Globus Spirits Limited (NSE: GLOBUSSPR) Q1 2026 Earnings Call dated Aug. 04, 2025
Corporate Participants:
Paramjit Singh Gill — Chief Executive Officer, Consumer Division
Shekhar Swarup — Globus Spirits Limited
Nilanjan Sarkar — Chief Financial Officer
Analysts:
Shuyash Samant — Analyst
Unidentified Participant
Himanshu Shah — Analyst
Bhargav — Analyst
Nitin Awasthi — Analyst
Sanjay Mahendra Valia — Analyst
Parag Agrawal — Analyst
Anil Shah — Analyst
Sunil Jain — Analyst
Nigel — Analyst
Nishant Bhat — Analyst
Chetan Shah — Analyst
Pritesh — Analyst
Sarvesh Gupta — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Globus Spirits Limited Q1 FY ’26 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 assessions during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Shuya Saman from Stellar Investor Relation Advisors. Thank you, and over to you, sir.
Shuyash Samant — Analyst
Thank you. Good afternoon, everyone, and thank you for joining us today. We have with us today the senior management team of Limited, Mr Shekar Swaru, Joint Managing Director; Mr Parandeep, CEO of Consumer Division; and Mr Lindandan Sarkat, Chief Financial Officer, who will represent Logis Limited on the call. The management will be sharing the key operating and financial highlights for the quarter ended June 30, 2025, followed by a question-and-answer session. Please note, this call may contain some of the forward-looking statements, which are completely based upon the company’s beliefs, opinions and expectations as of today. These statements are not a guarantee of the company’s future performance and involves unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after the statement is made.
I now hand over the conference to Mr. Thank you and over to you, sir
Paramjit Singh Gill — Chief Executive Officer, Consumer Division
Hello, yeah, can she be heard.
Shekhar Swarup — Globus Spirits Limited
Can you hear me? Okay. Okay. Good afternoon. Thank you for joining us today for our Q1 earnings call. Our presentation and results presentation was uploaded a little bit earlier. However, the PDF of our results was uploaded just a few minutes ago. We apologize for the delay in uploading that.
Today, Param, Nilanjan and I will talk to you a little bit about how the quarter gone by and maybe add some narrative to the performance. Yeah. The performance that we’ve seen in the quarter gone by is a result of structural improvements in our business as opposed to temporary blips.
In Q1 FY ’26, our investments in the Prestige and above segment gained strong traction. The segment is nearly at breakeven as the quarter gone by, which is a milestone we achieved sooner than we expected, right? The segment has also improved its cash cycle. With these improved operating leverages, the segment is well-poised to be a growth driver for the company. So today, so the consumer business of the company operates multiple growth engines with a unique portfolio of strong brands, offering consumers a wide range of options between INR100 rupees a bottle to INR4,000 rupees a bottle.
Our strong manufacturing footprints drives incremental profits from our steady volume manufacturing business. The consumer business contributed 39% to total revenues and revenues in the segment grew by 14% year-on-year and 9% quarter-on-quarter. We continue to grow our reach and presence and Param will share more details about this shortly.
The quarter witnessed notable improvements in the manufacturing business as well with EBITDA margins improving to INR6 per liter. Capacity utilization was at 81% and we hope to see improvements in capacity utilization in the coming quarters. With a stable policy environment, we are now able to operate with raw-material flexibility as well as short demand from OMCs. Our focus going-forward remains to increase utilization of males in East India and consolidate rice in North India. Allows us to fix our margins by procuring forward contracts during the harvest season. With these initiatives in-place, we expect that margins will average at about INR7 rupees per liter with reduced volatility.
Our distillery project in Pradesh is progressing as planned with commissioning expected in Q3 of this year. Utty Pradesh remains a key growth market for our consumer business and the plant in the state provides us strategic Competitive advantages. I would now like to invite Param to talk a little bit more about the performance of the consumer business.
Paramjit Singh Gill — Chief Executive Officer, Consumer Division
Thank you,, and good afternoon, everyone. The consumer business again delivered a strong performance this quarter and supported by our strategic focus on-brand expansion and enhanced market penetration. Coming to the high-growth segment of Prestige and above, I’m pleased to share that we have achieved a strong top-line growth of 50% year-on-year and 36% quarter-on-quarter. As mentioned, profitability continues to improve in-line with volume growth as well as our business plan with operations in Uttra and Delhi already in the breakeven zone and West Bengal also showing signs of being in the breakeven zone by the end of this year. This is despite the temporary impact of the policy decision in Delhi during June 2025.
Our current portfolio comprises 15 brands across whiskey, Jay and drum and vodka segments. The business is now present in nine states and we have also identified three new states with plans of expansion in the same as well are exploring the options to enter the duty-free channels as well as the CSG network. Globus Ansa India Limited, our joint-venture partner with entered the beer market with the launch of Keren 500 ml, strong beer in Bladesh in-quarter one.
The initial feedback is positive. I’m also happy to share that while continues its northward journey, and Brothers are also demonstrating strong potential to be our strong growth partners as we move forward. In luxury, we currently plan to expand our portfolio to three additional states this year and are also eyeing duty-free as an opportunity.
Our expansion strategy includes strengthening distribution network further, enhancing brand visibility as well as recall and capitalizing on our portfolio offerings. In the regular and others category, the segment saw almost 10% year-on-year growth and 5% quarter-on-quarter growth in Q1 ’26. EBITDA margin in this category stood at 17% in-line with the long-term average. We successfully forayed into Pradesh, a high-potential market with a size of approximately 10 million cases per month. In Q1 of FY ’26, we recorded 0.13 million cases in the states with strong potential for further growth. Additionally, we received a price increase of 4.35% in Rajasthan and a revision in Mr Pradesh at 1st April 2025, both of which are expected to support improved profitability and drive revenue growth.
I now hand it over to Mr Ninjan to take us through the financials. Thank you.
Nilanjan Sarkar — Chief Financial Officer
Thank you, sir. Good afternoon. I hope everybody had a chance to go through the presentation uploaded in the website. Last quarter, we have restated finance costs incurred on supplier-financing through dreads. It was earlier reported in cost-of-goods-sold and now reclassified to finance cost. As a result, Q1 FY ’23 results are also being reported in this quarter with this classification. There is no impact of this reclassification on preceding quarters. Additionally, we have successfully reduced debt net of acceptances by INR40 crores.
I now hand over the forum to the moderator for questions. 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 char and one on restaurant telephone. If you wish to remove yourself from the question queue, you may press char and two. Participants are requested to use handsets when ask your question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Himanshu from Dolat Capital. Please go-ahead. MR. Himanshu, your line has been unmuted. Please go-ahead with your question as there is no response from the current participant, the next question is from the line of Raj Shah from RK Family Office. Please go-ahead.
Unidentified Participant
Hello. Am I audible?
Shuyash Samant
Yes, please go-ahead.
Unidentified Participant
Yeah. So sir, my question is regarding IMIL. So do you think currently the lowest-hanging fruit is UP’s IMIL market and new excise policy of the government has a direct relation with it? Please share your view.
