Associated Alcohols & Breweries Limited (NSE: ASALCBR) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Anshuman Kedia — Whole-Time Director & Chief Executive Officer
Tushar Bhandari — Whole-Time Director
Dilip Kumar Inani — Chief Financial Officer
Analysts:
Unidentified Participant
Riddhi Shah — Analyst
Vinay Rawal — Analyst
Shreya Chatterjee — Analyst
Aman A. Bbaheti — Analyst
Presentation:
operator
Sa. Sat. Sa. Please stay connected. The call will begin shortly. Thank you. Foreign. Ladies and gentlemen. Good day and welcome to Associated Alcohols Breweries Ltd. Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your restaurant phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Riddhi Shah from Goindia Advisors. Thank you. And over to you ma’. Am.
Riddhi Shah — Analyst
Thank you. Good afternoon everyone. It’s my pleasure to welcome you on behalf of Associated alcohol and Breweries Limited. Thank you for joining us today for quarter three and nine month FY26 earnings call. This call is being hosted by Goindya Advisor. We have with us Mr. Anshuman Kedia, whole time Director and CEO, Mr. Tushar Bandari, whole time Director and Mr. Dilip Kumar Inani, Chief Financial Officer. Please note that today’s discussion may include certain forward looking statements and therefore they must be viewed in conjunction with the risk that the company faces. Without wasting much time, I will hand it over to the management for opening remarks.
Thank you. And over to you sir.
Anshuman Kedia — Whole-Time Director & Chief Executive Officer
Thank you and good afternoon ladies and gentlemen. Thank you for joining us on Associated alcohols and Breweries Limited’s earnings conference call. The third quarter of FY26 marks another decisive step forward in our journey of building a stronger, more premium led and scalable Alcobev company anchored by a resilient and efficient manufacturing backbone. Despite delivering a softer revenue for the quarter, we delivered a strong margin led performance. Our endeavors to improve operational efficiency and easing of key raw material prices have led to an expansion in EBITDA margins to 16% this quarter compared to 12% in the corresponding period last year.
The Indian Alcobev industry continues to benefit from structural tailwinds including premiumization, evolving consumer preferences and broader consumption trends. The recently concluded EU India Trade Agreement represents a constructive development for the sector. Tariff rationalization across select imported categories is expected to enhance competitive intensity and raise quality benchmarks across the industry. While the company expects the limited direct impact developments are being closely monitored. At the same time, ABL remains well placed to benefit from the evolving landscape supported by its strong domestic brand portfolio, extensive distribution reach and price points that remain structurally insulated from imported competition. We are aligning our portfolio and go to market strategy closely with evolving industry trends by deepening our presence in premium segments, expanding selectively into new geographies and strengthening brand equity across categories.
During the year, the Company’s engagement with INBRU transitioned from a license arrangement to a contract manufacturing model. As a result, IMFL license revenues associated with INBRU are no longer reflected in reported revenues, which has had an impact on the top line. The contract manufacturing relationship, however, continues to remain stable and ongoing. Despite this transition, the Company remains confident of maintaining FY26 reported revenues broadly in line with FY25. Our core growth engines remain strong. We continue to target 30 to 35% year on year volume growth aided by an improving brand mix and premiumization trends. With that, I would like to now hand over the call to Mr.
Tushar Bhandari, our whole time Director who will take you through our brands operations and strategic initiatives.
Tushar Bhandari — Whole-Time Director
Thank you. Building on the strategic direction Anshuman has outlined, I will take you through the performance of our proprietary brands and key growth drivers during the quarter and the progress across our portfolio. Our proprietary portfolio continues to be the primary engine of growth. Our iconic brand Nicobar gin launched in 24 has gained a strong momentum in our core market. The brand has resonated well in newly entered states like Maharashtra, Uttar Pradesh, Jharkhand, capturing evolving consumer taste and fast growing craft spirit segments. In India, Hillfoot Whiskey continues to strengthen our premium portfolio. With its unique flavor profile and curated positioning, the brand is gaining traction in the key market and contributes meaningfully to our high end whiskey offering.
Central Province has maintained a healthy growth trajectory during the quarter driven by strong performance in Madhya Pradesh while expanding its footprint into the newer markets. Our long term objective is to build Central province into a 1 million case brand supported by phase geographic expansion, consistent quality and strong brand positioning. Today the brand spans Central Province whiskey, rum and recently launched vodka enabling us to cater to consumer across the price point and categories. We believe Central Province is well positioned to evolve into the scalable and enduring brand with our portfolio. Let me now give you update on the pipeline of our products.
