Press Release

Established track record and experienced management
MAL is in the business of imported liquor, offering a portfolio of premium and luxury alcoholic beverages. It deals in importing, marketing, sales, and distribution of luxury spirits, wines, and liqueurs, and has an active presence in Travel Retail Duty-Free operations. The Directors of the company are Mr. Bhimji Nanji Patel, Mr. Kunal Bhimji Patel, Ms. Jagruti Prashant Sheth, Mr. Samir Kumar Das and Mr. Ghanshyam Vijaykumar Vyas. The company is geographically diversified into states such as Maharashtra, Karnataka, Goa, Haryana, Telangana, Acuite believes that Monika Alcobev Ltd will continue to benefit from its established track record of operations and experience management over the medium term.

Growth in Scale of operations:

MAL reported  revenue growth of 24.81% in FY25, increasing to Rs.236.15 crore from Rs.189.20 crore in FY24, supported by the introduction of new product categories, expanding demand for premium and luxury liquor brands, and the addition of new brands. The company has already achieved Rs.116.87 crore in 6MFY26 compared to Rs.84.31 crore in 6MFY25, indicating sustained growth momentum. MAL’s focus remains on the domestic market, contributing 92.84% of revenue, with Maharashtra and Haryana accounting for 45–50%, alongside exports to Asian countries. Operating profitability improved to 19.83% in FY25 from 17.51% in FY24 due to lower marketing expenses as brand presence strengthened, while PAT margin also rose to 9.79% in FY 25 from 8.77% in FY 24. The company enjoys pricing flexibility on their products and also able to pass by forex fluctuations to customers despite no formal hedging policy, ensuring margin stability. Acuite believes that Operational performance of the MAL will improve backed by visible revenue traction during 6MFY26 and also healthy profitability.

Moderate Financial Risk Profile:

Intensive Working Capital Management:
MAL’s operations remain highly working capital intensive, with GCA days increasing to 460 days in FY2025 from 392 days in FY2024, primarily due to elongated inventory holding and higher other current assets. Inventory days rose to 288 days in FY 25 from 200 days in FY 24, driven by significant stock build-up for deeper market penetration, import lead times of 90–120 days, and requirements to maintain stock with customs and state corporations. Stock in transit also contributed to the increase. Debtor days, though improved, remain high at 157 days in FY 25 versus 194 days in FY 24, owing to delayed realizations from state distributors and credit support to private distributors. Creditor days stood at 60 days in FY 25 against 43 days in Fy 24 aligned with policy. Other current assets surged to Rs.51.59 crore from Rs.27.68 crore due to supplier advances and lien-marked deposits maturity less than 12 months. Acuité believes that working capital requirements to remain intensive over the medium term given the nature of operations and dependence on state distributors.

Government Regulatory Risks
The Indian alcohol industry is characterized by stringent regulations and is primarily regulated by the respective State Governments. Every state has its set of regulations with respect to distribution and retail channels, registration, taxation and pricing of alcohol. Licenses to produce and bottles are particularly scarce and contract manufacturing is a well-established market entry strategy. Furthermore, players within the industry are susceptible to high excise duties; any adverse change in excise duties can weaken profitability, and consequently affect its credit risk profile.