Globus Spirits Limited (NSE: GLOBUSSPR) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Shekhar Swarup — Joint Managing Director & Executive Director
Paramjit Singh Gill — Chief Executive Officer, Consumer Division
Nilanjan Sarkar — Chief Financial Officer
Analysts:
Shasank Agarwal — Analyst
Soumya Shidhore — Analyst
Kiran — Analyst
Nitin Awasthi — Analyst
Sunil Jain — Analyst
Nigel Mascarenhas — Analyst
Dhwanil Desai — Analyst
Sarvesh Gupta — Analyst
Vijay Shah — Analyst
Deepak Ajmera — Analyst
Sneha Jain — Analyst
Aashish Upganlawar — Analyst
Mahin Bharadwaj — Analyst
Rohan Patel — Analyst
Sahil Jain — Analyst
Presentation:
Shekhar Swarup — Joint Managing Director & Executive Director
[Abruptly Started] per unit. We have a portfolio of eight brands across luxury and luxury prestige and other high-growth segments in eight other states besides UP, as well as a strong manufacturing footprint to enable consumer growth and generate incremental profits from the steady volume B2B or manufacturing business., our consumer business revenues continue their growth — growth — growing by an impressive 26% year-on-year, backed by 17% growth in the regular and other segment and a 186% growth in the Prestige and above segment. We continue to grow our reach and presence and Param will share more details on this segment shortly. Coming to our manufacturing business, it has contributed around 61% of our total revenues in the year gone by, down from 67% in FY ’24, reflecting the growing share of consumer revenues in the company., in Q4 FY ’25, we saw notable improvements in our manufacturing business with EBITDA margins rising to 3% from 1% in Q3. This positive trend is also reflected in our margin per liter, which increased to INR3 in Q4 FY ’25. This increase is despite capacity constraints in West Benghol, which were undertaken due to — due to upgradation activities. We expect this trend to continue and margins to stabilize around INR5 to INR7 rupees per liter with the current policy environment, I also expect reduced volatility. Some salient highlights of the current policy include of what they offer us are stable ethanol prices and strong volume offtake by oil marketing companies, sufficient raw-material availability in the country with options to use broken rice, FCI rice as well as males, which is a fast-growing crop in the country.. Coming to some strategic initiatives, we are pleased to share that in FY ’26, we successfully commenced production of corn oil from at our West Bengal facility. So some of the upgradations that were taking place were for this byproduct. Aside from giving us additional revenues, this also reduces — gives us buffer for any price volatility that may happen with raw-material in the future. Our multi-free distillery project in UP is progressing well with commissioning expected in Q3 FY ’26. The total capex over here is expected at about INR115 crores. The UP market, as mentioned earlier, is a key emerging growth area — a key growth area for the company, driven by strong demand across regular and others brands as well as prestige and above brands. I now request Param to talk more about the consumer business.
Paramjit Singh Gill — Chief Executive Officer, Consumer Division
Thank you,, and good afternoon, everyone. The Consumer business delivered a strong quarter, driven by our focused efforts on-brand expansion and deeper market penetration. In the regular and others category, the segment saw almost a 26% year-on-year revenue growth to INR221 crores in Q4 FY ’25. EBITDA margin in this category stood at 17%. In the coming quarters, the recent price hikes of about 4.35% in Rajasthan and an increase in Pradesh effective 1st April 2025 are expected to contribute positively to revenue and profitability in this category. For the full-year FY ’25, revenue grew by a robust 17% to INR864 crores with a healthy EBITDA margin of 15%. As previously shared, we have entered the Pradesh market, which has a sizable potential of almost 9 million cases a month. This strategic entry is expected to contribute positively to the volume growth beginning FY ’26. Now coming to the prestige and our categories. I’m pleased to share that we have achieved our best-ever year, delivering a strong 186% year-on-year revenue growth. Additionally, we surpassed our initial revenue guidance of INR100 crores from brands in this category for FY ’25 and touched the milestone revenue of almost INR129 crores. Our profitability has improved alongside strong volume growth, bringing UC closer to breakeven and Delhi already being in the green. The continued growth is driven by our strategic investments in efficiency and the success of innovative product launches. We successfully launched seven new brands, expanding our portfolio to 11 brands across the rescue, Gym, vodka and segments. Additionally, Ansa India Limited, a JV between Glover Spirus and Ansa recently entered the beer market with the launch of Carab 500 another strong year in Utra Pradesh. I’m also happy to share that while MountainO continues its journey, and are demonstrating potential to be our strong growth partners as we move forward. On luxury, we currently plan to expand our portfolio to four additional case this year and are also eyeing 3 as an opportunity. Our expansion strategy includes strengthening distribution networks further, enhancing brand visibility and recall and capitalizing on our portfolio offerings. I would now request Mr Nilanjan Sarkar to talk more about the financials. Thank you.