Our RCD product culture remains on track for the launch in H2FI2 26 within our prestige and above portfolio, Takeda and Brandy are planned for the launch in Q1 FY27. This is deliberated and strategic decision by company to align with the launch with the upcoming state excise renewal cycle associated with the regulatory timelines as highlighted in the previous quarter the company has received requisite license from the Mexican authorities positioning ABL to be one of the first Indian company to bottle authentic tequila. Together these launches are expected to further deepen our product portfolio and meaningful strengthening our premium offering across categories.
Our malt maturation process is progressing as planned. Capacity will be primarily utilized for internal requirement of our premium and mid premium whiskey brands strengthening quality and long term value creation. During Q3FY26 we incurred 6 crore towards the CAS procurement and we will continue to procure CAS as per the operational requirement. Our centralized fungible manufacturing facility continued to provide a strategic advantage through cost efficiency and operational flexibility. Geographic expansion remains a key priority where we progressively expand our presence across high potential states. During the quarter we entered Jharkhand market with our premium portfolio including Nicobar, Gin, Titanium, Triple distilled Vodka, Hillfort and Central Province Whiskey.
Jharkhand represents a promising market for us and we believe a curated premium offerings are well placed to resonate with the evolving consumer preference in the state. I will now hand over the call to our CFO for a detailed review on the financial and operational performance for Q3FY26.
Dilip Kumar Inani — Chief Financial Officer
Thank you Tushar and a good afternoon everybody. I will focus on the operational and the financial performance for the quarter end. 9 months FY26 for Q3 FY26 net revenue from operations stood at INR 260 crores reflecting a sequential growth of 3%. Now coming on to the profitability, gross margins for the quarter improved to 46% versus 36% of the last quarter. This was driven by softening of raw material prices and uptick in realization from by products. We expect grain prices to remain broadly stable in the near term supporting margins. Further EBITDA for The quarter was INR 42 crore representing an increase of 73% quarter on quarter with an EBITDA margin of 16% improving by 700 basis points from due to FY26.
Profit after tax stood at INR 27 crores, an increase of 95% compared to the previous quarter resulting in paid margin of 10% reflecting an improvement of 5% margin from previous quarter. Additionally, it is worth noting that the company has recognized a provision of rupees two crore related to retirement benefits in compliance of new labor costs. For nine months FY26 net revenue stood at INR 781 crores with EBITDA of INR 103 crores and a paid of INR 65 crores supported by IMFL proprietary volume expansion and improving margins. Now in terms of segmental performance, for nine months FY26 IMFL proprietary volume stood at 1.7 million cases representing a growth of 32% on year.
On year basis IMFL licensed volume stood at 1.02 million cases with a decline of 77% on year on year basis. As mentioned previously, this was attributed largely due to change in the business scope. In terms of volume of merchant DNA, volume stood at 14.7 million liters and ethanol volumes were 25 million liters for nine months. FY26. On the revenue front, proprietary IMFL revenue was INR127 crores growing at 30% year on year basis. While licensed IMFL revenue stood at INR 122 crores down by 30% year on year basis. Merchant ENA revenue was INR 100 crores and ethanol revenue for the quarter was INR 178 crores.
Looking ahead, as we roll out new products and expand into new markets and geographies, we remain steadfast in scaling our proprietary brands supported by Prudent Capital Allocation and Plant Capex. And our focus continues to be on improving profitability, strengthening the balance sheets and enhancing returns. With that, we can now open the floor for question and answer. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vinay Rawal from Choice Institutional Equity. Please go ahead.
Vinay Rawal
Yeah, hi. Am I audible?
Anshuman Kedia
Yes, yes, yes sir.
Vinay Rawal
So just a question that I had. So we have, we have, I mean seen that the company, you know, is saying over supply in ethanol. So what is the outlook in the demand supply gap that is currently there in ethanol market? How, how would the management see this going?
Tushar Bhandari
Right, see right now what the demand or what the supply of ethanol is is equivalent to 25% of blending of ethanol and government has approved only 20% of the blending of ethanol. Okay. If in future the blending percentage goes up then the ethanol requirement will go up. Actually the supply, as we already said, supply is higher than the supplies are higher than the demand. And as we’ve already said in our earlier calls as well that our primary focus and growth driver would be only and solely expansion of our own proprietary brands. And that’s what we are primarily concentrating on.
