Allied Blenders and Distillers Limited (ABD), one of India’s leading spirits companies and the country’s largest exporter by volume, has received a two-notch credit rating upgrade from India Ratings & Research (Ind-Ra), with its bank facilities upgraded from IND A to IND AA- and assigned a Stable Outlook. The upgrade reflects ABD’s continued expansion in its consolidated scale of operations in FY26, with Ind-Ra expecting the company to sustain and further grow its business over the medium term. The Stable Outlook is supported by expectations of sustained profitability, aided by premiumisation and an improved sales mix that could enhance gross margins.
The rating agency also expects ABD’s ongoing backward integration projects to support EBITDA margins over the medium term. Its consolidated net leverage is projected to remain comfortable despite ongoing capital expenditure. The rating action further factors in ABD’s strong position in the Indian-Made Foreign Liquor (IMFL) industry, pan-India diversification and the expanding size of the domestic spirits market, supporting steady improvement over the medium to long term. Commenting on the development, Managing Director Amar Sinha said the upgrade reflected ABD’s progress in strengthening its scale, profitability, operating resilience and balance sheet while pursuing its premiumisation strategy and long-term growth investments.
In Kolkata, the improved credit profile could support ABD’s expansion and premiumisation efforts in West Bengal, where Kolkata remains an important urban consumption market for IMFL products. The company’s diversified portfolio, including Officer’s Choice, Sterling Reserve and ICONiQ White, along with its focus on premium and higher-value offerings, could help strengthen its presence among evolving consumer segments in the region. ABD operates across whisky, brandy, rum, vodka and gin and has a presence in 39 international markets, supported by a manufacturing footprint of 40 units and a pan-India distribution network.