Nilanjan Sarkar — Chief Financial Officer
Thank you, sir. Good afternoon, everybody. Hope you had a chance to go through the results and the presentation that was uploaded on our website and the website of exchanges. Some highlights. Finance costs increased on a full-year basis by INR20 crores. This is on account of INR17 crore increase due to change in working capital mix. About 50% of the increase is attributable to increased financing for our P&L segment. The balance is for financing vendor-based discounting. Depreciation has increased by INR26 crores on account of capitalization of the expansion at Bengal and Jarkan, which was completed in Q1 of FY ’25. Other expenses, while most of the expenses have remained stable, the power and fuel, which is 40% of the other expenses have declined by 8%, overall other expenses declined by 2%. In FY ’24, the company shifted from old tax regime to new tax regime of 25.17%. As a result, there was a one-time write-back of deferred tax liability of INR26 crores. As a result, in the financial year ’25, the deferred tax amount has been regularized. Net profit attributable to non-controlling interest negative INR1.41 crores is a GSL share of 53.7% on non-diluted basis of the loss of both villages subsidiaries. The entry made a loss of INR2 crores as per business plan. However, there is a INR1 crore tax asset in the books which needed to be written-off as per standards as this was a non-cash adjustment made-for tax compliances. As balance sheet highlights, capital was in-progress, INR149 crores comprises of UP distillery and mall plant in Rajasthan. Plant is of INR29 crores has been commissioned and capitalized since then in Q1 of FY ’25, ’26 and the UP capacity expected in Q3. Change in other non-current assets is due to advances paid to suppliers for UP CapEx. Other current assets, this year in Rajasthan, there was an opportunity to start April strong by depositing excise duty in advance. Therefore, the company deposited INR110 crores as advanced excise duties. This was financed through short-term borrowings and thereafter has been recovering this from revenue — routine collections. We expect our current assets to return to normal within H1. Acceptances INR240 crores as explained in Mote 8, this is a supplier finance arrangement and is essentially a reclassification of trade payables. This year, our trade payables increased by INR112 crores due to more efficient purchase and early payment period. Borrowing position, long-term borrowings increased by INR73 crores due to capex. Total capex in the year gone by was INR161 crores. Finally, this year, we published segmental results of our standalone performance. Revenue includes XI duty, all expenses are identified, hence profit is reflective of segmental results. Excepts, presently, the allocation has been done of current assets of and Bihar and of and fixed assets, unallocable assets at those plant and machines where both business are being conducted. This is the start of our segment revenue — segment reporting journey and we look-forward to making this more identifiable between the segments and reduced assets. I now hand over the forum to the moderator for questions. Thank you.
Questions and Answers:
Operator
Thank you. Okay. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press R&1 on the telephone. If you wish to remove yourself from the question queue, you may press 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 assembled the first question is from the line of Ugarwal from Cisco. Please go ahead.
Shasank Agarwal
Hello. Hello.
Shekhar Swarup
Yes. Hi. Please go ahead.
Shasank Agarwal
Sir, I just have two questions. Sir, one is regarding the corn oil. So when you extract corn oil from the DDBS, does it degrade it in any way? And sir, what are your plans for entering the sector?
Shekhar Swarup
So it does degrade DDGS, but the net value is much higher. So that’s not a significant — it’s not a concern at all-in fact. No plans to enter biodiesel currently as I believe that market is not very profitable.
Shasank Agarwal
Okay. Thank you.
Operator
Thank you. The next question is from the line of Samya from Insightful Investments. Please go ahead.
Soumya Shidhore
Yeah. So questions are basically, which are the seven states of operations in IMFL and would you like to share some revenue guidance for FY ’26? These are my questions for IMFL. As far as you know, regular and others concerned, just wanted to ask a question on when would the production and sale commence in UP? And at what volumes in UP do we really breakeven? Thank you.
Shekhar Swarup
So Param, could you take those, please?
Paramjit Singh Gill
So the first point of yeah, yeah, I’m there. So the seven states some that we’re talking about are Delhi, UP,, Haryana, Punjab, Rajasthan, Goa, yeah. So those are seven states we are talking about. The revenue guidance, we don’t give forward revenue guidance as we have outlined on a few occasions, but we are very confident that the RMFL growth will continue on a very robust trajectory in the coming year as well as we are confident that our action plans are continuing to yield results. Coming to UP, if we continue on the trajectory of UP, we are expecting ’25 ’26 itself to be the breakeven year. It could be give or take, but it will — we are expecting it to be well within the zone as we sure.
Soumya Shidhore
So, sorry, but in the previous call, you did mention that at least 1/4 in INFL for FY ’26, if not more, will at least be an INR80 crore revenue.
Paramjit Singh Gill
How much?
Soumya Shidhore
80. I think in the previous quarter you did mention that at least the exit will be INR80 crores for prestige and above in FY ’26 for one of the quarters, if not more
Paramjit Singh Gill
80 crores in a quarter.
Soumya Shidhore
Yes, sir.
Paramjit Singh Gill
I assure you said that because I do not, because we were aiming for crossing INR100 crores in the whole of ’24.
Soumya Shidhore
No, I’m talking about the coming year, sir, FY ’26,
Paramjit Singh Gill
’26, as of now, we are not giving any quarter-wise guidance. We expect a healthy revenue on maintaining that. I do not recall all. If the statement was made, please do keep a note of it. I do not recollect having made this if it was made, surely it would have been made. We are expecting a very healthy revenue growth as we have been continuing. And I mean, ideally, we would wish to surprise everybody we are beating the growth internal growth aspirations as well, but we do not identify giving growth revenues with any breakup.
Soumya Shidhore
No, only for the prestige and above, I think it is in terms — because
Paramjit Singh Gill
We would not be able to share any growth
Shekhar Swarup
Let me comment here. So if we’ve given a target in the past, we stand-by it. But currently, we are not in a position to give any further guidance.
Soumya Shidhore
But growth rates continue to look pretty strong, right? So there is no — I mean, obviously, we’ve increased seven markets.
Shekhar Swarup
Yeah Growth rates are looking pretty strong.
Paramjit Singh Gill
Yes, they’re looking very favorable. Yes, please.
Soumya Shidhore
Correct. Thank you. Bye.
Operator
Thank you. The next question is from the line of Kiran from TableTree Capital. Please go-ahead.
Kiran
Thank you for the opportunity, sir, and congratulations on a public set of results, especially in regular. Sir, two questions and go one-by-one. On the Prestiging above, if you could tell us the star brands that are leading the stupid growth and also will we be EBITDA-positive in FY ’26 or will that be one more year to FY ’27? That’s the first question on IMFL.