Paramjit Singh Gill
Yeah. Thanks,. Yes, indeed, as of now, UP is the lowest-hanging fruit in front of us. And UP has demonstrated a very stable excise policy over the last few years and continues to exhibit — a lot of confidence into all the stakeholders, including us. So yes, we are looking to capitalize UP in times to come.
Unidentified Participant
So currently, if I see, major organized players of IMIL and UP doesn’t have a significant share in that market. So am I right in understanding that the new rules and policies like e-lottery systems and that two years — two years limited time period for a single shop and other things will break the of small and unorganized players and it will be significantly beneficial for Globus and other organized players or am I getting it wrong?
Paramjit Singh Gill
So UP does have large players in IMIL segment. To that part, your information is short. But the second part, which you said UP doesn’t have any, it is an open-market, free-market and it bodes exactly in-line with what I said, rupee is a free-market with a very stable policy and it gives a very good opportunity for players like us to professional players to come and enter and stake their claim on the field.
Unidentified Participant
Okay. And sir, the next two years, how much of 10 million cases per month market globally will try to capture?
Paramjit Singh Gill
So we don’t — we don’t really quantify it, but since the size of the market is so humongous, we are cautiously ambitious to try and gain a strong foothold in this market. But as I said, we don’t give forward-looking volume. But any market-share guidance, any market-share like 10% and both are on the same thing.
Unidentified Participant
Okay, okay. Thank you.
Operator
Thank you. The next question is from the line of Himanshu from Dolat Capital. Please go-ahead.
Himanshu Shah
Yeah. Hi, sir. Am I audible? Sorry, my line got dropped earlier.
Paramjit Singh Gill
Yes, can you hear you. Please go-ahead.
Himanshu Shah
Yeah. Thank you. Thanks a lot. Sir, first is a bookkeepping question. In the manufacturing business, we have sold around 54.5 million liters with a spread of INR6 per liter, then this should have given us an EBITDA of around INR32 odd crore. The numbers are basis our presentation, but the EBITDA that we have reported in manufacturing business is INR22 crore. Why is this gap should be there.
Paramjit Singh Gill
So Nilanjan, can you comment on that please? Are you there?
Nilanjan Sarkar
Yeah, I’m there, sorry. So the manufacturing numbers of sale, you should also exclude the in-house consumption also, have you excluded that?
Himanshu Shah
Okay. So that I haven’t excluded. So this is including in-house consumption. So external sales would be lower. Can you help us, sir, with the external sales or we should just avoid the EBITDA by INR6 to get next to you? Thanks. And sir, any specific reason or capacity utilization are trending lower at around 81%, while it has improved on a Y-o-Y basis, but historically, we used to have our capacity utilization at around 90% 92%.
Nilanjan Sarkar
Yeah, I think I can talk about that. So in the last maybe 3/4 or so, over four years. We’ve been reducing our capacity utilization because of unfavorable raw-material scenario. In Q4 — in Q1, we’ve now ramped that up to 81% and we are hopeful of going even further in this year. Towards the end-of-the year, we will certainly reach our historical stable levels. Some of the low — some of the lower capacity utilization is also due to achieve — upgradation of technology for Corn oil production in East India. So that’s why I’m not saying that it will be at 90% plus from Q2, it might take another quarter, but certainly by the end-of-the year, it will be well over 90%.
Himanshu Shah
Yeah. And on-demand side, we don’t have challenge, both on the ENA and ethanol side since whatever utilization.
Paramjit Singh Gill
We’re not seeing any demand headwinds.
Himanshu Shah
Okay. So whatever utilization will be there less the internal consumption gets sold-off to the external parties. Sir, second, again, a small bookkeeping question on IMIL side. What was the exceptional revenue mix in Q1 of FY ’25, which has led to this decline in EBITDA on a Y-o-Y basis despite price increases in Rajasthan market and improvement in raw-material scenario.
Nilanjan Sarkar
So I think the margin guidance we’ve been giving on our regular and others business is around 17% EBITDA margin. Q1 last year was a — we had very-high margins and towards the end-of-the year, they came down to about, 18% 19%. I think that level, 17% 18% is something that we hope to sustain.
Himanshu Shah
Okay. And by exceptional revenue mix, we mean much higher share of RML or something?
Nilanjan Sarkar
Yeah. So there were certain more profitable SKUs where — which we were able to sell a greater amount of. So these are certain how do I say it, opportunities that you get from time-to-time and you take them. But you know, these are temporary blips. And my intention on these calls is to focus on this — on structural changes that have happened in our business.
Himanshu Shah
Sure. So just one more on raw-material side, we have seen decline quarter-on-quarter basis of 4% in rice and 9% may. So one, are the prices stable around this level or they have seen further correction maybe towards end-of-the quarter or in July. So this is first question. And second question is the benefit of this decline, which has already taken place. Has that got fully reflected in Q1 FY ’26 or it should flow-through in further quarters, Q2, Q3?
Nilanjan Sarkar
So a couple of things have happened. You know, I think I spoke about this in my opening remarks as well that maze is a — is a raw-material that we can really hedge, you know, we can book forward contracts for and get a more secure margin profile for our ethanol business. So we did a pilot for this last year, which included storage of maze as well as some forward contracts. But this year, we’ve really been able to ramp that up. So I believe the number is around, 17%, 18% of our maize demand for the whole year, we’ve been able to fix in terms of fixed prices up and as we go-ahead into the future years, we hope to increase this number a little bit more. So some — some effect of the decrease will go into Q2, but thereafter, what is interesting is that we’re going to be able to manage to maintain our margins with a lower volatility going-forward.
Himanshu Shah
And sir, so from Q2 onwards, we should hit — we are almost there at INR6 per liter. And with this further price decline benefit, we should hit INR7 kind of a number.
Nilanjan Sarkar
No, I think the greatest increase in terms of EBITDA per liter will come from growing capacity utilization now.
Himanshu Shah
Okay.
Nilanjan Sarkar
So but there is there is a little more improvement in gross margin per liter perhaps that is yet to come, but most of it is already factored in.
Himanshu Shah
And sir, lastly on part, while the percentage growth looks quite attractive on a Y-o-Y basis, but our top-line numbers, we are still much smaller over there. And in that backdrop, it looks like we are proceeding slightly more cautiously while we are turning and we are very close to breakeven. But between growth and profitability, are we focusing too much on profitability at the expense of growth?
Nilanjan Sarkar
And is there some I think that’s a great question. Param, do you want to take a crack?
Paramjit Singh Gill
Yeah. Yeah, yeah. No, sir, Mr, it’s always a fine balance. And no, we are not compromising one for the other. We are absolutely committed to sustaining very accelerated growth. But having said that, along with growth, we also enhance our overall capability to sustain and grow each and every state, each and every brand and each and every category that we enter. So basis is balance, there is a fixed pace at which we are right now accelerating. So while we keep profitability very closely in-line of sight, we are not trading off at all. Yeah, because we know as far as we keep growing healthy top-lines, bottom-lines are going to follow us.
Himanshu Shah
Yeah. Just a follow-up on this. So now we have been piloting this business for last three, four years. So should the flywheel effect start kicking-in where the growth rate should start getting accelerated or as the base inches keep inching upward, again, the growth rate will be at levels or start moderating, some qualitative color on?
