First con call scheduled by Piccadily. Extremely positive step. The stock is due for a re-rating now or Radico / USL are due for a de-rating.. there is no other way to explain the story in next 12 months
For ref - Piccadily and Radico are neck to neck in their overall luxury sale portfolio (inching towards Rs 500 Cr revenue in FY27)
Expect analyst coverage and IC reports coming out soon, followed by FII stake to a certain degree
Strong y-o-y results foremost.
Surprisingly, auditor resignation is mentioned at the same time and in same filing. Anything to be cautious of, what do seniors make of this?
No.Non renewal of peer review is clearly mentioned as the reason for resignation. It means that the erstwhile auditors peer review certificate has not been renewed making them ineligible to continue .Unless an audit farm has it, they can’t legally operate as an auditor and actually SEBI also mandates that statutory auditors must have peer review certificate when auditing listed companies.So that resignation is actually a forced resignation because of professional non-compliance of the auditors themselves.Nothing much to do with Piccadily .
Any key takeaways from con call? Distillery growth does not seem to be very impressive..
BULLET POINTS
Greenfield Chattisgarh plant monetisation starts from May 2026 itself. Barrels are in various different phases of maturation, incremental revenue growth will be seen instead of all at once. Full capacity utilisation will be seen in next 6 months.
CSD canteen stores contribute to roughly 30% of revenue, export market roughly 25% and rest 45% is domestic. Focus is on to increase export revenue to 50%
Specific product wise revenue breakdown and volume growth not given.
Change in audit firm because of re-alignment of partners at their side. Company chose to stick with specific partner (Mr Mangwa) who understands business well instead of firm.
Company eyes 60% growth in alco-bev business in FY27 (mainly through IMFL). Previously there were supply issues which now has been ironed out.
Company eyes 3-4x revenue and value creation from current levels in next 3 years.
Exploring inorganic expansion- both on domestic and international side.
Scotland facility land acquired. Construction will be completed in coming couple years.
New products are in pipeline- my guess is on gin.
Drop in EBITDA in previous quarter is because of sugar business, plan to demerge it already filed.
Majority of capex already done - (purchase of barrels). Capex for rest of year would be under 25 crores
Multiple questions from Hiren Ved’s Alchemy was nice to hear, Hiren himself was on call. Finally we can expect some institutional stake. All points are from top of my head, ignore mistakes.
Disclaimer- invested and biased, major chunk of portfolio.
Some of the points that I found interesting from the concall :
The demerger proposed should make Piccadilly Agro a pure play alcobev company with a large bias towards super premium brands . If the revenue growth projected plays out this can be an interesting play.
Disclosure: Invested recently with an initial allocation.
In the presentation, they have also mentioned that a blended whiskey in luxury segment (2000-5000) is going to be launched soon.
Similarly, our profitability also grew by 79%, which is PBT from INR35 crores to INR63 crores. And this is based on the strong premiumization and our sale of our premium products and leveraging few costs. On a standalone basis, revenue grew by 33% year-on-year basis from INR270 crores to INR364 crores. Our PBT grew by 17% from INR54 crores to INR63 crores and our PAT grew by 14% from 40 crores to INR46 crores.
Can you pls tell me, Q4 Fy 25, Distillery EBIT was 52.75 cr, then how come they are stating it was 35cr??
They are saying that in context of premium portfolio which includes flagship brands only and not the entire distillery segment.
They have quoted revenue and PBT from this (incl consol) financial statement only. Since this being the first concall, I am giving the management the benefit of the doubt and hoping it is not a deliberate attempt to downplay the moderation in margins in the alcobev segment.
They had stopped selling of malt produced in house last year to fill up their own barrels stock for maturation .That had reduced revenue and increased margins since malt is commodity .Anytime they start selling again margins had to reduce and revenue would increase .Either they have started selling malt again or the other possibility is the commisioning and ramp up costs of the expanded facilities . Ramping up also means producing large volumes of ethanol/ENA initially which they would need to sell to OMC or other alcobev producers etc. at much lower margin. Plus, new factories means trial of new machinery ,new extra employees, fine tuning of factory processes etc. which adds to Cost of material consumed and other costs ..
The company is building up for new leg of growth ,They sell products that takes years to mature ..so its not really useful to expect a steady state of operations now.
Disc. Holding . Added recently to a separate portfolio .
From financial statement it is quite evident that power and fuel cost and Other Expenses have increased by around 25 cr YoY compared to minimal increase in employee cost. I am bothered why they have given wrong figure for comparing this quarter result??
