Look, I don’t usually get excited about alcohol stocks.

I mean… it’s a tough space, right? Super seasonal, full of government regulations, state-wise pricing, and weird excise laws. Not to mention, most beer companies are either too flashy or too boring.

But then I stumbled upon Som Distilleries & Breweries

And something clicked.

It wasn’t the typical “large-cap consumer brand with 20 ad campaigns a year” type of story. It was more like, “Okay, these folks are just quietly doing their thing—and doing it well.”

Let’s Talk Numbers First

So here’s what made me look twice.

In Q3 FY25, Som clocked:

  • ₹3,027 Cr in revenue (13.6% jump YoY)
  • ₹192 Cr in net profit
  • 4.7 million beer cases sold
  • 0.34 million IMFL cases
  • EBITDA margin of 12.5% — not bad at all

That’s not just steady — it’s solid.

And what caught my eye is how clean the growth looks. Margins have held up. Realizations per case have improved. And it’s not just more volume — it’s better volume.

That’s when I thought — maybe there’s more to this than just beer.

They’re Building Brands, Not Just Selling Cases

This is where it gets interesting.

Som launched Legend, a new beer brand, and within 9 months it sold 1.8 million cases. That’s not normal. That’s product-market fit.

Then there’s Woodpecker — India’s first twist-cap premium beer. It’s doing well in Karnataka, which is a competitive and price-sensitive state. If you’re scaling a premium product there, you’re doing something right.

And while legacy brands like Black Fort have slowed down a bit, this is what the brand contribution looked like in Q3:

They’re Not Just Sitting Still Either

Their current capacity is 35.2 million cases, and with the Odisha expansion, they’re taking that up to 38.2 million.

They’ve also announced a ₹600 Cr greenfield project in Uttar Pradesh — land already secured, by the way — which shows they’re thinking long-term.

Add to that a tie-up with Carlsberg for plant utilization and a solid push into newer states like UP, Jharkhand, and the Northeast… and you start to see the roadmap.

This isn’t just “sell more beer.” It’s “scale like a system.”

Cleaning Up The Balance Sheet

This part genuinely impressed me.

Som has cut down ₹760 Cr in net debt over the past 9 months.

That’s not just good housekeeping — it’s smart capital allocation. Their net debt/EBITDA now stands at just 0.64x, which gives them breathing room. Less leverage = more flexibility = fewer surprises.

Also, their Woodpecker subsidiary got a rating upgrade (BBB+ to A-). Which, again, not flashy — but shows balance sheet strength.

Here’s the visual on how that debt has come down:

But Yeah, Not Everything Is Smooth

Couple of things to keep in mind:

  • Beer still makes up ~92% of revenue. IMFL is small but growing.
  • Black Fort volumes have declined. Probably due to changing price bands.
  • Karnataka’s excise changes could hit price-sensitive segments.
  • And like all alco-bev companies, seasonality matters — Q4 and Q1 are their big quarters.

But none of that’s a deal-breaker. It’s just stuff you factor in.

So Why Am I Writing This?

Because companies like Som are fun to watch.

They’re not grabbing headlines. They’re not on every billboard. They’re just executing. Growing. Reinventing. This is a company building volume, optimizing efficiency, and creating margin through premiumization—all while flying under the radar.

And maybe that’s the kind of story I like the most—the underdog business quietly building something meaningful.

So no, this isn’t a stock tip. It’s not a pitch.

It’s just me telling you—I looked at a beer company, and it made me sit up. Maybe it’ll make you curious too.

Sources:

Q3 FY25 Earnings Concall Transcript (Detailed commentary by management on volumes, brand performance, CAPEX plans, pricing, debt reduction, and state-wise strategies.)

Investor Presentation—Q3 FY25 (Key financials, brand mix, capacity utilization, product launches (Legend, Woodpecker), CAPEX roadmap, and leverage profile)

ICRA Credit Rating Update March 2025 (Insights on debt structure, credit rating changes, greenfield project announcement, and consolidated financials)

Screener.in—SDBL Company Page (Market data, historical performance, and valuation snapshot)

Annual Report FY24 (Business overview, risk disclosures, segment commentary, and consolidated numbers)

Research & insights by Shikshan Nivesh

Charts/images created by Shikshan Nivesh using company-reported financials

Disclaimer: This article is for informational purposes only. It is not investment advice. Please do your own research or speak with a financial advisor before making any investment decisions.

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