Paramjit Singh Gill
So obviously, by normal logic, as we are — if we continue to sustain 50% growth, we’ll be closer to 1.3 million, 1.4 million cases from there. So you will not be doubling, tripling business every year over decade. So growth will shallow out a little bit, but they will shallow out from our own previous extremely high-growth. It will not be like the industry growth with the industry is used to. So our growth rates are going to be very, very aggressive and healthy. Yeah. But obviously as the base keeps getting higher, and growth won’t multiply on the base.
Himanshu Shah
So in terms of expansion, we are going to add and expand into three more new states only for luxury products, not for dealers or semi-premium.
Paramjit Singh Gill
Yeah, for main street also, we have added sales which are in the process of getting launched. But for luxury, we have called out we are adding three new products.
Himanshu Shah
Yeah. Okay.
Paramjit Singh Gill
The mainstream business is also expanding. Mainstream business will also expanding.
Himanshu Shah
We’ll get into any newer stage.
Operator
Sorry to interrupt. MR. Himanshu, may we request you return to the question queue for a follow-up question.
Himanshu Shah
No point. No issues. Thank you.
Operator
Thank you. The next question is from the line of Varga from Ambit Asset Management. Please go-ahead.
Bhargav
Yeah, good afternoon and thank you for the opportunity. Sir, my first question is that what is the utilization level of our distinary in Bihar and if post elections liquor is allowed in the state can we be amongst the largest beneficial in that state?
Paramjit Singh Gill
Mister we just finished the Board meeting a little while ago and this is something that we spoke about at the board level as well you know given the sensitive nature of the topic I’m not able to go into it in too much detail, but I just want to say that before prohibition in the IMIL category, had a 25% market-share we have since closed down our bottling unit over there. We have a functioning distillery obviously. So let’s see how let’s see how the policy action takes place, but we are very carefully monitoring that policy.
Bhargav
So net-net, we are prepared right in the event if that event occurs and we’ll be able to capitalize on that.
Operator
Sorry to interrupt, we have the management line disconnected. Please stay connected while we can reconnect the management we have reconnected. Please go-ahead, sir.
Paramjit Singh Gill
Yeah. I apologize. My line got disconnected. So as for the law in Bihar, currently we are not permitted to have any bottling equipment in the state. However, as and when there is an event, we are working towards being prepared for that event.
Bhargav
Okay, understood. And my second question is that, sir, you mentioned in your opening remarks about entering into CSD and. So how are margins in this segment and are these larger markets for us?
Nilanjan Sarkar
Yeah. So CSD for luxury is definitely a significant player because CSG does support a lot of bottled in India luxuries and duty-free continues to be a competitive market, but it’s a very-high energy channel and duty-free availability as well as success excludes the growth of trials to the consumers and the opens of the international bouquet in a very big way. So they are both strategic as well as commercially attractive to us.
Bhargav
Great. And sir, the last question is that, is it fair to say that by end of FY ’26, we should be aiming to become profitable in the IMFL business?
Paramjit Singh Gill
And yes, absolutely.
Shekhar Swarup
End of FY ’26, we are aiming for breakeven.
Bhargav
Yeah. Okay. Great, sir. Thank you very much and all the very best.
Paramjit Singh Gill
Thank you.
Operator
Thank you. The next question is from the line of Nitin Avasti from InCredit Research. Please go-ahead.
Nitin Awasthi
Hello, sir. Two questions from my side. Firstly, I just wanted to understand on the regular segment, something is not adding up. So I just wanted to understand from your perspective because what we have said in the presentation is that we had about 8% volume growth in Rajasthan and Rajasthan is happening to be a very large contributor to our overall pie in this segment. Apart from this, within the presentation, we have also stated that in the first-quarter itself, we clocked some sales in UP itself, 0.13 million, if I’m correct from the presentation. And despite that, our overall sales growth is 1%, that means some states, Rajasthan, Delhi, together we have drastically reduced our sales and that has a very strong impact on our EBITDA. Is that understanding correct? Because fixed-cost would remain dry?
Paramjit Singh Gill
So let me break it up into two-parts. Number-one, Rajasthan has grown. UP, we have initiated Q1 last year, there was 0 sales. Delhi and Haryana have degrown however, the greatest impact on EBITDA is because of a change in-product — a change in-product mix in Q1 of last year. It’s not so much because of Delhi and Haryana, the fixed costs here are very, very low.
The margin profile to be accepted in this segment will be around 17%. The 19% 20% level of Q1 last year is an abnormal sort of margin. And even last year, I had spoken a lot about that. Growth in Delhi and Haryana, Haryana, we have not been very optimistic of growth coming in anytime soon. Delhi was a bit of a surprise. In September, they have committed to relook at the policy. It’s not like our market shares have come down. In fact, our market shares have only grown in Delhi, but the industry has fallen, for various reasons. So they have assured that they would look at this industry in the policy coming up in September. That’s my reaction to your question.
Nitin Awasthi
So if everything stays normal in Delhi, let’s say last quarter which went by Q1, how much volume growth would have been there?
Paramjit Singh Gill
Delhi has been a very stable market, 30,000, 40,000 cases a month,
Nilanjan Sarkar
Now for 40
Paramjit Singh Gill
Now for 40 plus 1,000 cases a month and it’s been stable at that level. It hasn’t really grown.
Nitin Awasthi
Understood.
Paramjit Singh Gill
Yeah.
Nitin Awasthi
Understood, sir. So second question is the three states that we are looking to enter in, how we are planning are you entering in all the segments like specific segments that we are looking to enter in specific states.
Nilanjan Sarkar
Sorry, your line is breaking up for me. Param, if you. I’ll get that one.
Paramjit Singh Gill
Yeah,. So the three states we are opening up are for luxury and among them, one will include the full portfolio that is the mainstream as well. As I said, both run sometimes in tandem and sometimes luxury in. So in this case, luxury is three states and the mainstream is one of the three..
Nitin Awasthi
And planning to take mainstream into the other two states also if things go well or is it pure luxury in those two states?
Paramjit Singh Gill
Yeah. So obviously, eventually we will be everywhere, everything will be there, but we are just being jurisprudent on, as I said at the beginning stage of the business plan that our right to win, the opportunity, the headroom and our positioning of brand portfolio is what we internally use as a determinant. So we give ourselves the best and the tightest chance to win in the state we enter. And basis that filter, we keep choosing it, but eventually you will see us in mainstream as well as in luxury everywhere.
Nitin Awasthi
Understood, sir. Thank you.
Operator
Thank you. The next question is from the line of Sanjay Manial from DAM Capital. Please go-ahead.
Sanjay Mahendra Valia
Hi, sir. I have few questions on the ethanol DNA part. So I think you have a INR33 crore kind of a capacity. What kind of external sales of ethanol you can do in a year and if you can also elaborate which — which is a major feedstock, what is the proportion of maze and proportion of broken rice and FCI rise you are using as of now? Right.
Nilanjan Sarkar
So I think 33 includes our UP facility that’s yet to be commissioned, but even without that, it’s, I think north of 27 28, so you know, our entire capacity is flexi between neutral alcohol and ethanol, except for the facility in Rajasthan, which cannot produce ethanol. So that entire facility is in any case largely used for internal consumption. So we didn’t feel the need to set-up ethanol all other facilities can do both with our current level of internal consumption at each plant, which is only going to increase in the years to come as our consumer business grows, we do not see any challenge in-demand of ENA and ethanol for our facilities. And hence the facilities have been sized according to the demand that we are confident of. So I hope that answers your question.