Paramjit Singh Gill
So yes, second, maybe just down. Yeah. So the TAR brands, obviously at this point in time in terms of revenue and volumes, Mountain Oak leads the pack, but we have very strong support for that brand coming with — along with ski as well as brothers and company whiskey because as you will agree that over the medium-term, we would need much more than one brand, we need a bouquet of a few strong powerful brands, but as we talk, Mountain leads the brand. We are expecting, you know, as we had earlier said, we still stand that for every individual stage, the third full-year of its operation, we ideally would want to reach the breakeven for that stage. We are expecting our journey in ’25, ’26 to be in the zone of breakup, breakeven and let’s see closer to the town when we reach home.
Kiran
Yeah. Got it, sir. Sir, second question is, I mean, I actually have a clarifying question here just on the prestige that you just shared about. Sir, on — if I just calculate for the year, right, INR130 crore revenue for just for prestigen about sir, INR130 crore revenue, 0.91 million cases, if I just divide, it’s coming to about INR1,400 rupees, right? However the mountain of North Key and brothers are in the 650 to 70 range. So how do I — I mean, this is the highest-volume, right? So how do I account for like it’s almost double the MRP.
Paramjit Singh Gill
So I can just give you a guidance. The Mountain of whiskey is not in the 650 to 700 range. It is far more than that.
Shekhar Swarup
That I think there’s one question. I just want to come in here, please.
Paramjit Singh Gill
Yeah. Yeah.
Shekhar Swarup
So this is our net sales value around INR1,400 rupees. Our net sales value is a rupees per case figure exclusive of excise duty and VAT
Paramjit Singh Gill
And accounts and accounts.
Shekhar Swarup
And certain discounts in the market. The INR650 or so rupee number you said, I believe is the per bottle retail price.
Kiran
Right.
Shekhar Swarup
So that number will never tally up with our books because there is a huge excise duty and taxation discount also, but the large amount is excise duty and GAT, which is collected by the state government and is not part of our revenues. Our customer is the wholesaler and we bill to the wholesaler at about INR1,400 average for last year’s INR130 crore revenue
Kiran
Got it sir. That’s clarified.
Shekhar Swarup
Yeah. And the first number is the bottle number and the 1,400 is the per case number.
Kiran
Yeah, yeah. Got it. Got it.
Shekhar Swarup
And then last point here. This is the same if you look at the other businesses in our industry, it is the same accounting principles that are followed across all the companies.
Kiran
Got it. Got it. Perfect, sir. That answers. Sir, one second question on ethanol, sir. The manufacturing segment, we have a 300 million liters of capacity. Would our realization inch back to INR7 per liter, and would we be kind of doing 90% capacity utilization for FY ’26? Is that
Shekhar Swarup
Around INR300 million is our total installed capacity and some of it is used for our consumer business. Believe around 70% or so is surplus, which we use for ethanol as well as sales as ENA to other beverage companies. Further, that split is approximately 50-50, but changes quarter-to-quarter depending on our selling strategies. Overall of the surplus capacity that I mentioned, which is around 70%. We expect this year to stabilize between INR5 and INR7.
Kiran
Got it, sir. Got it. Especially because of the SCIs and everything else, right? Are you —
Shekhar Swarup
No, I’m not in a position to give guidance on which raw-material we’ll be using, because that will change from time-to-time. But I think the net result of the policy is that there is now sufficient raw-material and therefore, raw-material prices are going to remain cool. But of course, there will be ups and downs, but generally, it will remain cool and my expectation is 5% to 7% is the window that we should stabilize at. And thereafter, it should remain in that window despite whatever volatility that comes. That is the impact of this current policy.
Kiran
Got it. Got it. Perfect, sir. That answers my question. Thank you so much.
Operator
Thank you. The next question is from the line of Nitin Avesti from InCred. Please go ahead.
Nitin Awasthi
I wanted to discuss on two aspects. Firstly, on the UP market. We have now done iron business in that market for some time, around two months, if I’m not wrong. Would that experience that we gained in the last two months help us kind of in the coming year what we can target from the IMR segment in that market.
Shekhar Swarup
So as I said, we don’t give a forward-looking guidance, but yes, we are — the very purpose of entering that largest opportunity market in the IMIL segment has been to carve-out our share. And at this point of time, we are fairly positive about the journey as we have progressed and we have called out that we will start seeing UP contributing in that segment from the beginning of this quarter. Yeah. It is difficult to give more sharper projections going-forward at this stage.
Nitin Awasthi
Understood, sir. So continuing on the same product, which you are currently bottling, however, our ENA is not available in UP because the plant is not up in UP. Are we getting our own ENA from other of ours and getting it into UP or are we buying E&A from outside players in UP?
Shekhar Swarup
So at this point of time, we are buying ENA from other players within UP because this is the environment at this point of time that is more favorable. We are open to all options and we keep exercising our choice on a case-to-case basis when we procure. So whatever is more efficient for our business.
Nitin Awasthi
Understood. And as of now, there is no shortage for ENA required for the IMIR unit?
Shekhar Swarup
No, no shortage at this point.
Nitin Awasthi
Understood. Sir, second part, I wanted to understand the biodiesel entry that we have got into. What is the current rates where your — sorry, biodiesel has gone. Yeah. But I’m sure that the buyer who is buying corn oil from you is in the biodiesel business, hence the biodiesel tag. So the corn oil that we’re currently supplying to the major players in the biodiesel industry who are there in West Bengal, who — I mean, what kind of rates are you realizing for that?
