Globus Spirits Ltd Ratings Reaffirmed by CARE as A+ (Stable) and A1+, Driven by Operational Improvements in FY26

Globus Spirits Ltd Ratings Reaffirmed by CARE as A+ (Stable) and A1+, Driven by Operational Improvements in FY26​

Globus Spirits Limited has received a rating reaffirmation from CARE Ratings, with its long-term bank facilities assigned a rating of CARE A+; Stable, and short-term bank facilities at CARE A1+. These ratings reflect the company's improved financial performance and strengthening capital structure during fiscal year 2026.

The ratings review considered GSL's significant presence in the bulk alcohol and Regular and Others (R&O) segment, as well as its experienced promoter and management team.

Financial Overview and Rating Details​

CARE Ratings assessed the company’s facilities, noting improved financial performance in FY26 following operational enhancements and cost management. The ratings applied to various bank facilities are detailed below:

Key Financial and Operational Highlights​

Globus Spirits Limited reported total operating income (TOI) of approximately ₹2,703 crore in FY26, marking a growth of about 6% compared to the ₹2,542 crore recorded in FY25. The company saw substantial improvements in profitability margins and debt coverage indicators.

Key financial metrics for Globus Spirits Limited are summarized below:

Segment Performance and Strengths​

GSL’s business is divided into manufacturing and consumer segments, with the bulk alcohol and R&O segment contributing roughly 94% of revenue in FY26.

Manufacturing & Bulk Alcohol:
Revenue from the bulk alcohol segment increased by about 7% year-on-year (YoY) to ₹1,644 crore. This increase was driven by a 6% rise in ENA/ethanol sales volume and a 26% increase in average realization of distiller's dried grains with solubles (DDGS).

R&O Segment:
Revenue from the R&O segment grew by about 3% to ₹900 crore, attributed to a 4% rise in average sales realization following a price hike of 4.35% implemented in Rajasthan in April 2025. The company operates primarily in five states, including Rajasthan, Haryana, Delhi, UP, and West Bengal.

Operational Improvements:
The manufacturing segment's capacity utilization (CU) improved from 74% in FY25 to 80% in FY26. This improvement is credited to increased ethanol production facilitated by softening raw material prices following the Government of India (GOI)'s allowance for the Food Corporation of India (FCI) to sell surplus rice for ethanol production starting February 2025.

Financial Health and Capital Structure:
The company’s PBILDT margin significantly improved from 6.06% in FY25 to 9.64% in FY26, a result of higher capacity utilization, better raw material costs, and the Rajasthan price hike. The overall gearing ratio declined from 0.79x as of March 31, 2025, to 0.66x as of March 31, 2026.

Industry Constraints and Outlook​

While the company's operational performance improved, the ratings remain tempered by several factors inherent to the industry. These include continuous losses reported in the P&A segment—despite a reduction in loss witnessed across FY25 and FY26—and input price volatility, given the regulated nature of the alcohol market and limited pricing flexibility for the final product.

The company is also subject to high taxation and heavy regulation within the organized alcohol industry.

CARE Ratings noted that profitability remains expected to improve with a planned 5% price hike in the Rajasthan market starting April 01, 2026, and subsequent growth from the Uttar Pradesh plant commencement in FY27 and higher allocation for country liquor sales in Delhi in FY27. The outlook assigned is Stable.

GLOBUSSPR Stock Price Movement​

Shares of Globus Spirits Limited are edging higher to ₹925.75 as of 11:48 AM, rallying after gaining ₹1.80 or 0.19% in trading. The equity trades on a volume of 19,996 shares, showing strong momentum during the active market session.