Are Allied Blenders & Distillers Ltd latest results good or bad?

Allied Blenders & Distillers Ltd has reported its latest financial results for the quarter ended September 2025, showcasing a quarter-on-quarter profit growth of 13.70% alongside a sequential revenue increase of 7.28%, reaching ₹990.06 crores. The operating margins expanded to 12.67%, reflecting improved operational efficiency and better cost management despite inflationary pressures.
The net profit for Q2 FY26 stood at ₹64.31 crores, representing a substantial 35.22% increase year-on-year, while the revenue showed a year-on-year growth of 14.11%. The company has also demonstrated strong capital efficiency with a return on equity (ROE) of 16.49%. However, despite these positive operational metrics, investor sentiment appears cautious, as indicated by the stock trading significantly below its 52-week high and facing valuation pressures with a trailing P/E ratio of 49 times.

In the subsequent quarter ending December 2025, the company experienced a net sales growth of 1.30% compared to the previous quarter, alongside a net profit growth of 3.37%. This reflects a slowdown in growth momentum, as both metrics were lower than the previous quarter's performance. The operating profit margin slightly improved to 12.67% from 13.53% in the prior quarter, indicating a stable operational performance amidst the challenges.

Overall, while Allied Blenders has shown strong operational fundamentals and profitability, the recent adjustments in its evaluation suggest a complex market perception, balancing growth ambitions with valuation concerns. The company continues to navigate a competitive landscape in the spirits industry, with a focus on maintaining its operational efficiency and market share.