Som Distilleries Stock Crashes 12%; What Triggered the Sharp Decline?

Synopsis: Som Distilleries shares crashed by 12% after its application for the Excise License for the Bhopal plant for FY 2026–27 was rejected by the Excise Department of Madhya Pradesh. Despite detailed submissions and a relevant court order, explanations were not adequately considered. The Company is pursuing legal remedies to restore operations.

The shares of the Small-Cap company, which specialises in producing alcoholic beverages such as beer, whisky, and other spirits in India, are in focus as they have crashed by 12 percent in the day’s trade.

With a market capitalization of Rs. 1,433.21 crores in the day’s trade, the shares of Som Distilleries & Breweries Ltd declined by 12.3 percent, making a low of Rs. 66.03 per share compared to its previous closing price of Rs. 75.36 per share.

What Happened 

The Company hereby informs the Stock Exchanges that its application for the grant of the Excise License for the Bhopal plant for FY 2026–27 has been rejected by the Excise Department, Madhya Pradesh. 

Despite submitting detailed responses and supporting documents to the show cause notice, the Company believes that its explanations, along with the relevant court order on record, have not been adequately considered.

The Company is currently pursuing appropriate legal remedies and taking necessary steps to restore the manufacturing license at the earliest. Management remains actively engaged with stakeholders and is evaluating measures to mitigate the impact on business operations. The Company appreciates the continued support of its stakeholders and will keep the Stock Exchanges informed of any material developments in accordance with applicable regulations.

Financials & Others

The company’s revenue declined by 46.66 percent from Rs. 339 crores in March 2025 to Rs. 181 crores in March 2026. Meanwhile, the net profit from Rs. 24 crores turned to a loss of Rs. 57 crores in the same period.

The company is currently operating with weak return ratios, as reflected in its low ROCE of 5.68% and ROE of 1.87%, indicating limited efficiency in generating profits from its capital base and shareholder funds. On the leverage side, the debt-to-equity ratio of 0.27 suggests a relatively low reliance on debt, which provides some financial stability, but overall profitability remains subdued.

Som Distilleries & Breweries Ltd (SDBL) is an Indian alcoholic beverages company based in Bhopal, founded in 1993. It is engaged in manufacturing and selling beer and Indian Made Foreign Liquor (IMFL) such as whisky, rum, vodka, and brandy. Its popular beer brands include Hunter, Woodpecker, Black Fort, and Legend. The company has a strong distribution network across many Indian states and also exports its products. It operates multiple manufacturing facilities and serves retail consumers, hotels, and institutional buyers across India.

SOM Distilleries & Breweries Ltd, based in Bhopal, is one of India’s leading alcoholic beverages manufacturers and among the few listed beer companies in the country. The company is expanding rapidly, supported by favourable excise policy changes in states like Karnataka and new market entries such as Delhi for its premium whiskey brand Mahavat.

It is also investing around Rs. 600 crore in a greenfield brewery and distillery project in Uttar Pradesh, strengthening its production capacity and growth outlook as one of the fastest-growing beer companies in India.

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