Shekhar Swarup
So we are — what I can confirm is that our customers are not purchasing corn oil for biodiesel we are supplying this to animal, the animal nutrition business as a fat additive this product was being — was going into the animal feed industry in any case when it wasn’t being extracted as part of DDGS, by removing it from DDGS, we are enhancing the overall value of our entire byproducts bucket largely because fat gets a higher-value if it’s sold separately. So that’s what’s happening. We are not selling this to biodiesel at all right now. So as far as I understand, I don’t understand the biodiesel business very well, but from the work that we’ve done, I believe biodiesel is completely unviable currently. So there’s nothing happening on that side..
Nitin Awasthi
Understood, sir. Sir, last thing I wanted to ask was we have a.
Operator
MR. Nitin, may we request that you return to the question queue for a follow-up.
Nitin Awasthi
Okay. Thank you.
Operator
Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Sunil Jain from Nirmal Bang Securities. Please go-ahead.
Sunil Jain
Yeah, congrats on the improved results. Sir, my question relates to, first of all, if you can give data like what was the manufacture ng volume in this quarter?
Shekhar Swarup
And, could you take that?
Nilanjan Sarkar
Yeah. The manufacturing volume for bulk alcohol for Q4 FY ’25 is once again. The production was 64.36 million liters that was for bulk alcohol
Sunil Jain
And sales force, sir.
Nilanjan Sarkar
Sales was 50 million liters.
Sunil Jain
Okay. And sir, you had said that you got some price increase in Rajasthan and definitely E&A price — manufacturing cost must be coming down. So are we going to get benefit on the margins in the consumer business also in the coming quarters.
Shekhar Swarup
So yeah, let me come in here. There have been price increases last year and in the current year. So last year’s price increases did not fully offset the increase in costs took place last year. So some of the increase this year will help in that. But yeah, net-net, margins will grow in Rajasthan as well.
Sunil Jain
Yeah. If you compare it from the 4th-quarter, you will get the price increase also and the cost of production will also
Shekhar Swarup
Yes, yes. Yes, we compare it to Q4, yes.
Sunil Jain
Okay, great. Thank you very much, sir.
Operator
Thank you. The next question is from the line of Nigel from Everflow Partners. Please go-ahead.
Nigel Mascarenhas
Good afternoon, sir. Thank you for the opportunity. Couple of questions from my end. Firstly, can you explain why you expect the margin profile for the manufacturing business to stabilize from here on? What has changed relative to earlier? And how confident are you about these margins sustaining?
Shekhar Swarup
All right. So what has changed earlier is that there is a very large supply available of raw-material from FCI at a fixed-price. And-or rather at a price where we are able to earn a fixed margin because the ethanol price is also fixed on the other side as a result, if if raw-material prices what is available in the open-market goes up very steeply, then distributories have the ability to convert to FCI. So I do — that is why I feel that raw-material prices will now be range-bound and volatility will reduce?
Nigel Mascarenhas
Got it, got it. And my second question was what sort of volumes and revenue do you expect for the manufacturing business in the coming year?
Shekhar Swarup
And what sort of revenues you said and what else
Nigel Mascarenhas
And the volume.
Shekhar Swarup
So we have to utilize our capacities. Our capacity base is — is fixed at around 300 million liters. We have to utilize our capacities. We’ve demonstrated a very good track-record at utilizing these capacities. So our internal targets are at 90 plus percent capacity utilization through the year. Revenue is a function of what ethanol grade we supply. There are three different grades, the FCI grade, the broken rice grade and the maze grade and the prices are significantly different from INR58 to INR72 rupees. So to that extent, I cannot tell you — I cannot give you a revenue guidance, but I can give you a capacity utilize — utilization guidance, which is — which should be over 90%.
Nigel Mascarenhas
Got it. Thank you, sir.
Operator
Thank you. The next question is from the line of Dhwanil Desai from Total Capital. Please go-ahead.
Dhwanil Desai
Hi, good afternoon, everyone. Sir, my first question is on the IMIL side. So you know we are planning to grow at a decent pace in the UP market. So sir, if you can talk a bit about the competitive dynamics because both and India Glycol are well-entrenched player there and generally very difficult to enter a new state and scale. So what is our strategy around that? What gives us confidence that we’ll be able to scale on that market in the UP.
Shekhar Swarup
Yeah. Param, could you take that?
Paramjit Singh Gill
Yeah. Thanks, Ranil. So obviously, whenever we are entering the market, there is always competition who is active and every player wants to win market-share. And you are right, among the formidable players, IGL and definitely are the correct names. But as I said, the same thing also applies to IFL across every state. So it’s no different in our alcohol industry regardless of the segment. Our strategy is obviously build route-to-market and do the basics, get your liquid delivery trials right and then keep on expanding our presence and it has worked for us in IMFL and there is no reason to believe that it is not going to drive us home in IMIL segment as well. Well and we are also expanding our offerings in the IMI segment to try and cover a significant part of the profile of the consumer as it exists today. So our confidence comes from the fact that we have a plan, we know the market reality, we know the ground rules and it is. It is true. One has to fight for every inch on-the-ground and that’s part for the course that there’s nothing more to say on that account. We are very strong on our strategy of to-market and we are very confident that we’ll be able to land it. Of course, our packaging and liquid delivery is very, very strong, well-received and we are very confident that the consumer is going to continue accepting it and the initial results are already there because we have been in the market for over three months now.
Dhwanil Desai
Got it, thanks, thanks for elaborate answer. One more question on IMR IMRL. So I think we have guided in the past that this segment typically we should assume anywhere from 15% to 17% EBITDA margin. We are currently around the upper range of that number. Now with the price hikes and the lower RM cost, we are expecting some margin delta coming on the upside. So you know, are we — should we think about this number you know as a steady-state improve from 17% to a higher number or we think it may be a yearly phenomenon that over the next two, three years, we still should think about 15% to 17% range.