Sanjay Mahendra Valia
Yeah. Just on one thing on the maize and broken
Nilanjan Sarkar
Raw-material price,
Sanjay Mahendra Valia
What is the contribution.
Nilanjan Sarkar
Our North plant, so Rajasthan and Haryana, one largely on broken rice. And our Eastern India plants run now largely on and that’s due to the raw-material scenario in the two regions.
Sanjay Mahendra Valia
And is it possible for you to elaborate at what price we are now procuring maze because what my broad understanding is despite MSPs at INR24, the price of maize has come down drastically and that ideally according to my calculation should be north of INR8 a liter kind of an EBITDA. So if you can just elaborate on that.
Nilanjan Sarkar
So yes, you’re right, prices came down to about INR22, INR23 delivered to our factories or to our warehouses. However, what is more interesting for me personally is that we’ve been able to secure mails delivered to our factories up till November or December at a price of 24, 24.50 and that is what I see as a huge win for Globus because we’ve been able to completely eliminate all sorts of margin volatility on account of raw-material.
Sanjay Mahendra Valia
Okay. Okay. And one last one on the IMFL side. What is our sort of view over the next two, three years? What is the aspiration we have about the IMFL business, what kind of a run-rate we want to Achieve over the next, say, three, four, five-year period?
Nilanjan Sarkar
I think Param spoke a little bit about that earlier, someone else asked as well. But you know, just trying to paraphrase what he said. We hope to continue these levels of growth rates in the near-future. But as our business scales up, know, 50% plus revenue growth will be very difficult beyond a point so they will come down but we will be much faster than the more established industry peers.
Sanjay Mahendra Valia
And do we have some sort of a profitability in mind or aspiration in mind over the next, say, three, four years that let kind of a profitability really want to achieve.
Nilanjan Sarkar
I mean, you know, our internal targets are to be in-line with the profitability of our peers. Those are our targets right now, but you know, let’s not jump too far ahead. We got to get to breakeven first whilst continuing our growth and we’ve demonstrated that for a couple of months in this quarter. Hopefully, we can do that for the rest of the year as well. And then let’s take it from there.
Sanjay Mahendra Valia
Sure, sir. Thank you. Thank you very much for that.
Operator
Thank you. The next question is from the line of Paran Agrawal from Old Bridge. Please go-ahead.
Parag Agrawal
Hi, good evening. Congrats on strong set of numbers. Just a couple of questions. On the consumer business, specifically the country liquor business, you’ve called out QP is about 10 million cases, given that you’ll have an advantage of your own plan there. What is the kind of market-share of that you’re looking for, number-one? And number two, if you could just illustrate the operating market dynamics. I mean, how many players are operating if some sense there would be helpful. And second, on the prestige business, was the margin in this quarter a one-off or do we expect this to be the new normal?
Nilanjan Sarkar
So, could you please.
Paramjit Singh Gill
The first one in UV in IGL, they are among the leading players in the IMIL segment and then there are many you know, as I said, stable but relatively smaller players. So it’s a well-distributed market among many participants with these two still being leading the and we definitely see ourselves also becoming one of the formidable players in years to come because we have all the credentials of making it up and the whole intention, one of the reasons why distillery came on the drawing board was to have a full 360 opportunity in UP, which is above as well as regular.
Coming to the — what was the second question I miss out? Remind me?
Parag Agrawal
The margins in your number of consumer business?
Paramjit Singh Gill
Yeah. So we — yeah, we are definitely point to — our intent is to be in the same zone where we are in Q1. That’s the intention because we have set ourselves that we should fingers crossed should be in the breakeven zone in every quarter as we have been. Obviously, there will be some favorable quarters and some challenging quarters because you know seasonality and investments don’t align month-on month. But yes, we definitely see ourselves only getting better as things keep unfolding.
Parag Agrawal
But just a follow-up. I mean in your earlier in the earlier, maybe two years back you were investing in particular territories then as those territories started getting profitable, you were essentially utilizing those cash flows to build or gain scale in other territories. But what I’m probably getting out of your response now is that maybe from an expansion standpoint or a distribution standpoint, a reasonable effort has been put together and now it’s going to be about making those smaller markets maybe which are unprofitable to start making profits. Is that how we should look at it? So we expect to probably expand your distribution for the same year.
Paramjit Singh Gill
So let me say it. So the call — the call-out which we had made was that the intent has been in the third complete year, we would — we endeavor to make a state breakeven. That has been the endeavor. And as we — whenever we plan, we plan the launch of the state whenever we — I think the time is right. And the third complete year is when we want the state to come on to the contributing position. And we are holding on to that and that is how at any point of time, states are — we have called out, are in the zone of making profits or breaking even and newer states will continue to invest.
But as the breakeven states continue to get helped, obviously, they will — we see them giving in more profits than the investment that is required for the new states. And that is how we see over-time our — while the investments will continue, our operating margin as well as the profitability position will keep on getting stronger and stronger.
Parag Agrawal
Okay. So would INR10 crores be a decent number for FY ’26 for this business in terms of EBITDA loss?
Paramjit Singh Gill
Unfortunately, we will not be able to help you on that question.
Parag Agrawal
Okay. Sure. Yeah. Okay. Thank you and all the best.
Paramjit Singh Gill
Thank you so much.
Operator
Thank you. The next question is from the line of Anil Shah from Insightful Investments. Please go-ahead.
Anil Shah
Yes, sir. Hi. Am I audible? Hello. Am I audible?
Paramjit Singh Gill
Yes. Yes, please go-ahead.
Anil Shah
Okay. Sir, a couple of questions. One on the manufacturing side, where are we from a scale of 100 to 100 in terms of de-risking the business that we started the journey probably 12, 18, 18 months back were to change you know-how, how protected are we and how secular is this business going-forward?
Shekhar Swarup
Yeah. I mean, okay, let me try to answer that in — let me try to answer that. You know a rising tide or a lowering tide will affect every ship, okay there is the ethanol business cannot insulate itself from you know tidal impacts but within you as long as the current policy environment exists, which means 20% ethanol blending, a certain spread between MSP of crop and a purchase price of ethanol, within that environment we have been able to secure our margins considerably and that includes fixing prices of raw-material by shifting to mails, at least in East India having multiple fuel sources for our boilers, having on oil production as well as DDGS production to maximize value addition from byproducts. These are some of the initiatives in-place to hedge that. But if there is a reversal in ethanol for some reason, which I find completely, you know, improbable, then there is very little we can do to protect ourselves from that.
Anil Shah
Not in terms of the blending part. That I think will only get higher, obviously from the government focus. My question is more related to the policy changes in terms of the pricing of the raw-material rise, which the government basically gives from the Food Corporation and on some bit of pricing volumes from the?
Shekhar Swarup
My sense is that for the current year as well as the next year, there is sufficient policy stability for us to say that margins are going to remain less volatile. There is sufficient price clarity of rice from FCI and how do I say it? Ethanol prices of each of the raw materials from the OMCs, we are expecting ethanol blending to increase as are you — so I think for a couple of years, we are pretty good on raw-material volatility, that.