Vinay Rawal
Another question and plus to cover, plus.
Tushar Bhandari
To cover, plus to cover the ethanol also we are also looking at supplying it to the private parties.
Vinay Rawal
Okay, okay. Right. Another question that I had was on the Margin front. So on the, on the EBITDA margins most of most of the portion of growth seems to be coming from. Coming from the decrease in. Sorry the decrease in I mean cogs basically cost of goods. So I mean how do you see that the margin improvement would go ahead going forward?
Dilip Kumar Inani
See EBITDA margin. EBITDA margin will try to. The contribution from the EBITDA in the EBITDA margin has primarily as you rightly said is come from the softening of the raw material prices. And second is the increase of our own proprietary brands. So our proprietary brands have grown by around 30% and going forward we will see a continuous growth in those brands. So the margin would be. We would be looking at stabilizing if the commodity prices goes up which is unlikely because we are expecting a good monsoon this year. The crop is good which we see unlikely.
So the margins would be maintained as we are in the growing phase right now. And once the launch of entire portfolio. So next year there will be complete launch of the entire portfolio and the company would be ready for the future with the entire premium and semi premium and popular brand portfolio. Post the entire run of the year we will. We might see a growth in the margin.
Vinay Rawal
Okay. Okay. Sure. That answers my questions. Thank you.
operator
Thank you. The next question is from the line of Shreya Chatterjee from Ageless Capital. Please go ahead. Hello sir.
Shreya Chatterjee
Thank you for taking my question. So on the IMFL side how is the numbers going on in Maharashtra up? If you can give the number of volume cases that has like the. That has been done by till 9 month FY26.
Tushar Bhandari
See this is the first year when we’ve launched in Maharashtra. So primarily the volume in cases if I say is very very low as compared to still AABL is primarily the volumes are dominated in the states of Madhya Pradesh and Kerala. So out of the entire volume 80, 85 volume comes from Madhya Pradesh and Kerala and rest comes from the other states Maharashtra. We are slowing. We are growing slowly because we have to take a cautious approach. Because entering Maharashtra each and every. Each and every district requires a huge amount of capital in terms of entry.
So we are entering one particular district and concentrating and growing. So right now only we are available in say Bombay, Thane, Pune and Nagpur. So these are the primary regions which we have entered. And the premium portfolio offering like for example Hill Fort and Nicobar we’ve just entered in Bombay and Nagpur. So it’s just so any market you enter first one year, one to one and a half year goes in analyzing and Creating a space and creating the brand awareness to the brand associated per se and individual brands. So we are concentrating on that. And similar is the case with up.
Shreya Chatterjee
So, so if I, if I can understand or it would be less than one person in both these markets, the market share and so if you could.
Dilip Kumar Inani
Yeah, sorry, both the markets would be around 2%.
Shreya Chatterjee
Okay. The market share as of now, not.
Tushar Bhandari
Market share out of my entire.
Shreya Chatterjee
Okay, yeah, got it. And so if you could give the volume wise like breakdown of the cases for probably Central Whiskey, Hill, Ford and Nicobar for all the states combined that would be really helpful.
Tushar Bhandari
So out of the entire portfolio, out of the entire entire sales which we’ve done is around 17 lakh cases. So out of the 17 lakh cases again on the premium side, 80 to 85% is almost on the popular front category and the balance 10 to 15% in the premium front category. Right now we are as we said on the call also that we are concentrating on growing Central Province, Central Province brand as per se, which includes Central Province whiskey, vodka and rum. And we are trying to make it a 1 million case brand. So that’s what we are pushing on.
Because see it’s very, in premium brand category, it’s very competitive. So the movement would come on a slower basis.
Shreya Chatterjee
Got it sir. And any numbers you can give to the number of retail touch points that you are thinking of like adding into the new markets that you’re entering.
Tushar Bhandari
So any new market we enter. So every markets has got a different strategy altogether. But we have to, we have to work on all round approach. That is we have to hit the customer from all the sides. So for which the pillars, as you rightly said, one of the pillar is width of distribution. So width of distribution. Just for an example, if I’m entering in Thane, so I will be concentrating and entering into almost 80% shops of Thane. So that’s how we play around in terms of width of distribution and visibility. And for example in UP also we are going state wise because UP is a very vast state per se.
So district wise we are entering UP as well.
