Shri Gang Industries & Allied Products Ltd

Business Overview

• Integrated alco-bev manufacturer in UP with 66 KLPD ENA and 10-line bottling plant.
• Diageo/USL exclusive contract manufacturing with UPML brands Golden Cascade and Bulldozer.
• LOI with Tilaknagar Industries for 2 lakh cases per month improves volume visibility.

Key Operational Highlights

• Civil work for bottling expansion underway; commissioning expected by December 2026.
• Capex for ENA expansion: INR 39 Cr; deployment planned FY27–FY28.
• Target capacity expansion to 10 million cases; ENA integration enhances margins.
• FY26 Diageo KPIs: 2.9 million cases; 8.72 mn litres ENA; Rs 236 Cr revenue.
• Diageo contract accounts for ~70% of bottling capacity.

Financial Performance

• Q1FY27 net revenue Rs 84 Cr; PAT Rs 2.06 Cr; revenue broadly flat YoY.
• Q1FY27 gross margin 24%; EBITDA 5 Cr; EBITDA margin 6%.
• FY26 net revenue 366 Cr; EBITDA 36 Cr; PAT 19 Cr; GP 26%; EBITDA 10%; PAT 5%.

Capital Structure & Liquidity

• Net worth positive in FY25; promoters infused capital via warrants in FY26.
• Debt: long-term borrowings 36 Cr; short-term borrowings 14 Cr; cash 0.1 Cr.
• CFO/EBITDA 0.72x; Debt-EBITDA 1.4x.

Strategic Priorities & Outlook

• Expand UPML brands and scale Diageo partnership; evaluate third-party IMFL brands.
• Capex INR 39 Cr for ENA expansion; 25% in FY27, balance FY28.
• Aim to reach 10 Mn annual cases; explore acquisitions/brand-building in UPML/IMFL.

Risks & Mitigation

• Concentration risk from Diageo/USL; mitigated by Tilaknagar LOI volumes.
• Near-term demand visibility aided by Tilaknagar LOI volumes.
• Capex deployment planned FY27–FY28 to support expansion.

Governance & Leadership

• Chairman: Sanjay Kumar Jain; COO: Varun Gupta; Whole-time Director: Arun Kumar Sharma.
• Promoters infused capital via warrants in FY26.

Dematerialisation processing and listing

• Dematerialisation requests processed and confirmed to depositories.
• Securities dematerialised have been listed on the exchanges where earlier securities are listed.
• Physical dematerialisation certificates mutilated and cancelled; depository's name substituted as registered owner within 15 days.

Business overview

• Integrated alco-bev manufacturer with ENA distillery, bottling, contract manufacturing, and own UPML brands.
• Exclusive manufacturing tie-up with United Spirits for premium IMFL and Scotch in Uttar Pradesh.

Operations

• FY26 revenue reached Rs 402 crore, up 14% year-on-year.
• Diageo contract generated Rs 236 crore, about 64% of FY26 revenue.
• Produced 2.9 million Diageo cases and supplied 8.72 million litres of ENA.
• UPML cases were 2.896 million in FY26, broadly flat year-on-year.
• Tilaknagar Industries LOI covers 2 lakh cases per month; bottling line expected by FY27-end.

Financials

• FY26 net revenue was Rs 366 crore, up 13%; EBITDA was Rs 36 crore, down 25%.
• FY26 PAT fell 37% to Rs 19 crore; EBITDA margin declined to 10% from 15%.
• Q4FY26 net revenue rose 39% year-on-year to Rs 80 crore; EBITDA was Rs 5 crore.
• Q4FY26 PAT turned positive at Rs 2 crore versus a Rs 1 crore loss last year.
• Gross profit was Rs 96 crore in FY26, flat year-on-year, but margin fell to 26%.

Capital structure

• Net debt to EBITDA improved to 1.4x in FY26 from 14.5x in FY22.
• Net worth turned positive at Rs 52 crore in FY26 from Rs 11 crore in FY25.
• Long-term borrowings fell to Rs 36 crore and short-term borrowings to Rs 14 crore in FY26.
• Promoters infused capital through warrant subscription in FY26.
• Interest coverage improved to 6.2x in FY26; CFO to EBITDA was 72%.

Strategy

• Management is evaluating capacity expansion, own-brand scaling, and IMFL contract manufacturing opportunities.
• Bottling capacity expansion from 5.6 million to 10 million cases is under consideration.
• ENA distillery expansion capex of Rs 39 crore is planned in phases across FY27 and FY28.
• Company aims to expand or acquire brands in UPML and IMFL categories.

Risks

• FY26 margins weakened due to higher employee costs and lower gross margin.
• Q4FY26 revenue was affected by a prior-quarter one-time state duty refund.
• Growth depends heavily on Diageo volumes and successful execution of new contract manufacturing.

Leadership

• Chairman Sanjay Kumar Jain highlighted technology-enabled scaling and quality-led expansion.
• Varun Gupta serves as Chief Operating Officer.
• Arun Kumar Sharma serves as Whole-time Director.

Meeting Details

• Board meeting scheduled for Thursday, May 7, 2026.
• Location: F-32/3, Okhla Industrial Area, Phase-II, New Delhi-110020.

Key Agenda Items

• Approve audited financial results for the quarter and year ended March 31, 2026.

Other Notes

• Trading window closed until 48 hours after the financial results announcement.