Allied Blenders and Distillers Shares Jump 5% as Andhra Pradesh Clears Malt Plant Plan

Allied Blenders and Distillers receives renewed LOI from Andhra Pradesh. The project elevates regional production, lowers freight costs, and strengthens distribution in South India, aligning with demand growth while supporting efficiency and competitive pricing.

A regulatory green signal from Andhra Pradesh sparked a sharp rally in shares of Allied Blenders and Distillers on May 8, as investors cheered the revival of the company’s long-pending expansion project in the state.

The liquor maker’s stock jumped 5 percent to hit the upper circuit at Rs 571.10, taking its market capitalisation close to Rs 16,000 crore. The company has already gained around 76 percent over the past year, making it one of the stronger performers in India’s alcohol and beverages space.

The trigger for Thursday’s rally was the restoration of a Letter of Intent (LOI) by Andhra Pradesh’s Office of the Commissioner of Distilleries and Breweries. The renewed approval remains valid until September 2028.

Once operational, the proposed plant is expected to handle nearly 46.5 lakh cases annually, giving the company a stronger manufacturing footprint in South India — a region considered critical for liquor demand growth.

For investors, the importance of the project goes beyond just capacity addition. A local bottling unit in Andhra Pradesh could help Allied Blenders and Distillers reduce freight costs, improve delivery timelines and strengthen its regional distribution network. It may also allow the company to compete more aggressively on pricing in southern markets.

The development is particularly significant because South India contributes heavily to India’s organised liquor industry volumes. Having production closer to demand centres can improve operational efficiency and margins over time.

Allied Blenders and Distillers, the maker of Officer's Choice, remains India’s third-largest spirits company by volume. Its portfolio also includes Officer's Choice Blue, Sterling Reserve and Zoya Gin. Founded in 1988 by Kishore Chhabria, the company currently operates nearly 36 bottling facilities along with a distillery across the country.

The company’s financial performance has also shown steady improvement. In Q3 FY26, revenue from operations rose to Rs 1,003 crore from Rs 974 crore in the corresponding quarter last year. Operating margins expanded from 12 percent to 14 percent, while net profit increased 12.3 percent year-on-year to Rs 64 crore.

Earnings per share improved to Rs 2.38 from Rs 2.05 a year earlier, indicating stronger profitability despite a competitive market environment.

The revived Andhra Pradesh project now gives Allied Blenders and Distillers a fresh growth lever at a time when investors are increasingly focusing on companies expanding manufacturing capacity and strengthening regional supply chains.