Shreya Chatterjee
So any possibility of giving the number of volume cases that you are currently doing in this UP and Maharashtra, so.
Tushar Bhandari
UP and Maharashtra, out of my entire 17 lakh cases, I would be hardly doing around 20 to 25,000 cases.
Shreya Chatterjee
Okay. Okay. Got it sir. Thank you.
operator
Thank you. The next question is from the line of Aman Bahati from Incred Capital. Please go ahead.
Aman A. Bbaheti
Hi. Thank you for the opportunity. Am I audible?
Tushar Bhandari
Yes.
operator
Yes sir.
Aman A. Bbaheti
Yeah. Hi sir. So My first question was in the line of our margins. So we saw you know a big uptake in margins due to raw material prices. But we already have exceeded our guidance as per say for IMFL proprietary margins we have done 21%. So don’t you think when the operating leverage kicks in we would be able to do 25 plus margins?
Tushar Bhandari
Aman, see as I said that is we are in the growing phase and our objective in Shreya’s answer also I answered that today also are 85% portfolio is the popular brand category. So as we are growing on the premium branding front and we have got immediately two other premium products lined up. Which is, which is premium brandy, premium tequila and rtd. So there will be certain spends which would be required for the brand awareness in these, in these product portfolio we’ll have to do events, we’ll have to do bar takeovers. So there’ll be at least certain amount of spend which will go there unless until these brands are stabilized in next one to one and a half years.
Aman A. Bbaheti
Okay sir. And I mean in Maharashtra like you said the volumes are quite low right now. So what are the realizations are we doing there compared to MP and Kerala in the premium product?
Tushar Bhandari
So in Maharashtra on average we would be doing a realization of around say 1500 rupees a case. Whereas overall realization if you see ours is around 700 to 800 rupees a case overall portfolio. Because Maharashtra was the MM was the MML policy we could not launch our central province series per se. So we’ve just launched our premium brand. And in next one month we’ll be launching our RTD and other premium brands. So that will further increase our realization in Maharashtra.
Aman A. Bbaheti
Okay. And I mean on MML like we discussed earlier, is there any plan for you know, acquisition in states like Maharashtra or Kerala et cetera.
Tushar Bhandari
So Aman, we are in a very growing phase and we are on a lookout of opportunities if it’s there available in the market. So recently we came across an opportunity of acquiring a unit through NCLT route in Kerala market which we have already applied for and that is going on. So if we get that unit so that will be an acquisition. And apart from that we are also looking out for in couple of one or two states in up we have already acquired land, we are in process of acquiring licenses and other things. So we want to be, we want to have at least one, at least two to three more distilleries across India if we want to go pan India’s because that will give you better economics in that particular state because in India every state is a different country altogether.
Every state has got its import duty, export duty and still the volume, still the volume, higher volume brands are on the popular category only. So a company like us who is rapid, who wants to grow rapidly and have a mix of popular portfolio which will give its top line and a premium portfolio which will strengthen its bottom line, we will have to have local presence also in few of the states which are the mass consuming states. So we are definitely lookout for opportunities.
Aman A. Bbaheti
Sure. And sir, last question was on our ENA volumes so they are in a declining phase. So it’s all because of our internal consumption or what’s the reason for that?
Tushar Bhandari
As you rightly pointed out, it’s primarily because our internal consumption has grown is because of increase in our own volumes and as it’s expected to grow further we might also in future look at increasing our ENA manufacturing capacity. We already have sufficient amount of license capacity in place and necessary most of the necessary approvals in place. So we might also look at expanding our ENA capacity looking into our requirements and market requirement.
Aman A. Bbaheti
Okay, thank you. Thank you. That was very helpful.
Tushar Bhandari
Thank you.
operator
Thank you. The next question is from the line of Anshal Pal from MNCL Mutual fund. Please go ahead. Yeah.
Unidentified Participant
Hi. Hi. Good after. Good evening sir. So my couple of questions from my side. My first question is so just wanted to understand how are we planning to scale up our proprietary brand going forward?
Tushar Bhandari
Achal what we are doing is that we are working on a strategy in each and every state in a different manner. So one is to increase your proprietary brand because now consumer is also quite very much aware and he is also looking for a quality product. So one what we are doing is that we are giving value for money to the customers. Whichever brand we design or liquid we do is the price point is off the price point look and feel above at what we are offering. That’s what we are looking into. Second is we are being consistent in our quality.