Anil Shah
But sir, second question is, and this has been asked by multiple people on the call already, but just if you could still go into further details on the consumer regular and other businesses. So Rajasthan, which is our main market, we seem to have grown volumes Pretty well. We’ve got a 4% price hike. We’ve done more sales in UP from zero last year, same quarter and despite the mix, at least from us, from a Rajasthan being the main market where volumes have grown and pricing has come and yet EBITDA to not grow is something that a financial analyst, it’s difficult to understand.
Nilanjan Sarkar
Okay. So let me get into it again. There are two scenarios. There are two things that have played out. One is that in Q1 of last year was an abnormal quarter in terms of product mix in Rajasthan and in some other geographies, which gave us a much higher EBITDA per case or net sales value per case as compared to normal.
Number-one. Number two, over the course of the year, there has been certain cost increases in packaging. Nominal, but yes, there have been cost increases. Number three, as our Rajasthan business has grown in volumes tremendously over the last three years, our share of second-hand bottles has reduced whereas the numbers have only grown but the share has reduced we are reverting to our older share of second-hand bottles now towards the end of Q1. So all of the — whereas each of these things in isolation is not a large ticket item, but all these things put together have led to that reduction in margin from around 20% to I believe around 17% in Q1.
Anil Shah
Right. So given the fact that this background and I appreciate we don’t give forward-looking guidances, but given the fact, okay, that the Q1 has had some exceptional because of last year’s. How do we see this for the next two years, ’26 and ’27, should given the fact that we have UP, should we pen in higher-volume growth and with 17% 18% margins, should we pen in 12% to 15% revenue growth. So if you could give some color on this, it will be — I appreciate it.
Shekhar Swarup
I’ve always last two or three calls even when the EBITDA margins were at the 19% 20%, I have maintained that 17-ish percent is the margin for this business, okay. So we were expecting a reduction and that reduction has come up. Secondly, UP currently is much less profitable than Rajasthan because we are not manufacturing our own alcohols, right? But it’s not — it’s not made any meaningful impact at all on margins overall because the volumes there are so small right now. But as soon as that distribution starts off, which we’re saying is Q3, the margins in UP will again be around the 17% number.
So the margin to expect for the next few years in the regular and other segment is going to be 17%. Now in terms of revenue growth, yes. Rajasthan, I’m not saying anything new today. I’ve said this earlier as well is going to grow at mid-single digits and that’s the visibility we have currently. UP, because of our scale, which is very small currently is going to grow much faster. It’s difficult for me to say whether it will stabilize at whether we — how quickly we get to 2 lakh cases or three lakh cases a month or 1 lakh cases a month. We still have a lot of operations to perform before we can give any volume guidance or growth guidance there.But given the scale of UP currently for at least four, six, eight quarters, I would sense that overall regular industry should be a mid-single-digit growth.
Anil Shah
Sure. So could we take this as you know, at least for the current fiscal year that this — as far as the EBITDA of INR39 crores is concerned is probably on the lower-end and as we move successive quarters going-forward, things will get better. Because volume from, we will come in third, 4th-quarter profitability will improve.
Paramjit Singh Gill
Yes. If the volumes improve, improve margins are stable, we will have more profits.
Anil Shah
Fair. Thank you, sir. That’s all from my side. Thank you.
Operator
Thank you. The next question is from the line of Sunil Jain from Nirmal Bank Securities. Please go-ahead.
Sunil Jain
Yeah, thanks for taking my question and congratulations on good numbers. Sir, my question relates to Prestige and Nepal. Can you talk which are all brands is driving this growth or it’s more of a distribution channel, which is driving this growth? And what is the pull of — of pull from the market for — which brand is doing exceedingly well, which is the top brand in your?
Nilanjan Sarkar
Thank you. Param, could you please?
Paramjit Singh Gill
Yeah. So as of now, we apart from our luxury brands which are Dwab as a family comprising of two variants, Mountain Oak, as well as brothers; Company, all three are finding a very strong firm traction with the consumers and we are very, very happy with the momentum that these three brand categories are building.
Sunil Jain
So which is the top brand in your portfolio?
Paramjit Singh Gill
As of now, our top-line — top brand is and Oak.
Sunil Jain
Okay. So in overall sales of a road in this year, is this the main contributor?
Paramjit Singh Gill
Won’t be able to give you more details than that. But as I said, it is still — there are three brands plus luxury, which are all playing a very powerful role and out is the largest of the family.
Sunil Jain
And sir, second question relate to price increase you had said you got price increase in Pakistan. So benefit of that has already come in this Q1 or will be coming in the coming period?
Shekhar Swarup
No, this is after the benefit. Q1 includes the benefit.
Sunil Jain
Okay. So any other estate you are getting right?
Nilanjan Sarkar
UP, there has been a price increase in Rajasthan, UP, I don’t have the number. But all of the performance is inclusive of price increases. There are no further price increases expected in the balance period of the year.
Sunil Jain
And sir, last question about this data, if you can share bulk outside sales volume if possible
Nilanjan Sarkar
Yeah, sure. Thank you. I think we received that as well from another question from another person. We will provide that breakup in the subse. We’ll in fact update our investor presentation with that breakup.
Sunil Jain
Thank you. Thank you very much, sir.
Operator
Thank you. The next question is from the line of Nigel from Leo Capital. Please go-ahead.
Nigel
Yeah, thank you for the opportunity. Firstly, what percentage of the regular and others business came from Rajasthan in FY ’25 and in Q1 of FY ’26.
Paramjit Singh Gill
So I don’t have that number on Nilanjan, do you have it?
Nilanjan Sarkar
Rajasthan contributed about 72% of the total revenue
Shekhar Swarup
Q1 — in Q1 and in Q — and Q1 last year
Nilanjan Sarkar
That I don’t have right now.
Paramjit Singh Gill
Yeah. We can — we can get that across you.
Nigel
Understand. And my next question was, by when do you expect the UP distillery to be operational?
Shekhar Swarup
Q3, it will be running in Q3 of this year.
Nigel
Q3 of FY ’26. Okay, got it. And is the profitability of ethanol depressed in Q1 or is this the normalized level of profits you expect going ahead in the current financial year given the prices that have been announced?
Shekhar Swarup
From our entire manufacturing business and not just ethanol, so average of ENA and ethanol, we expect an average margin of INR7 rupees per liter going-forward.
Nigel
Okay, got it. Yeah, thank you for the opportunity and congratulations. Thank you.
Shekhar Swarup
Thank you.
Operator
Thank you. The next question is from the line of Nishant Bhat from Equity Works Limited. Please go-ahead.
Nishant Bhat
Yeah, am I audible, sir?
Paramjit Singh Gill
Yes.
Nishant Bhat
Yeah. My question was regarding you know the UP. Given the management’s focus on the disciplined expansion and profitability, especially in the IML segments. Could you please elaborate on the current progress in UK in terms of volume growth? And regarding the retail distribution Footprint and how does this execution cadence compared to Rajasthan in the early ramp-up years?