Shekhar Swarup
No, I do you know, for the next year or two feel that the higher-end of that range is the level that we will be at. But and once, I cannot forecast beyond a couple of years right now, I do think that upper-end of that range is where we should be right now. I don’t foresee any reason for a structural change to a 20% or a 25% kind of margin profile, 17, 16%, 18%, I think that’s a good range for us to be at.
Dhwanil Desai
Got it. Got it. And last question on IMFL side. So I think you have done very well on this segment. We have crossed on INR100 crore very comfortably this year. But looking out, let’s say, more from three to five-year perspective, currently we have so many brands across so many different liquor types across different price points. So from here to, let’s say, INR500 crore as and when it happens, do you think that this portfolio will consolidate or and two or three brands will drive the incremental growth after, let’s say, a year or so?
Shekhar Swarup
Can I take?
Paramjit Singh Gill
Yeah, yes, yes.
Shekhar Swarup
Thanks. So you know, the way we approach our IMFL business is more — is something that we used to talk about earlier, creating runways and getting thereafter airplanes to land and take-off. And runways being the distribution system and airplanes, of course, being the brands. So therefore, our brand portfolio is created based on opportunities that exist in our states. So as opposed to creating a strategy where we first create a brand and then we maximize where the brand is going to go. This strategy has been created based on our model of first distribution and then brands. But as we go-forward, it’s possible that one or two brands gain a little more momentum as we’re seeing already with Mountain O and a few others that Param spoke about. It’s also possible that we do launch a few more brands before perhaps you know, growing some of these even further. So it is a strategy based on opportunities that exist in states. The next thing I want to say is, aside from Uttar Pradesh, currently, there is no market where we have all of our brands present. Pradesh is the only state that offers that kind of opportunity. So we are very careful on selecting which brands go out into which markets is based on the opportunities that exist in those markets.
Dhwanil Desai
But thank you. Thanks for our elaborate answer and wish you all the best. Thank you.
Operator
Thank you. The next question is from the line of Sarvesh Gupta from Aximal Capital. Please go-ahead.
Sarvesh Gupta
Good afternoon, sir, and thanks a lot for giving the opportunity. Sir, first question is on prestige and above while want benefit very well for the full-year. But in-quarter four, we did see some slowdown compared to the previous quarter in terms of the growth, etc. So is there — is this like a seasonality impact or is there some other reason why you know, like the volumes were down by around 30 odd percent compared to the previous quarter.
Paramjit Singh Gill
Thanks, Mrs so you know what is the — March-April is when most of the excise policies transition into a new policy from 1st of April. And obviously that is the time this quarter generally starts reflecting how the policy change is happening. Both two big states very obviously eventually went for a policy extension, a temporary extension of three months and UP, obviously the route-to-market made some significant policy changes. As a result, in addition to that as the financial year of excise starts coming to a closure, generally organizations work towards securing their credits, securing their inventories because many freight partners may leave and some of them may re-enter and many of them may not re-enter. So it is a time to consolidate QSS and then again relaunch. And it happens in most of the Q4s in general, because we are a growing concern, sometimes may look less advertent and more adverted, but it is absolutely a natural consequence of how Q4 generally ends up.
Sarvesh Gupta
Okay. Okay. Well and secondly, since we have expanded the coron oil thing in West Bengal, so when we say that in manufacturing, we are expecting INR5 to INR7 liter EBIT per liter EBITDA. Then on-top of it, all these applications, etc., where we have spent money, how much more can we get because of these new products and
Shekhar Swarup
You’re very right. It’s a great question. So you know my belief is my belief is that any value additions over a long-term will start getting get adjusted into commodity prices therefore, my guidance still remains within that range. The entire manufacturing business needs to be seen as a INR5 to INR7 EBITDA business, we are committed to you know, making this business less volatile, but that does not mean that if there are greater opportunities, we will avoid them. Corn oil is certainly a greater opportunity. Currently we are running it only at West Bengal. We are waiting to deploy it at Bihar and. My belief is that like I said, the long-term margin in this business is at INR5 to INR7. Yeah.
Sarvesh Gupta
Okay. And given all of these, have we decided now to put a stop on in terms of the overall expansion of the manufacturing? So now have we decided that we would only be sort of using incrementally these capacities for our consumer business and not be investing more into
Shekhar Swarup
Just we announced a decision. I think now almost two years ago, so that’s not a — we’ve stopped expanding further capacities. I believe it was two years, maybe even more and we are not going to take-up further capex in ethanol — growing ethanol and ENA capacities, there will be capex required for upgradation or you know, certain maintenance capex. Aside from that, there is going to be no greenfield on brownfield expansions.
Sarvesh Gupta
Okay. And the final one on consumer, regular and others. So what we’ve seen is like 4%, 5% price hikes in Rajasthar last year and this year. And on-top of that, I think we had earlier guided for a single-digit sort of a growth in volumes. So hence, should it be like 11%, 12% business with 17% sort 17% EBITDA margin. Is that the sort of the assumption for the next two, three years?
Shekhar Swarup
See, Rajasthan continues to grow pretty well, both volume and revenue growth in terms of volumes will slow-down, but that slowdown isn’t really happening yet. I think the slowdown would mean 6%, 7% type of volume growth. We are seeing even in the current year, veryish very new year, but we’re seeing, you know, good volume growth coming in even in the new year. Let’s see how that sustains in as months go by. But from a longer-term point-of-view, 5% to 7% volume growth in Rajasthan, with a 10% of NSV growth, but that might be split into two years. So it won’t happen 10% per year. It will happen maybe 4.5% and then 4.5% or just 10% in two years. That really depends on how pricing strategy is done at the stage. Last few years, we’ve seen regular increases every year. So 10% every two years in terms of price and 5% to 7% volume growth rate is what my expectation is from the state, but currently it is growing faster than that.