We are looking for right partners, right distributors and fourth and fifth most important thing is that the company is also looking at taking the right talent from the industry. Because this our Alcobif industry is a very personalized or very relationship based industry because in most of the states the retail owners, retail shop owners are owners who own the retail shop since couple of years. So person whose experience so like our all India sales head is from who spend almost 30 to 40 years in Perno and USA. So we are looking at acquiring good talents and then we are fourth thing what we’re looking at is bottoms up approach for a popular brand.
And fifth, what we are doing is for premiumization, brand awareness where a customer can at least tastes my liquid. So these are a couple of strategies which we are adapting on the popular front and the premium front separately.
Unidentified Participant
Okay. Understood, sir. And also sir, how are our proprietary and partner brands performed in the newly entered regions? And also, are there any difference in customer acceptance and margins versus mature regions?
Tushar Bhandari
See, in certain states which we enter, we get immediate response. Like for example we’ve just entered this quarter Jharkhand. We got an immediate very good response. Like in the first month we sold almost 50, 70 cases of our Nicobar premium gin which is considered to be very good. And so we became number in the first month itself. We are number three there. But obviously this is the first month itself. We have to wait and watch. So in certain states you get initial good response. In certain states it takes time for you to get a right kind of response.
And as India is a diverse market with different cultures, different backgrounds. So same way the preferences in different states is totally different. So just for example, if I take about Madhya Pradesh brandy market is hardly 1%. Whereas I’m just comparing the two biggest sales which we hold. Both the states are equally opposite consumer pattern. So Madhya Pradesh holds only 1% brandy market. Whereas Kerala holds almost 70% brandy market and only 1% whiskey market. So you have to have a local strategy in place in whichever market you enter.
Unidentified Participant
Okay, understood. And what about the margin on the margin front like mature market versus the new regions we have entered.
Tushar Bhandari
The margin does not vary much per se. Because the you are as we are in the growing phase, as I told you. So initial investments, more will go in developing and stabilizing a particular brand. So that’s why it does not vary much in certain. But there are certain states wherein you have to work on a very thin margin. In certain states where the initial cost of entry substantial. Like for Maharashtra, Maharashtra Retail association is there. So you have to give a substantial amount of discount first to enter and be available in the retail store. So every search has got different strategy altogether.
In Kerala it’s completely owned by the government. So government does. Government has got fixed formula on which it will be lifting. So initial phases. If you don’t have volume, you’ll be paying higher, higher amount to the government. Every state we have to work differently.
Unidentified Participant
Okay, understood. Thank you.
Tushar Bhandari
Thank you.
operator
Thank you. The next question is from the line of Shah from Alchemy Capital. Please go ahead.
Unidentified Participant
Yeah. Hi. Am I audible?
Tushar Bhandari
Yes.
Unidentified Participant
Sir. My first question was on imfl. So you talked about in inbrew giving us a contract manufacturing instead of us having different kind of contracts. So my first question is what is the underlying growth that business. So excluding in brew how much have we grown in volume terms and revenue terms?
Tushar Bhandari
So see excluding in brew if I talk about we have got other brand which is from Diageo, which is the brand McDowell number one, Celebration Drum and DSP. So these are the two brands which we are doing it. So the volume is grown by around 3 to 4% in this particular product. And now our concentration is to grow only our product portfolio. So that’s what we are working on aggressively. And this is a license brand is only for the state of Madhya Pradesh.
Unidentified Participant
Right. So sir, if we can talk about this. 3 to 4% growth is year on year.
Tushar Bhandari
Most probably will be in in the same range. Because this is the leader brand in that particular category.
Unidentified Participant
Right?
Tushar Bhandari
Yeah.
Unidentified Participant
And then what is this quarterly? If you look, we have 72% growth in volume. So what would be the reason for that.
Tushar Bhandari
72% growth in the volumes.
Unidentified Participant
Yeah. So it was 2, 2 41,000 going to 4 13,000 cases, right?
Tushar Bhandari
No, no, I think you’re talking about IMFL.
Unidentified Participant
IMFL licensed.
Tushar Bhandari
Once again. So IMFL licensed in last Q3 we had 6 lakh cases which has gone down to 4 lakh cases.
Unidentified Participant
4 lakh. But if you look at.
Tushar Bhandari
So there’s a decline in 33.
Unidentified Participant
Right? That I understood. If, if we look at Q2FY26 the number of cases are 2 lakh 41.
