Globus Spirits Ltd (GLOBUSSPR) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator (MOFSL): Ladies and gentlemen, good day, and welcome to Q2 and H1 FY '27 earnings conference call of Globus Spirits Limited, hosted by MOFSL. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Sumit Khaitan from MOFSL. Thank you, and over to you, sir.
Sumit Khaitan (MOFSL): Thank you. Good evening, everyone. I welcome you all to the earnings conference call to discuss Q2 and H1 FY '27 results of Globus Spirits Limited. To discuss the results, we have from the management Mr. Shekhar Swarup, CEO and Joint Managing Director, Mr. Paramjit Singh Gill, CEO Consumer Division, and Mr. Nilanjan Sarkar, CFO. They will take you through the results and the business performance, after which we will proceed for Q&A session. Before we proceed with the call, I would like to mention that some of the statement made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to investor presentation and other filings that can be found on the company's website. With this, I now hand over the call to the management for their opening remarks. Thank you, and over to you, sir.
Shekhar Swarup (Globus Spirits Ltd): Good afternoon, everyone. Thank you for joining us for our Q2 and H1 FY '27 earnings call. At the outset, I wish everyone a very happy and joyous festive season. Param and Nilanjan are with me today, and I will cover the overall direction of the business. Param will then discuss Consumer, followed by Nilanjan on the financials. The first half has seen continued continued progress in our Consumer business and strengthening of our financial position. The P&A business has moved close to EBITDA break-even, benefiting from growing scale, while Regular & Others continues to grow year-on-year supported by great performance in Uttar Pradesh. Manufacturing revenue in Q2 was 455 crores, with volumes of 55.26 million liters and EBITDA of 25.4 crores. EBITDA per liter came at 4.6 rupees a liter, reflecting higher grain and fuel costs. Q2 is typically a period of higher raw material and fuel costs ahead of the new crop season, as well as scheduled plant maintenance. We therefore evaluate manufacturing performance across a 12-month period. For H1, EBITDA was 5.59 per liter, whilst trailing 12-month figures stood at approximately 6.6 per liter. Our operating flexibility extends both extends across both product and feedstocks, ENA and ethanol, and maize and rice, allowing us to optimize contribution as market conditions change. Looking ahead to the ethanol supply year '26-'27, which is scheduled to begin later in November, reduced availability of sugar-based ethanol is expected to create greater procurement opportunities for grain-based producers. We expect We expect this to support higher capacity utilizations at Globus, and better absorption of overheads. On feedstocks, greater FCI availability is expected to moderate pressures on both rice and maize prices.
Shekhar Swarup (Globus Spirits Ltd): percent, being implemented progressively from the Kharif marketing season 26-27. Together with our feed stock and product flexibility, long term offtake agreements with OMC's and the contribution from value added by-products such as DDGS and corn oil, these developments support our confidence in maintaining the rupees 5 to 7 per litre annual EBITDA targets, whilst recognizing that actual allocations, offtake and input prices will determine the outcome. Turning to capital allocation, we completed our 200 crore rupee QIP during the quarter. We welcome our new institutional shareholders and particularly value the continued support of existing investors who participated in the fund raise. The QIP enabled us to strengthen our balance sheet further through debt reduction, providing additional room for the consumer business to grow. Nilanjan will cover the detailed financial impact. Our focus remains unchanged, convert consumer growth now into improving profitability, manage manufacturing economics across the cycles and deploy capital with discipline. With that, I hand over to Param.
Paramjit Singh Gill (Globus Spirits Ltd): Thank you, Shekhar and good afternoon, everybody. I will begin with prestige and above where increasing scale is translating into improved operating economics. P&A revenue grew 54% year-on-year to 59.9 crores while volumes increased 64% to 0.46 million cases. Sequentially revenue grew 9% and volume is 10%. EBITDA loss narrowed down to 0.2 crores, bringing the segment very close to break-even. For H1, P&A revenue was approximately 114.9 crores with volumes of approximately 0.88 million cases. Importantly, improved economies of scale helped mitigate cost pressures during the quarter. Gross margins remained broadly