zone Range: ₹960 – ₹1080 Multiple rejections from top Multiple supports from bottom 👉 This is a tight accumulation box 2. EMA Alignment (Your Edge) 26 EMA ≈ ₹1013 52 EMA ≈ ₹1008 Price ≈ ₹1024 👉 Key observation: ✔ Price holding above EMAs ✔ EMAs flat → ready for expansion ✔ No strong trend yet → about to start 3. Higher Timeframe Support 225 EMA ≈ ₹926 👉 Strong base below → downside limited 🚀 Trade Opportunity ✅ Breakout Setup Trigger: Break above ₹1080 👉 Then: Targets: ₹1120 ₹1160 ₹1200+ 💡 Your arrow towards ₹1150–1200 is absolutely valid. ❌ Failure Scenario If price: Fails again near ₹1080 Breaks below ₹960 👉 Then: Move towards ₹920 possible 📊 Smart Execution Plan 🔹 Aggressive Entry Near ₹1000–1020 (EMA zone) SL: ₹960 🔹 Safe Entry (Best) Breakout above ₹1080 SL: ₹1000 🔹 Pro Setup (Highest Probability) 👉 Wait for: Breakout → Pullback → Retest ₹1050–1080 Then enter

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, , Lead Sector Gains

Liquor stocks surged after Karnataka announced an excise policy shift, sparking optimism across breweries and distilleries. The move triggered sharp gains in companies such as Radico Khaitan, Globus Spirits, United Spirits, and United Breweries, with stocks rising up to 8%. Investors see the policy change as a potential catalyst for demand growth and margin expansion in one of India’s largest liquor markets. Market Reaction -

: Hit ₹1,398.7, up 8%. - (UBL): Rose to ₹1,758.2, up 7.8%. - : Climbed to ₹875.25, up 7%. - : ₹992.1, up 6.5%. - : ₹875.65, up 5.3%. Policy Context - Karnataka’s excise policy shift is expected to improve pricing flexibility and distribution efficiency. - The state is a critical market for liquor companies, given its large urban consumer base and high per-capita alcohol consumption. - Policy changes often influence demand patterns, margins, and competitive dynamics across breweries and distilleries. Sector Implications - Breweries and distilleries are likely to benefit from improved regulatory clarity and potential demand uptick. - Larger players such as United Spirits and UBL may leverage scale advantages to capture incremental market share. - Mid-sized firms like Globus Spirits and Allied Blenders could see margin expansion if distribution costs ease. - Investor sentiment has turned positive, with the rally reflecting expectations of sustained growth momentum. Outlook The excise policy shift in Karnataka has provided a near-term boost to liquor stocks, but sustainability will depend on execution, consumer demand, and broader regulatory developments. With strong brand portfolios and rising urban consumption, breweries and distilleries remain well positioned to benefit from supportive policy tailwinds. Would you like me to also prepare a liquor sector peer dashboard comparing Radico, United Spirits, UBL, and Globus on revenue mix, margins, and state-level exposure?

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G M Breweries Ltd Recent Financials

Q3/9M FY26 unaudited results approved; FY25 sales de-grew 1.57% to Rs 637 Cr, first contraction in 3 years, with EBIT up 29% and PAT growth 35% to Rs 129 Cr. Q2 FY26 sales Rs 202 Cr (up 22% QoQ), PAT Rs 42 Cr (up 91%); low employee/interest costs at <2% of revenues. EPS TTM Rs 71.44, ROE 15%, ROCE 18%

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