Tushar Bhandari
Okay.
Unidentified Participant
Last quarter. So that has gone to 4 lakh 13. So what is the increase? Where are we getting this delta from?
Tushar Bhandari
No, no. So primary, primary quarter is different. Q2 is most skewed towards the whiskey. And Q3 is more primarily screwed towards the rum. So the rum sale in the entire year 50% of the rum sale, 50 to 60% comes in the Q3.
Unidentified Participant
Okay, understood. So my second question was on malt plant. What is the capex we are doing for the malt plant?
Tushar Bhandari
So on an overall fund we will be doing a capex of around about 100 crores. Out of which. Out of which around 60, 60, 65 crores we’ve already invested. And the balance which would be done would be in cast in purchase of maturation of caste. So this is. Our maturation has already started. It’s been almost two months. Our maturation has already started. So probably within a year, year and a half our first single malt super premium product would Be available in the market.
Unidentified Participant
In one and a half year. Okay. And how big do you think is this opportunity for us?
Tushar Bhandari
So this is a very big opportunity because as as you all are aware that Indian single malts is getting world over recognition and are doing really good and are being compared to any of the good scotches in the world. So there’s a big opportunity as there was as there was a similar case which has happened in terms of Japanese whiskey and they proved their metal in terms of quality. Same is right now the phase with the Indian single moss. So there’s a huge opportunity. Plus it will also give us, it will give us more. More economics.
Because right now whatever malt we are using we are purchasing it from outside. Okay. And outside we are purchasing at a very high cost. And plus consistency is not sure of because I’m buying it from the third party in future, in future in my own brands also I will require malt as my brand grows. So that will give me a better margins as well and give me a consistency in quality which is very important.
Unidentified Participant
Right. And so my third question is regarding one of the earlier participant tasks. Whether we’ll be increasing our ENA capacity. Right. So you told that we may be increasing our capacity. But I think earlier you had mentioned that ethanol plant can be is fungible and can be used for EN as well.
Tushar Bhandari
Yes, it’s required. It can be done.
Unidentified Participant
Right. So instead of increasing the capacity, don’t you think it would be better to move into a better margin, better economics business and store reduce ethanol.
Tushar Bhandari
Then it will be better. But apart from that it’s not is a totally separate right now. So we are also looking and as I said that we are also looking at acquisitions in other states as well. Because we need to be present in couple of states. So it might be here, it might be somewhere else as well.
Unidentified Participant
Okay, understood. Thanks. Thanks a lot sir.
Tushar Bhandari
Thank you.
operator
Thank you. The next question is from the line of Dhruv Shah from BECA fincap. Please go ahead.
Unidentified Participant
Hi team. Thank you for the opportunity. I have three questions. Anshuman, did I hear it right that you said that. That we will end the year with flattish growth on the whole year basis? In your opening. Hello? Hello, can you hear me?
Tushar Bhandari
Yeah. Yeah. Hi Dhruv, can you, can you just repeat your question?
Unidentified Participant
No. In your opening statement did I hear it correctly that you said that we will end the year with flattish revenue for the whole year?
Dilip Kumar Inani
Yes. Yes. Compared to the last year.
Unidentified Participant
Right. So. So that means Q4. Are we saying that we will grow the revenue by more than 25%. If I just do a rough math.
Dilip Kumar Inani
Yeah, yeah. Because we are generally Q4 is the best quarter for us. So we are expecting that to.
Unidentified Participant
Yeah, okay, understood. Tushaji, my next question is on previous participant question that can we see some margin improvement coming from the malt itself towards the end of the next year because we will be one year into maturization and then we can use some of the malt for our own whiskey products.
Tushar Bhandari
Definitely come towards the end of next year. So right now, right now we are using in our primarily one of the whiskey central province we are using one one and a half year mods. So depending on the quality if it’s equivalent. So we’ll start using it in Q4 next year in our own products. And plus the single malt which we launch would be slightly would come in Q4 next year or Q1 after that.
Unidentified Participant
Okay. Understood. And my last question is on ethanol. Why aren’t we seeing any benefit of the lower ROM material prices on the ethanol side of the business? Because ethanol we are still making only 2% a bit. So why aren’t we seeing any raw material benefits passing on to the ethanol side?
Tushar Bhandari
See Ethanol EBITDA. Ethanol EBITDA would be somewhere on right now should be around 6%, not 2%.