Sarvesh Gupta
Okay. The —
Shekhar Swarup
In this category, the high-growth is going to come from new markets such as Uttar Pradesh, which is our prime focus and possibly in the more medium-term, we have two or three other states that are currently in wait-and-watch and perhaps in the medium-term, those will become into growth markets as well.
Sarvesh Gupta
And sir, Only
Operator
Sorry to interrupt Mr Sarvesh, would we request that you return to the question queue for a follow-up question?.
Sarvesh Gupta
Okay Thank you.
Operator
The next question is from the line of Vijay Shah from Insightful Investment Managers. Please go-ahead.
Vijay Shah
Thank you. And thank you for giving me the opportunity, sir. So just wanted to check if we have any guidance for the level of debt that we plan to have by the end of next year. I believe this year our debt has gone up. I understand that you have explained that some of it has got reversed and will get reversed by first-half. But if there is any guidance that we can put out that what is likely to be debt over the next 12 months?
Shekhar Swarup
So right now, we don’t have a guidance for that, but thank you for that suggestion. We’ll work on that guidance in — and give a number in H1.
Vijay Shah
Sure. And second question, sir, from my side is that given that relative to what the opportunity is for us in the consumer business, which is the prestige and above, should we first be looking at beer or rather than should we first be looking at growing some of these existing brands and and all of that given that most people have found it very difficult to make money in India.
Shekhar Swarup
I mean just very quickly for me, I think it comes back to my analogy of runways and airplanes. But Faram, if you want to say anything about that we —
Paramjit Singh Gill
Yeah, so thanks, Vijay. We are not trading one for the other. We rest assured we are — your question is a valid concern from our possibility, but we are not looking at one or the other. We have enough systems in-place where both will — we want both of them to continue on a very robust setting of.
Vijay Shah
Yeah. But no, I appreciate that, sir. But end-of-the day, there is a — and there is a limit to the marketing dollars that we have, right? And it’s a choice we have to make in terms of where we would like to allocate that, because we also have a guidance that we should look to this year.
Paramjit Singh Gill
No, no, absolutely. As a point well taken. See, for beer, we have just made an entry in one market with one pack. So we have one pack, one state, one brand. So it is not — yeah, it is not the voice is absolutely appreciated. It is not a very significant investment. It is to enter the market, make sure we get our fundamentals right, get the footing. And meanwhile, we are very actively continuing to work towards the breakeven scenario, which is what we are striving for. And your point and thought is well.
Shekhar Swarup
Our primary growth engine is going to be UP the entire portfolio of brands, prestige and above brands in the other states, those two are our primary growth engines for the first two, three years or the next two, three years.
Paramjit Singh Gill
Absolutely.
Vijay Shah
So I can just ask one last question, sir. What are the stakes that we plan to enter this year, which are the stakes?
Paramjit Singh Gill
So we don’t — we don’t renew that. We definitely see ourselves entering about four luxury states and two mainstream states. We will start feeding them and start building them. We don’t — because obviously the information is public and we just want to keep it close to our until we actually enter the state.
Vijay Shah
Fair enough. Fair. Thank you so much. All the best.
Paramjit Singh Gill
Thank you,.
Operator
Thank you. The next question is from the line of Deepak Ajmera from IG India. Please go-ahead.
Deepak Ajmera
Thanks for the opportunity. On the balance sheet side, in the presentation, page number 25, there is acceptances, what is — that’s a — what that means asset tenses of INR240 crores. And second question is, next year, we will be generating a significant EBITDA, maybe in excess of INR200 crore or INR250 crores. So what will be the utilization of that EBITDA?
Shekhar Swarup
And, can you talk about the first question? I’ll talk about the second piece.
Nilanjan Sarkar
Okay. Acceptances, as explained in my opening speech is basically a supplier finance management that we have entered into and a reclassification of trade payables that is basically acceptances. We have reclassified our trade payables into trade payables and acceptances, which is basically supplier finance arrangements.
Deepak Ajmera
So we have any liability or it is like the funded by some NBFC. What sort of arrangement is this?
Shekhar Swarup
No, no, so these are trade payables, sir the way to think about it, it is that these are trade payables these are the same bills which would have been part of trade payables in the previous year. This year, we have reorganized the way we are we are doing purchases where we have introduced an early pay system where suppliers can discount their bills. If they are giving us a higher discount than what is the bank interest-rate, then the bank will give us that money, we will give it — we will give it to the suppliers and we will — we will earn an additional profit after accounting for interest cost of the bank. In order to structure these bills in this manner, we have to classify that not as trade payables, but as acceptances.
Deepak Ajmera
Got it. Got it. Thank you.
Shekhar Swarup
With regard to your second question about the use of cash — use of cash-flow, it was asked earlier on this call as well, what would be your debt guidance? We currently do not have one, but a lot of the money will get used to pay-down debt. And of course, some of it will be returned to shareholders. But in the H1 balance sheet, we will give you more insight into this.
Deepak Ajmera
Got it. Last question from my side is, since we are growing and above, I mean, rather than returning it to shareholders or debt is also comfortable level. So increased spend on the prestige and above, whether that will help in growing it fast or you would like to reduce the debt and return to
Shekhar Swarup
So there should be significant cash-flow this year, more than what can be invested in the business in one year. The cash will be used in the combination of creating more buffer on the balance sheet for future use perhaps a debt paydown and shareholders. So these are various strategies. I don’t have a commentary on how it will get utilized as a breakup. But yes, what I can say is prestige and above business does not require more money and it will not necessarily get to be used for faster growth. So please keep an eye out in H1, we will give a guidance on this.