I think the answer is as explained in another post to your question.Those concall numbers are only for premium section ..but only for the PBT part . For this quarter the PBT on your screenshot is near 69crores and Q4 25 is 53 crores .And they have mentioned 63crores (not 69) and 35 crores(not 53) . So they are not quoting the PBT numbers for entire distillery segment in the concall. Considering they stopped selling malt sometime inbetween , I think it makes sense but you are right..they should be more specific .Mixing up revenue and PBT for different set of items sold is confusing indeed.
Piccadily stock looks quite cheap on trailing numbers
especially if you look at Radico Khaitan
Growth prospects for Piccadily are far better than any other alcohol company listed in India
Management repeatedly guided FY’27 as “exceptional” with 60%–70% growth (explicitly value growth).
They also stated value and volume growth should be broadly similar because they don’t do mass products:
Indri expansion: additional INR250–300 crores revenue in FY’27
Chhattisgarh: INR300–400 crores revenue in FY’27
Expected absolute EBITDA growth roughly in line with top-line growth; margin may be stable to slightly higher:
Capacity has gone up 3x and provides long growth runway
Expansion completed Oct 2025:
ENA/ethanol capacity 78 → 220 KLPD
Malt capacity 12 → 30 KLPD
Added maturation barrels
Greenfield (Chhattisgarh)
200 KLPD distillery commissioned Dec 2025
FY’27 ramp: sales to start “May itself”; expects “in next six months full utilization.”
Total installed capacity
Maturation assets
Barrels: ~85,000 filled, plan to reach ~100,000 in FY’27.
Notably, the company does not sell malt/bulk barrels: “We don’t do a malt sale… We don’t do any bulk malt sale. It will all be for bottling for our flagship premium brands.”
When I last had a look at piccadily around 1.5 years ago, I was looking at RPT and saw 10 crore as a rent to promoter’s manali hotel. The cost of a room in that hotel was 3k per night then. The company also paid 15 Cr for a parcel of land to soon and sure holding ( a promotor entity ). Other RPTs were also suspicious.
Since they have started concall and are heading in the right direction of splitting sugar and distillery business and the valuation seems to be attractive, I am reading about it again.
Can someone pls confirm these practices have stopped. I am not an expert in balance sheets so can someone please look out for the red flags in balance sheet ( i can see current borrowings ballooning and receivables increasing ).
Indri’s so popular so why receivables increasing? Shouldnt they be selling in cash?? Sorry, a bit new in this sector so trying to understand how it works.
disc: tracking
Guidance for FY27 is super strong
Management repeatedly guided FY’27 as “exceptional” with 60%–70% growth (explicitly value growth).
In next 3 to 4 years, we expect revenue to grow by 3x to 4x of the current revenue.
EBITDA margin guidance of flat to 50 bps improvement
Company delivered Rs138crs in FY26. Assuming 70% PAT growth FY27E PAT likely to be Rs 235crs. The stock at current market cap of Rs5659crs trade at a P/E multiple of 24x which is super cheap for an alcohol stock.
Fairly confident stock should double in 1 year.
CAPACITY EXPANSION
Indri distillery expansion
Mahasamund, Chhattisgarh
Total Capacity
Others
Disclosure: Invested
The guidance has been very strong and if Q1 demonstrates the execution, the stock should do well from here. Institutions have still not shown much interest, positive Q1 results can be a trigger for their entry. Overall the sector (FMCG/Beverages) has been on the sidelines for quite some time which is a good news for investors to build a position in the stock. Demerger by the year end will eventually take the monkey off the back and the journey from there should be interesting.
Distillery revenue in 1QFY27 at Rs206cr up 26% YoY
Distillery EBITDA up 21% YoY
Distillery EBIT up 13% YoY (lower than EBITDA because of commissioning of assets that have not been fully utilized)
Company expects to deliver 60–70% growth for the full year, with H2 being the main driver and contributing approximately 60–65% of our annual revenue.
Piccadily Agro Industries Q1 FY27 concall
Financial Performance
• Revenue reached a record ₹270.5 Cr, up 18.1% YoY with EBITDA growing 21% YoY.
• EBITDA margin improved to 18.5%. PAT increased 15.4% YoY to ₹22 Cr.
• Premium alcobev revenue surged 47.3% YoY with portfolio contribution rising to 43.5%.
• Indri continued 18-20% growth while Whistler delivered over 60% growth.
• Management reiterated branded alcobev growth guidance of 60-70% for FY27.
• 87,000 maturing barrels ensure no supply constraints for future premium growth.
• Chhattisgarh plant targets 50% utilization by year-end with ₹300-400 Cr revenue guidance intact.
• FY27 revenue growth guidance of around 60% maintained with 23-24% EBITDA margin target.
• New launches in Q2 and Q3 plus exports and Portavadie expansion to drive long-term growth.