Unidentified Participant
I was talking about EBIT so I was just subtracting the depreciation also in that.
Tushar Bhandari
Okay, but you’re talking about. Okay, so the thing is that obviously because the fixed cost is already there, that is the primary reason we’ve not seen the major. And the ethnol volume has gone down.
Unidentified Participant
Okay, understood.
Tushar Bhandari
Yeah.
Unidentified Participant
And Tushaji, just coming back on my first question about this 25 growth on Q4 that will be primarily driven by our RTD launch and IMFL proprietary because we still have inbrew base in the Q4 last year, right?
Tushar Bhandari
Yes, RTD Lawn proprietary and apart from that we might look at these two major products.
Unidentified Participant
Yes, okay, perfect. Thank you so much and all the best.
Tushar Bhandari
Thank you.
operator
Thank you. The next question is from the line of Harsh from NV Alpha. Please go ahead.
Unidentified Participant
Hello? Yeah, am I audible?
Tushar Bhandari
Yes sir.
Unidentified Participant
Yes sir, just a small question. Start of the call. You said that our focus is on growing the central province which is a popular segment because there is a lot of competition in the prestige. So sir, our strategy within conviction on when you say a malt when, whenever it is ready, which is premium. How are we going to grow or outgrow the market if we are not able to? Or maybe focusing less on the Prestige and above as of now.
Tushar Bhandari
So we are not focusing less on prestige and above. So it has to be a combination. As I said that for a company who which is at a growing st would definitely need a combination of both a popular brand and a prestige and above premium brand. So there has to be a mix of both. Because a company needs both top line and the margin contribution as well. Our low hanging fruit which is there right now and which is doing really fairly well is Central Province entire series Central Province Vodka Orange. We launched three months back and has already gained a 15 to 20% market share in Madhya Pradesh.
So there has to be a volume driven brand. There has to be one or two brands which will be a million case brand. So that’s what we expect coming out from Central Province. And the premium premium segment which will include our tequila, our Nicobar gin and our premium single malt would be strategy would be totally different on the premiumization front. And the expense and the spends also would be higher in that particular category.
Unidentified Participant
Got it. So sir, one follow up after one year when our these products are up and running. You you mentioned our marketing costs will go up. We’ll able to maintain the same margins. I actually you did mention about this but I missed this point.
Tushar Bhandari
Yeah. We’ll be able to maintain the same margins. We’ll be able to maintain. We’ll be able to try and maintain the same margin. Because premium products would not attract that much in the bottom line direct impact. Because in premium products initial one one and a half year you will need an equal amount of spend to have that kind of visibility and awareness of the brand.
Unidentified Participant
Sure. Got it sir. Thank you.
Tushar Bhandari
Thank you.
operator
A reminder to all participants. You may press star and one to ask a question. The next question is from the line of Manoj Kumar from Adinath Financial Services. Please go ahead.
Unidentified Participant
Good afternoon. My first question was regarding raw material prices. What has been the average prices last quarter and what is the current prevailing price?
Tushar Bhandari
I think you would like to highlight on the same.
Dilip Kumar Inani
Last quarter our prices was around 23,000 and this quarter it is around 20,000 plus. It means this quarter we will be sharing a lot on raw metal prices.
Tushar Bhandari
Yes.
Unidentified Participant
For this Q4 the prices will be stable. Regarding this. Regarding this deal with the US they are insisting on corn imports. Do you think it will have a effect on the corn prices in India going forward? And it will be act as a sterilizer of corn prices. See, the thing is. Yeah please.
Tushar Bhandari
That genetically modified corn is being restricted by the Indian government per se as of now. Because that Will have a great impact. The main purpose for one of the main purpose of driving the ethanol policy or blend of ethanol was to generate income in the farmer’s hand. Okay. If genetically modified corn comes into India, so that will impact a lot for a company. It’ll be nice because probably the corn prices will go down substantially. But we’ll have to wait and watch because I don’t think so there’s any clear picture on that front regarding this.
Unidentified Participant
EU deal, what effect it will have on our company.
Anshuman Kedia
See, primarily talking about the EU deal. If we talk about EU deal would not have substantial effect on a company like us, which is still primarily in the popular category. But obviously it will have an impact in the premium category per se. But most of the states will compensate it probably in one way or the other. And plus apart from that, as Anshuvan said in its opening remark that it will also increase a healthy competition and will increase, will help in increasing the benchmark standards. So everybody will have to give that kind of quality. And plus apart from that, we are well prepared for this entire EUD with the help of coming into a premium portfolio category and setting up our own mall plant.