Shekhar Swarup
Okay. I can throw some color on the early ramp-up years. I mean, unfortunately, it’s very difficult to compare because we are looking at something that took place 30 years ago with modern times so I’m not sure if there’s any terrible there Param, do you want to talk about how the scale-up is going?
Paramjit Singh Gill
Yeah. So obviously the — we have a bouquet of brands which you’ve entered, the brands and the bouquet have been chosen versus the category strength because in also, there are flavors and strengths available in UP. And we have primarily focused on the districts where we believe we have a right to win. We have put a separate sales team for this whole IMIL it is distinctly different from our normal prestige in our team and hence works as an independent entity focused only on bringing in success to this.
And we see ourselves taking a you know almost another year and a half to be totally present in UP because the size of the market is so big that we don’t need to be present in all of UP to get millions and millions of cases. So the whole business is hinging on wherever we enter, we must carve a place for ourselves and deliver market-share to make it the most efficient business for us. So the spread across UP, most of the big players except Radico even IGL, which is the number two-player, must be missing a few districts here and there in UP.
So all other companies are not spread across all the districts of UP. So in IMIL spread is only one of the parameters. Unlike in IMFL, obviously, the spread does give you a lot of heft. So there the penetration as well as the depth of your market-share is what really matters most because each district is very big in volume and business opportunity.
Nishant Bhat
Got it, got it. That explains a lot. And just one more small question was how is the consumer feedback in UP, especially in your IML segment?
Paramjit Singh Gill
We were very happy to say that the initial feedback is positive and that’s what gives us a bullish view that you know, in the short-to-medium term, we are going to really cause a case for ourselves.
Nishant Bhat
That helps. That’s from my side. Thank you.
Paramjit Singh Gill
Thank you.
Operator
Thank you. The next question is from the line of Shah from JM Financial Family Office. Please go-ahead.
Chetan Shah
Hi, thank you so much. Sir, couple of questions. Both are a broadly strategy. So just wanted to get a sense from a medium to slightly longer-term perspective. So as the consumer segment continues to grow, so how would we prioritize our manufacturing segment basically, I mean, first my sense would be will incrementally more-and-more utilize for internet consumption and then we have ethanol and then we have EMA. So do we have that flexibility to switch between the two because I believe in ethanol, we generally sign contracts on an annual basis. So what’s the thought process here from the perspective? That is the first question.
Shekhar Swarup
So I think that’s the right way to think about it that we first keep aside the capacity for our internal consumption and then we decide what is going to be more beneficial ENA or SMO and then we allocate capacity for ENA and then whatever is balanced, we sort of just pick-up ethanol orders for it. You’re also right by saying that ethanol orders are once in a year, but they do have a quarterly tender system for residual quantities.
Till now, we have not faced any challenge. We typically keep say 15 20 days per quarter, a little bit of buffer to bid for in the subsequent tenders in case there is reduction of demand or anything of that nature, but you know, our growth has been fairly predictable in our consumer business. And as a result, an annual tendering process is good enough for us. We don’t really require a monthly or quarterly tendering process.
Chetan Shah
Got it. Understood. And just one follow-up here. So right now, if you can comment on the profitability between the two segments? I mean, what could be the differential within ethanol and EMS externally?
Shekhar Swarup
I mean, it’s difficult to say, right? And for example, Rajasthan is very highly profitable on ENA and that’s simply because we have very little capacity to offer there but the right way to think about it is that in any state eventually, ENA and ethanol will be at the same margin. Maybe ENA will be at a 10% to 15% higher-margin as compared to ethanol. But the right way to think about it is be very similar margins.
Chetan Shah
Got it. Understood, clear. And just one last question is after this UP project and we don’t have any other capex that is up, so is it fair to say that at least so many
Shekhar Swarup
Expansion, there is regular maintenance capex that takes place, but no capacity expansion kind of a capex.
Chetan Shah
So entire cash flows over the next two years will be utilized for largely debt production. Is that right?
Shekhar Swarup
Yeah, yeah. Unless there are some opportunities that come up which we are not opposed to, but as of now, that’s the plan.
Chetan Shah
Okay. The opportunities mean on
Shekhar Swarup
Inorganic
Chetan Shah
I mean inorganic. Okay. Okay. Okay. Got it. Understood. That’s very clear. Thank you so much, Mr Shik.
Shekhar Swarup
Thank you so much.
Operator
Thank you. The next question is from the line of Pritesh from Lucky Investments. Please go-ahead.
Pritesh
You guys have joined the call a little bit late. I have just one question on the profitability in the manufacturing segment, which has reverted to about INR6 a liter. What would be your comment on the sustainability of this profitability?
Shekhar Swarup
So you know there’s actually spent a considerable time on that in this call I’ll quickly summarise it, sir and our transcripts will be available on the website in a day or two. The summary is that given the — given that we have policy visibility for a couple of years currently and that we have shifted in East India to maize, which allows us to book forward contracts as opposed to rice, which is entirely a spot market, we — we have the ability to secure our margins. That does not mean there will be zero volatility. It means that volatility will be reduced dramatically. My sense is an average of INR7 rupees a liter will be the margins.
Pritesh
Okay. And I presume that bulk of this profitability enhancement is because of the mesh prices correction of OEM2 release of ice stocks by
Shekhar Swarup
Yes so there is now a scenario in the industry where you have three raw materials available in plenty of supply. In fact, putting all three raw materials together there is now finally a slightly surplus situation on the grain side in the Indian market and which is the way it should be. That’s how the ethanol policy was designed.
So — and this — this policy of keeping this kind of surplus is now clearly visible for two more years. FCI is offloading a large amount of inventory either of surplus rice or of broken rice through improved quality of procurement of rice.
Pritesh
Okay. My last question is, can you comment in the six months since this policy came in? I think this policy was announced in Jan-Feb and post its implementation. What should be the drop-in the rice price from the Jan and what should be the drop-in the price?
Shekhar Swarup
So really it came into effect only in April. And so let’s look at it from an April point-of-view And April is also April to June is also the period when there has been a very significant harvest of maize in East India in case of broken rice the prices, I mean I’m talking peak to low, I’m not talking average to average, I don’t have that figure but peak to low rice prices were down 15% and maize prices were down 20%, but that’s also because of harvest. So maize prices will now start going up in the market. In the spot market, Globus has secured forward contracts and inventory to secure a large share of our business mix.
Pritesh
Okay, okay. So when you say peak, which means the peak that you would have experienced in the last two years, you are calling out the
Shekhar Swarup
Peak of March to bottom of —
Pritesh
Okay, that’s right. Okay. Peak of — any case, the peak of March was also what we experienced for quite a long-time, right? So pretty much, pretty much. I mean, I may be off by 1%, 2%, but we are at.so now because in May, we got a long-term contract. So the visibility of profitability is that much more stronger and you would have booked base for yourself for few quarters ahead.
Shekhar Swarup
Yes, for a few quarters. I mean, I think in our investor deck we have a slide on it, but we hope in the next year — in the next harvest to increase this further. So we started this process last year. We’ve grown it considerably this year and hopefully we will get to a steady number next year.
Pritesh
Got it, sir. Thank you very much. All the best queue. Thank you.
Operator
Thank you. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go-ahead.