Deepak Ajmera
Thank you.
Operator
Thank you. The next question is from the line of Neha Jain from SKS Capital. Please go-ahead
Sneha Jain
Hello, am I audible?
Shekhar Swarup
Yes. Please go-ahead.
Operator
You’re audible.
Sneha Jain
Thank you for the opportunity. Will there be a positive or negative impact that you can see commensurpating from the UK.
Shekhar Swarup
It’s a little bit early for us. We’ve been discussing that internally as well. It’s a little bit early to comment on that. There are various views on how it may get implemented you know, combination of increasing margins of companies increase in taxation by states. So you know we have to see how it plays out but our business is based on our brands. Our brands have got good acceptance across various price points and there’s going to be a space for everybody in the new market environment. What I can certainly say is it’s going to save on our input costs. You know the scotch that we buy is going to become cheaper for sure and that will aid in profitability. None of that is currently budgeted because we don’t know exactly how it’s going to get implemented. So I think we’ll have more information on this after the first-half of this year.
Paramjit Singh Gill
And then my take is the impact of this is likely to spill into FY ’27 than in the current year because there is still a long gap between funding the agreement and laying down the rules and the guidance for it to actually start happening?
Sneha Jain
Okay. So case, you do not see a very competitive intensity increasing from here.
Paramjit Singh Gill
No, in the short-term, there is really no visible indicator at this point of time and we will all learn as we go further down the road. Yeah.
Sneha Jain
That’s. And sir, any indication that we’ve seen from the government regarding the ethanol pricing, any increase or any talks?
Shekhar Swarup
No, it’s stable right now. We are in the middle of ethanol tender. The ethanol tender period starts first November every year for 12 months. So we’ve only had five months or so that have gone by in the current ethanol year. So the status quo currently and frankly, in the current policy and pricing environment, I just hope for more stability, which we will certainly have till October and we will see after that.
Sneha Jain
Okay. Thank you so much. That’s from my
Operator
Thank you. The next question is from the line of Ashish from InvesQ PMS. Please go-ahead.
Aashish Upganlawar
Yeah. Thank you for this. Sir, I might have missed your comments on the margin, but I think you said that historically, the way we used to have 15% plus margins, you are seeing that to come in maybe the next year, is it or how does the roadmap for margin improvement look like?
Shekhar Swarup
We haven’t given an overall margin guidance, but we have given a segmental guidance from we can — you could roll that up into overall, if you like. We’ve said that around about breakeven levels with a slight negative for the prestige and above, we’ve said our margins to be around 17% levels for the regular and other segment and for the manufacturing business rather than a percentage because we don’t know the revenue breakup yet, the margin per liter would be around INR5 to INR7 per liter.
Aashish Upganlawar
Okay. So any problem that happened with the raw materials are going just few months back or last year basically, that was the only difference between our historical margins and what we were last year, right? I mean, nothing major.
Shekhar Swarup
No, I mean the big change was that, but as time passes, environment changes, I think I think our industry, the — will enjoy INR5 to INR7 rupees going-forward. We’ve seen periods of even higher profitability in the past, but our historical average is INR7. I am revising that to say between INR5 and INR7 going-forward.
Aashish Upganlawar
Okay. Okay. Sure, sir. Thank you so much and all the best.
Shekhar Swarup
Thank you.
Operator
Thank you. The next question is from the line of Mahen Bhatwaj from Banyan Capital. Please go-ahead.
Mahin Bharadwaj
Hi, sir, the question I had was you said that the manufacturing business, right, 70% of what’s produced is sold, right, and you said you’ll do about 5% to 7% EBITDA per liter on that. The remaining 30% that’s used internally for the consumer business. I wanted to understand when you sell that and you consume that yourself, what kind of margins would you be doing on basis per liter in that? Because when you go from zero to two to five to 7%, there’s a good amount of increase in that. So will that margin be proven to the consumer business or the manufacturing business, how do you look at it?
Shekhar Swarup
And currently we come for — so there are two scenarios. One scenario is where the factory is a dedicated consumer premise. So for example, Rajasthan, where 85% or so of capacity is utilized by the consumer business, there we transfer the alcohol at-cost, net of fixed expenses and everything. But in other factories where, where predominantly we are selling — we’re engaging predominantly manufacturing business and our internal consumption is 10% or 20% or thereabouts. There we transfer at-market prices.
Mahin Bharadwaj
Okay. Okay. Thank you. And also just to understand, at one point said that the margin should be between INR6 to INR9 when it comes to per liter in the manufacturing business five to seven. So is the?
Shekhar Swarup
Yeah, my belief is INR5 to 7% is the long-term sort of average that we’re going to get now.
Mahin Bharadwaj
Thank you.
Shekhar Swarup
Thank you.
Operator
Thank you. The next question is from the line of Rohan Patel from Total Capital. Please go-ahead.
Rohan Patel
Hello. Thanks for the opportunity. Am I audible?
Shekhar Swarup
You are audible, but your line not missed ones.
Operator
Sorry to interrupt, Mr Rohan, I would request you to move a bit closer to your phone or else use a headset also.
Rohan Patel
Yeah. So now is it audible?
Shekhar Swarup
Yes. Thank you.
Rohan Patel
Yes. Hi, yes, most of my questions have been answered. Just last question. It’s regarding IMIL, we are planning big and we are also as a organization focusing on UP. In IMIL, we have looked at — it’s been focused with a few legacy players and what we have seen in IMIL is a regulated business licensed and has a. So can you just share with us your go-to-market strategy like
Shekhar Swarup
It is not license — it is licensed, but as much as any other alcohol business or any other alcohol brands are, it is not a quota business retailers, wholesalers, consumers are free-to buy whichever brand they want and as much of it, but it is licensed just like any other alcohol business is in India okay so you know that was just a correction on the assumptions about that business but Param I know you spent some time talking about the go-to-market here, but perhaps you could repeat it, please.
