Why Have Shares of Allied Blenders Dropped Over 8% in 2025?
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Synopsis
Allied Blenders' shares have dropped significantly in 2025, driven by a revenue dip reported in their Q4 results. Despite rising profits and strong sales demand, the stock is struggling this year. Discover the details behind this financial performance and what it means for investors.
Key Takeaways
- Allied Blenders shares down over 8% YTD.
- Q4 revenue shows a 17.41% decline.
- Net profit increased to Rs 78.62 crore.
- Strong consumer demand with 8.5 million cases sold.
- Final dividend of Rs 3.6 per share proposed.
Mumbai, May 29 (NationPress) The stock of domestic spirits manufacturer Allied Blenders and Distillers Limited has experienced a decline of over 8% in 2025, as reported by the latest figures from the National Stock Exchange (NSE).
On Wednesday, the stock settled at Rs 394.10 on the NSE, reflecting a daily decrease of 0.48%. Despite a 25% increase in the last month and a 17% rise over the past six months, it remains negative year-to-date.
Since January, the stock has fallen by 8.18%, equating to Rs 35.10. This downturn follows the company's announcement of its fourth-quarter financial performance, which indicated a sequential revenue decline despite a notable rise in net profit.
In a stock exchange filing earlier this month, the producer of Officer’s Choice whisky disclosed a 17.41% decrease in consolidated revenue on a sequential basis, totaling Rs 1,934.72 crore for the quarter concluding on March 31 (Q4 FY25), down from Rs 2,342.38 crore in the previous quarter (Q3 FY25).
Moreover, total income for this quarter also dropped by 16.91% quarterly to Rs 1,948.99 crore, compared to Rs 2,345.63 crore in Q3.
Notably, net profit surged to Rs 78.62 crore in Q4, a 36.82% increase from Rs 57.46 crore in the preceding quarter.
This marks a significant recovery compared to the same period last year (Q4 FY24), when the company reported a net loss of Rs 2.4 crore.
The profit increase was fueled by strong consumer demand, with sales reaching 8.5 million cases for the quarter, a 20.8% rise from 7.1 million cases in Q4 last year.
Growth was robust in both the mass premium and prestige segments, as indicated in the company's regulatory filing earlier this month.
In response to the results, Allied Blenders' Managing Director Alok Gupta commented: "We are delighted to announce a third successive quarter of strong performance following our IPO."
"These outcomes showcase our steadfast implementation of a four-point transformation strategy aimed at premiumization, supply chain security, margin enhancement, and improved governance," Gupta added.
The board of the company has sanctioned a final dividend of Rs 3.6 per share for FY25, pending shareholder approval at the upcoming annual general meeting (AGM).
"Should it receive approval, the dividend will be distributed within 30 days of the meeting. The record date for determining eligible shareholders is set for June 27,” the company noted in its filing.
Furthermore, Allied Blenders aims to secure up to Rs 1,000 crore through various funding avenues, including public or private offerings, preferential allotments, or qualified institutional placements.
This proposed fundraising will also necessitate shareholder and regulatory approvals.
Allied Blenders boasts a portfolio that includes prominent whisky brands such as Officer’s Choice, Sterling Reserve, and ICONiQ, alongside offerings in brandy, rum, vodka, and gin.
Point of View
It's essential to provide a balanced view on the financial dynamics of Allied Blenders. Despite the challenges reflected in the stock performance, the company's strategic moves and profit growth indicate potential for recovery. Stakeholders should observe closely as the company's initiatives unfold.
NationPress
08/06/2025
Frequently Asked Questions
What caused the decline in Allied Blenders' shares?
The decline in shares is attributed to a drop in revenue reported in the fourth quarter, despite an increase in net profit.
How much did the shares fall in 2025?
Allied Blenders' shares have fallen over 8% in 2025.
What was the revenue for Q4 FY25?
The consolidated revenue for Q4 FY25 was Rs 1,934.72 crore.
What is the profit growth for the quarter?
Net profit surged to Rs 78.62 crore in Q4, a 36.82% increase from the previous quarter.
What is the dividend proposed for FY25?
The board has approved a final dividend of Rs 3.6 per share for FY25, pending shareholder approval.