Sarvesh Gupta
Sir, thank you for taking the question. On the P&L side, so when we launched this business and now we are entering consistently entering newer states and also adding the products. So obviously, we must be doing a lot of you know, activation at the channel levels, plus maybe giving better sort of incentives to the dealer and the distributor networks, etc., which might be helping us in the growth of the sales. But as you would understand, the main proof of the pudding is in repeat sales. So if you can throw some color on the sustainability of the growth because of the rupeat sales that we are seeing from the consumer behavior towards some of our products.
Shekhar Swarup
So I mean, this is really Param’s domain, but very quickly, I’ll give you a proof that I look at is reducing number of days of trade receivables and sustained growth over a period of time. And over the last 10, 12 quarters, we have demonstrated a sustained growth. We have demonstrated improved working capital cycles. So this is not product that we are putting in the market and it’s not selling. It’s — you are fast-moving products and finally, of course, it’s an increase in profitability.
Sarvesh Gupta
So absolutely. So I think if we look at the three, firstly, sir, it is in today’s highly competitive environment, it is not possible to last even six months unless you do not get repeat demand of the brand and leave aside three full years. Second is, we will — if we see the profitability trend, if we see the trade receivables as well as we see the volume and the revenues go up, I think it’s given that the brands are gaining traction and you know, they are allowing us to be in a position where we are really have very strong optimism and are continuing to spread.
Actually, for most of the — from what I hear on the investor call, sometimes we are asked, why are we expanding too slowly and that’s where we say it is about achieving success in a state and then expanding to the next one and because our commitment is that the third full-year, the state on its individuality should strive to be breakeven and thereafter start contributing to the mother. So if you just sort of correlate these factors, one is in an almost certain position that the brands have a strong traction in the marketplace?
Shekhar Swarup
In addition, I’d invite you to come visit our markets have a little look at some of our shops and see it for yourself.
Sarvesh Gupta
Yeah, Pradesh, Haryana, Delhi, West Bengal,, I mean, welcome to come to one of the states where we are operating and see how your team is performing? And I guess it would also be sort of manifested in the return data from the dealer or the channel level, if any or and the repeat buying from the individual dealers, etc., right?
Shekhar Swarup
No, absolutely, absolutely the repeat buying is the beginning of the journey. Without that there is no journey. Repeat buying at the consumer level, repeat buying at the retail level and then repeat buying at the dealer level. And all the repeat buying must be accompanied by revenue movement between the trade partners because money must exchange hands for the previous transactions or the future transactions. So absolutely.
Sarvesh Gupta
Okay. And secondly, with this UK coming into picture, you know a lot of brands that we typically buy are also in the competing price ranges. So now that few months have passed-through this, any further color or understanding that you would have accumulated in terms of the impact that we may see on the P&A side?
Shekhar Swarup
So my take on it is as follows. First is the impact of that is still a few months away. I think we are going to start seeing some reasonable impact in about a year from now. On the procurement, we definitely see ourselves getting some advantage as we chug along and in terms of the consumer benefiting from the prices enough has been said, you know that all possibilities exist because there are many trade partners in the channel, including the government as to whether there is going to be any noticeable reduction in the consumer price or not. From our point-of-view for our Bottled in India brands, do we see it as any challenge? Not at all. We do not see it as any threat whatsoever. We only see a softer procurement of scotch, if at all.
Sarvesh Gupta
Okay for this beer where we have did. We have done a joint-venture a company. So is it a very sort of a niche strategy? I mean, when we were doing this baby, we would have probably had some other options as well. So how do you see this particular deal? Is it going to be operating as a niche sort of a strategy or is it something that is designed to sort of pick-up a larger market-share over a larger consumer scale.
Shekhar Swarup
So we see ourselves as a stable player in the beer category also as we go-forward. We have obviously started with the first state UP and after having spent some time, we will obviously strike out into another state as well. The intention is to create and build this business itself into a larger opportunity. It is not for just to sort of have one more add-on because it does take time, effort investment as well as strategic thinking to operationalize it.
So we do intend to capitalize on the opportunity that the Indian beer market is offering us and we have started with one of the large opportunities of Pradesh. So we are very excited about this category and you’ll hear more from us as we go-forward.
Sarvesh Gupta
Finally, just one keeping question. So what is the net-debt that we have right now?
Shekhar Swarup
Excuse me. The net one.
Paramjit Singh Gill
Sorry, can you repeat the question, sir?
Sarvesh Gupta
The gross gross debt and the gross cash that we carry in our balance sheet as on 30th June of the London
Nilanjan Sarkar
And debt after cash-and-cash equivalents is 34, 334 crores
Sarvesh Gupta
Okay thank you sir and all the best for the coming quarters.
Operator
Thank you. The next question is from the line of Tarang Agrawal from Old Bridge. Please go-ahead.
Parag Agrawal
Hi, just on bookkeeping, you know, if I look at your bulk business roughly INR22 crores of EBITDA for about INR5.5 crore liters of bulk volumes. So that translates to about INR4, INR4.5 rupees. I’m not too sure how the INR6 number is coming from.
Paramjit Singh Gill
So we clarified this earlier in the call. I think we should update the slide. The our bulk sale is lower than that. That’s our total bulk production.
Parag Agrawal
Got it. Okay.
Paramjit Singh Gill
So we’ll update that slide. It’s an error at our end, the information will be much clearer.
Parag Agrawal
Got it. Second, on the UP distillery, I mean, the rational is essentially to feed the UP market, right? I mean, whether it’s through the business or the IMFL business and if at all there is any spare capacity, then it gets diverted to EMA or ethanol as the case maybe.
Nilanjan Sarkar
Yes.
Parag Agrawal
Okay. Fair enough. Thank you.
Operator
Thank you. The next question is from the line of, an Individual Investor. Please go-ahead.
Unidentified Participant
Yeah. Thanks. I’m going to keep this brief because as always, I come in at the fag end and I’m sure everyone is kind of tired. So a quick one, Sheikhar, on the luxury part of the business where we currently have Duab and we also have Terai with a new variant as well, the cheese and mulberries. I just wanted to understand that how do you see the product portfolio or the range architecture evolve in this part of the business, which I think you formally called IWSR or something like that. And could you just give some understanding of how are we going to play-out the luxury part from a product portfolio, I’m not asking about distribution.
Shekhar Swarup
Yeah. I mean, I don’t know-how much color we can give on that because of confidentiality. You know, I don’t want to talk about what are the new products you want to launch here so I mean if there’s anything else I can say I’m not sure to answer your question.
Unidentified Participant
Okay the other one would be on the prestige and above. There’s supposed to be a 650 risky.
Shekhar Swarup
Right. Is that we’ve already — Param, if there is something that we’ve already announced, obviously, we can talk a little bit more about that, but launches, we can’t really talk about unfortunately. Yes. So in Prestige and above, we have riskis which are ranging from as you rightly said, approximately INR600 onwards to right about we go up to almost 12, INR1,300 rupees and then the luxury category starts kicking-in and goes right up to almost 5,500 rupees now. And yes, the MRP to the consumer is — we must realize it’s a big function on which state we are talking of because the same brand can be 650 in one state and 950 in the other.
So it solely depends on the state we have in reference, but we define it more with category.