Paramjit Singh Gill
Yeah, so Mr, there are a lot of similarities actually with our IMFL as compared to IML and the sense that the consumer goes to a retail outlet, he has a choice to exercise on which brand he wants to take and the outlet, almost most of the outlets have more than a couple of offerings available for the consumer has. So really not much changes is just that the sheer number of consumers are huge, the sheer flow-through is used and it the consumption patterns are slightly different in terms of the regularity of the consumption pattern. So the effort — intensity of the effort is. That is there is not any unique difference in strategy between sort of regular range and IMIL brand that one can very distinctly carve-out a strategy. Our core strategy stays the same, build good to-market, get the consumer to experience our brand once, twice X number of times and we are confident that the consumer will start respecting our offering for its premiumness and value. So nothing really changes. It is the FMCG business there as well contrary to many of us thinking.
Rohan Patel
Okay. So if you can just give us insight regarding you might be having a projection like considering it’s a 10 million cases per month market, like what are you targeting to achieve in, say, next three years. So I wish I got target size you want to grab.
Paramjit Singh Gill
So it is difficult. We do not as a principal give forward guidances, but you know the temptation we see is staring at all of us, there is almost a 9 million cases a month market and we would want to be a recognized player in times to come in that segment. And we intend delivering very robust growth, very difficult as I called out earlier, as I think we do not issue forward guidances on either the shares or the volumes.
Rohan Patel
Okay. Okay. And next question regarding margins in IMIL considering that we are having a good year this year considering the cost of production as well as the price increases. So as we are also expanding in Uttar Pradesh market, do we see our margins being in the 16% to 17% range in IMIR or due to our expansion, it might dilute?
Shekhar Swarup
Yeah. I can take this one. So currently, our UP margins are very low because we are purchasing our alcohol. As you’re aware, we are only running the bottling plants there. We expect to commission our distinary in Ukra Pradesh in Q3, as I had mentioned in my opening remarks, and that’s when UP margins will start looking similar to our Rajasthan margins. Rajasthan margins should be at the upper-end of our guidance, so 17%, maybe even a little higher this year. But long-term, I would say you see this entire regular and others business at about 16% 17% margin business.
Rohan Patel
Okay. And just a follow-on question on margin. Sir, what we have understood is like the margins that we are talking about achieving in UP is similar to the Rajasthan, which is 16% 17%. So in my — in my view, we haven’t seen many of companies, legacy players who have higher market-share doing 16% 17% margin. So what gives you the confidence that you will be going to get an 16%, 17% margin
Shekhar Swarup
We are already doing the business, right? So I think the confidence that we have on margins is much higher than what we have on giving you volume projections. Producing alcohol, bottling alcohol is very much a core strength of global spirits. I cannot comment on the margins of other people, but we are confident of our margins for sure.
Rohan Patel
Okay. Yeah. Okay. Thanks for answering all the questions, patient. Yeah. Wish you all the best for the question.
Operator
Thank you. The next question is from the line of Sahil Jain from Enigma Investment Partners. Please go-ahead.
Sahil Jain
Yeah, hi, sir. Thank you for the opportunity. Just had one question, sir. What was the total contribution of the buy products given this year at the board? HS
Shekhar Swarup
Contribution in terms of revenue?
Sahil Jain
Yes, in terms of revenue for manufacturing.
Shekhar Swarup
Okay. In the, do you have that?
Nilanjan Sarkar
No, I don’t have it right now, but I can give it. I don’t have it right now.
Shekhar Swarup
We don’t really track that as a separate revenue item. It’s for us it’s a — it’s a cost card for ENA or ethanol, which includes the realization from byproducts. But it will be in the range, my sense is it will be in the range of 7% to 9%. Yeah 7%, 8%, yeah.
Nilanjan Sarkar
It’s a 6%, right. sorry, your line is breaking up okay,
Sahil Jain
Is it fine now?
Operator
Sorry, sorry to interrupt, Mr I would request you to use a handset or move closer to the phone.
Sahil Jain
Yeah, is it — is it better now?
Shekhar Swarup
Yes. Yes. Thank you.
Sahil Jain
Yeah. So regarding the volatility, as you mentioned that the FCI availability will be a lot. But like would be sources that transaction more towards the side of the raw-material going-forward, but the prior raw-material as we move forward.
Shekhar Swarup
So your line is a little unstable, but I think I’ve got the gist of your question. So my point about FCI is that the FCI offered a floor to margins. And because of that floor, more raw materials, therefore also have a floor to what margins can come from there, okay? FCI is a fixed-price raw-material and a fixed-price ethanol and fixed ethanol price. So those margins are known. They’re not going to go up or come down. On the other hand, with intelligent purchasing of maize, with all the work that we’ve been doing in terms of storage of maize, upgradation of our plants to be maize compliant, you know, we believe we can earn higher margins on maize rather than FCI. So that’s why I say that volatility is reduced and average margins are between 5 and 7% that’s the logic around it.
Sahil Jain
Thank you so much thank you. Thank you.
Operator
Thank you. As there are no further questions, I would now like to hand the conference over to Mr Sheikar Swaru for closing comments.
Shekhar Swarup
Right. Thank you everyone for joining our call. We remain available to answer any queries that you may have. Please reach-out to our Investor Relations team or directly to us. Contact details are mentioned on our presentation and website. Thank you again and have a good day.
Operator
Thank you on behalf of Global Spirits Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line