So we are well prepared for the times to come ahead.
Unidentified Participant
My next question was regarding can you sense any opportunity of exporting ENA to eu?
Tushar Bhandari
So we have already done that and we are also in process of doing it. We have, we’ve been known in the country for last four decades for the quality of ENA which we manufacture. So Diageo during the COVID and post Covid times have purchased ENA from us to make Smirnoff vodka and the other products in the European markets. That speaks about the quality and the standards of us what we have. But right now our focus is primarily on utilizing the ENA capacity in our own value added product. Yes, if opportunity is there and if I get good value, I’ll export it, which I’ve already been doing it earlier regarding SBS Industries.
Unidentified Participant
When do you think it can be closed? The Metro will be closed.
Tushar Bhandari
So the matter is still with the nclt. So as soon as the NCLT gives the nod, we have submitted our bid. We’ve not got an approval. So as soon as we get the approval we will, we will get depends on the nclt.
Unidentified Participant
Pardon me sir, Any hearing this has been things for bet?
Tushar Bhandari
No sir, not right now. I think probably one month, two months, three months. You know how the NCLT court works.
Unidentified Participant
Yeah. Thank you. Thank you.
Tushar Bhandari
Pleasure. Thank you.
operator
Thank you. The next question is from the line of Aniket From CR Kothari, Suns and Stockbroking. Please go ahead.
Unidentified Participant
I hope I’m audible, Sir.
Tushar Bhandari
Yes. Yes, Mr. Nikit.
Unidentified Participant
So my question is regarding to the quarter three for 26 revenue as compared to the previous year quarter it has dropped and I think quarter three is quite strong for the company and quarter four as well. So can I know the reason behind the drop?
Tushar Bhandari
Mr. Dani would like to throw a light on this.
Dilip Kumar Inani
Can you repeat again the question please?
Unidentified Participant
So my question is regarding to the Q3 revenue which which is dropped as compared to the previous year quarter. And my understanding is Q3 and Q4 are both are very good quarters for the company. So I would like to know the reason behind the drop.
Tushar Bhandari
Basically just hold on my Q3 last quarter and Q3 current quarter the revenues dropped mainly due to the franchisee business converted to the job manufacturing business. So around the total revenue down is 56 crores from year on year basis. And out of that 52 crore is due to the franchisee business of inbrew similar to contract manufacturing business.
Unidentified Participant
Okay. And same question regarding to the margins. The margins went up but the revenue went down. But I would like to know what what product drove the margins up Specifically if you can mention like two things.
Tushar Bhandari
Yes, yes. Basically IMFL proprietary band is the highest contributory segment which is giving a 21 EBITDA margin. And second is our IML business. And then third one is a franchisee business. These are the key drivers. First is IMF or proprietary business.
Unidentified Participant
Okay.
Tushar Bhandari
Apart from that the softening of commodity prices. So these have all contributed to the.
Unidentified Participant
And we expect the same to go into the next quarter as a softening commodity.
Tushar Bhandari
I think it will remain stable.
Unidentified Participant
Okay, thank you for that. My final question would be regarding working capital. You. I remember you mentioned the potential increase in the working capital for UP and Maharashtra market. Can you quantify the expected impact going forward FY26 FY27 on working capital?
Tushar Bhandari
So. Yeah, right now or in the near terms we don’t have any foreseea working capital. The requirement much based on the growth we will deploy the working capital. Since we have a surplus fund invested in the some securities which will be converted into the working capital whenever required.
Unidentified Participant
Okay, so can we expect to the working capital days to further tighten down or it will remain same to the current level.
Tushar Bhandari
See, it will still remain remain same or slightly go up. Because as it will completely depend on the sale in the primary regions and the bigger regions which is Maharashtra and up the payment cycle is slightly higher. And plus working capital also requires apart from our cost of product would also require the excise duty. And plus, similar thing is, the working capital might go slightly higher if the sale goes higher.
Unidentified Participant
Okay, understood. Thank you for clarifying the.
Tushar Bhandari
Thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.
Anshuman Kedia
I would like to thank everyone for taking time out and joining this conference call. If you have any further questions, you may feel free to get in touch with our IR agency, which is Go India. Thank you for sparing your time.
operator
Thank you on behalf of Go India Advisors. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.