Unidentified Participant
I’m referring specifically to the slide which says about product launches, it says INR650 risky coming soon. So I was talking more specifically about that.. For the last two, 3/4, there’s been just one empty row or column which talks about a INR650 risky. So I was just wondering because brothers I think is already at 750 and mountain is at INR500, 550. So I’m just trying to understand that is that 650 even happening or is that an error in the slide or?
Paramjit Singh Gill
No, no. As of now, 650 is a 500 and a 750. And if at all you’ve seen a 650, it will be — one of them would be 650 in some other states. Yeah.
Unidentified Participant
So just to clarify, there is no further product launch awaited.
Paramjit Singh Gill
The launches could be there, but there is no reference on it on the street. A lot of this will be there, but there is no reference on the sheet.
Unidentified Participant
Okay. The second question was more on the margin. So one is understood that the iMile business is around about 17%. One is also understood that the manufacturing business, a stable state of affairs would be about INR7 rupees EBITDA per liter. One is not very clear on what’s the steady-state margin of prestige and above. And if you could split it into IMFL and luxury or if you can just give a amalgamated number of what’s the steady-state margin for Prestige and above?
Nilanjan Sarkar
Yeah, Param, I can take that, please. Yeah. So I mean, is there something that we’ve been thinking about as well internally, we have to see how our portfolio mix, brand mix sort of stabilizes and when we’ve grown to a certain size. I think a good indication for now would be the EBITDA margin of our more established peers to use as an indicator to where we would like to go as and when we achieve some scale.
But right now it’s very difficult you know we not entirely sure how you know whether you know mountain olds will continue to surprise us or brothers will surprise us or will surprise us. So let’s wait-and-watch. I think step one is breakeven. We’ve demonstrated that two months in this quarter, we got to demonstrate that in many more months in this year and then let’s take it from there.
Unidentified Participant
So just to follow-up on that, what’s a steady-state for a good competitor for prestige and above.
Nilanjan Sarkar
Believe it’s between 15% and 18%, right, for DRGO,, Radico and EBI.
Unidentified Participant
So that means it’s no better than the IMIL part of the business.
Paramjit Singh Gill
So yeah, at a portfolio level, that’s what it is.
Unidentified Participant
Got it, got it. Okay. And, the last question is on the maze part. What you explained to us and painstakingly, you’ve repeated it a few times that you’re getting future contracts where it could be hopefully not escalating beyond ’24 2450. And currently, I’m assuming the lowest we procured during the harvest season in the east of the country is more around ’22 ’23 and now you’re saying this hedge is still November. Would it kind of protect us at those ’22, ’23 levels or would there be some escalation built-in and is there a risk to the INR7 rupees a liter?
Paramjit Singh Gill
I’m not sure I get your question.
Unidentified Participant
Okay. So presumably the lowest we get at is about INR22, INR23 rupees at the best of the harvest season. And this could at times escalate to INR26, INR27 rupees. And currently, you’ve got a forward contract hedge till November or December, you mentioned at no higher than INR24, INR50. Now given that we made INR6 rupees in supposedly the lowest procurement price quarter, is there a risk to the INR7 a liter even within our hedging that we’ve done till November?
Shekhar Swarup
No, no, no, no, no. So, yeah. So INR6 is — is at a capacity utilization of 80% — 81%. The greatest gain in our EBITDA per liter is going to come now from increasing capacity utilization. In terms of margins, you know, if you were at 90%, we would be north of INR7 in the last quarter. So in terms of margins, we are there or thereabouts. We’re going to be in this range in my view for the next few quarters easily. So yeah, I don’t see a significant risk-on the INR7 average.
Unidentified Participant
Okay. Got it. Thank you so very much and all the very best and keep up the great work.
Shekhar Swarup
Thank you.
Operator
Thank you. The next question is from the line of Mittal from MFC. Please go-ahead.
Unidentified Participant
Hello, sir. Thank you for the opportunity. I will make it fast. My first question is in continuation to the last con-call. We emphasized that for a manufacturing business, 40% of our capacity for and about 70% we have surplus for external sales. So on a more longer-term perspective, if you could just qualitatively give some hint that over a three, four year period, can we expect the internal consumption percentage to go somewhere at least near to 50%, 60% and my reasoning was the MS, please correct me on my understanding. The more we consume enter the more the margins
Unidentified Participant
Are dependent on the consumer business rather than being on the E&A realization, which is more fixed input cost-driven.
Shekhar Swarup
No, so you’re right, but the reason we kind of stopped kind of stopped tracking that number in so much detail and shifted it — shifted it to share of revenue from consumer is because we are now growing in states. Our consumer business is now growing in states where we are having to purchase alcohol. And we are able to grow in those states profitably because of our product mix. So yes, you’re right. I mean as Rajasthan grows, for example, we’re at about 80%, 85% internal capacity utilization there. We’ll go to 90% or 95% and maybe even in the future, we will be buying alcohol. So you’re absolutely right that it will increase, but it’s not that meaningful anymore because we are also growing in states where there is no production.
Unidentified Participant
Okay, okay. Okay. Because main reason for that is our scope for margin expansion is mainly there because in the manufacturing business, it’s quite stable because of the input cost.
Paramjit Singh Gill
But I would look at scope for margin expansion, not limited to our capacity. The scope for the consumer business is the Indian alcohol industry. It’s not the capacity of global splits.
Unidentified Participant
Okay, okay. And sir, the second and the last question is for the mall facility we set-up in Rajasthan. If you could just qualitatively give a clarity that in the premium and above segment, do you see mall being a significant contributor to the premium and above segment for us?
Paramjit Singh Gill
Yeah. I mean, it’s not a very large — it is a significant cost input perform, but it is more importantly a strategic investment for our consumer business to control our quality, to control the experience for our consumers as well as an essential raw-material for our single molds. Without producing molt spirit, you can’t sell single mold. So as we expand our luxury offerings, it enables us to do — to grow into that segment. But for our other sort of IMFL or non-single malt offerings, it is a strategic sort of reserve for managing quality of our products.
Unidentified Participant
Okay, okay, sir. Thanks a lot. Thanks a lot.
Operator
Thank you. The next question is from the line of Gautam, an individual Investor. Please go-ahead.
Unidentified Participant
So can you hear me?
Paramjit Singh Gill
Yes, please go-ahead.
Unidentified Participant
So what is the production down to 81%, not 100% in manufacturing.
Shekhar Swarup
So I spoke about that earlier as well. However, we had scaled down our capacities because of a low-margin environment. We’ve scaled them back up to 81% and we are hopeful of achieving more than 90 million as we go — go along in this year.
Unidentified Participant
Okay. So what can we expect for the upcoming quarters, mostly next quarter?
Shekhar Swarup
It’s difficult for me to give you a number right now, but we’re only going to grow this.
Unidentified Participant
Okay. It’s going to be north of 81.
Shekhar Swarup
Yes.
Unidentified Participant
Okay. Great. Thank you. All the best.
Operator
Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to Mr Sheikar Swaroo for closing comments.
Shekhar Swarup
Thank you all for joining us. Like always, we are available for further questions if you may have. Please feel free-to reach us directly or through our Investor Relations Agencies. Thank you again, and have a good evening.
Operator
Thank you. On behalf of Global Spirits Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines