Allied Blenders and Distillers Limited (ABDL) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Allied Blenders and Distillers Limited Q2 FY '27 Results Conference Call hosted by Antique Stock Broking Limited. [Operator Instructions] I now hand the conference over to Mr. Abhijeet Kundu. Thank you, and over to you, sir.

Thank you. It is our absolute pleasure to host the management of Allied Blenders and Distillers Limited for the Q2 FY '27 results con call. Over to Mr. Mukund, Head of Investor Relations further proceeding Thank you.

Thanks, Abhijeet. Good evening, everyone. Thank you for joining our Q2 FY '27 results conference call. I hope you have received a copy of our results presentation. I would like to urge you to go through this along with the disclaimer slides. Today, we have with us from the management of ABD, Mr. Shekhar Ramamurthy, Executive Deputy Chairman; Mr. Amar Sinha, Managing Director; Mr. Ramakrishnan Ramaswamy, Chief Financial Officer. Now I would like to hand over the call to our MD, Mr. Amar Sinha, who will give you the summary of the company's quarterly performance before we open up for Q&A. Over to you, Amar.

Thank you, Mukund. Good evening, everyone, and thank you for joining us today for ABD's Q2 and H1 FY '27 earnings call. In the first half of FY '27, ABD has continued to build a stronger, a sharper operating model and a clear focus on building a future-ready spirits company. Our priorities remain consistent, premiumization-led growth, stronger consumer engagement, disciplined execution and backward integration and prudent capital allocation. Q2 FY '27 performance overview. On a consolidated basis, income from operations stood at INR 1,152 crores, reflecting growth of 15.8% year-on-year and 17.1% quarter-on-quarter. Q2 FY '27 marked an important milestone for ABD with quarterly volumes crossing 10 million cases for the first time. Total volumes stood at 10 million cases compared to 9 million cases in Q2 FY '26, representing growth of 11.1% year-on-year. The growth was broad-based across Mass Premium and Others and Prestige & Above, with all 4 Millionaire brands also growing on a sequential basis, complemented by growth across key domestic and international markets, including the defense channel. This strong momentum was visible through the first half of FY '27, during which we achieved record monthly sales on 3 occasions, culminating in our highest ever monthly volume of over 3.5 million cases in September '26. Gross margins stood at 45.3%, an expansion of 90 basis points year-on-year, driven by a profitable brand mix across states and higher realization per case, complemented by backward integration benefits from PET bottle manufacturing despite the impact of global supply chain disruptions. Reported EBITDA stood at INR 143 crores, up 10% year-on-year and 19.2% quarter-on-quarter with EBITDA margin at 12.4%. The margin was lower by 66 basis points year-on-year, reflecting our continued investments in core brands and the newly established super premium to luxury portfolio. PAT stood at INR 69 crores, up 9.7% year-on-year and 52% quarter-on-quarter. Profitability continued to be impacted by global supply chain disruptions with an estimated impact of INR 29 crores during the quarter. On a like-to-like basis, excluding this impact, gross margin would have been 47.9%, an expansion of 342 basis points on year-on-year basis. EBITDA would have been INR 172 crores, higher by 32.3% on a year-on-year basis. With EBITDA margin at 14.9%, an expansion of 186 basis points, like-to-like PAT would have been INR 91 crores, higher by 44.3% on a year-on-year basis. This reflects the underlying strength of our operating performance, supported by premium mix improvement and disciplined execution. For H1 FY '27, income from operations stood at INR 2,135 crores, up 10.9% year-on-year and EBITDA at INR 263 crores, up 5.8%. Reported PAT for the half year stood at INR 114 crores compared to INR 119 crores in H1 FY '26. Excluding the INR 53 crore impact of global supply chain disruptions during the half year, like-to-like EBITDA would have been INR 316 crores, higher by 27.1% and like-to-like PAT would have been INR 154 crores, higher by 29.8% year-on-year. Now let me discuss the performance of the Mass Premium and Others and Prestige & Above segments. Mass Premium and Others, we delivered a strong quarterly performance in Q2 FY '27 in the Mass Premium and Others category. The net sales value was INR 468 crores, up 15.9% year-on-year and 21.1% quarter-on-quarter. The volumes grew 15.5% year-on-year and 17.7% quarter-on-quarter to 5.5 million cases. Realization per case improved to INR 848, up 0.4% year-on-year and 2.9% quarter-on-quarter. The overall volume growth was driven by strong growth in the brandy category in the state of Andhra Pradesh. Post receipt of relevant approvals in Q4 FY '26, we have aggressively rolled out the brand in Andhra Pradesh, which is one of the largest brandy markets in India. With strong consumer response, we have been able to achieve near double-digit market share in the state in the Mass Premium category. We witnessed robust growth in the whiskey category as well, led by a strong bounce back of our flagship brand, Officer's Choice whiskey. The growth in Southern region, which was well supported by Eastern regions and exports market. Officer's Choice remains a strong cash flow generator, retaining its leadership in India's Mass Premium whiskey category and its position as India's #1 exported whiskey brand. Portfolio premiumization and brand momentum. Premiumization remains central to ABD's growth strategy. During Q2 FY '27, Prestige & Above sales grew 13.4% year-on-year and 7.5% quarter-on-quarter to INR 605 crores. Volume stood at 4.5 million cases, up 6.1% year-on-year and 3.8% quarter-on-quarter, while realization per case improved to INR 1,339 an increase of 6.9% year-on-year and 3.6% quarter-on-quarter. The segment contributed 56.4% of value sales in Q2 FY '27 as compared to 56.9% in Q2 FY '26. On a sales volume basis, the segment contributed 45% in Q2 FY '27 as compared to 47% -- 47.1% in Q2 FY '26. The P&A contribution was marginally lower to higher growth -- lower due to higher growth in the Mass Premium and Other segment, resulting into higher sales. ICONiQ White continued to lead this momentum. The brand delivered 3.2 million cases in Q2 FY '27, up 20.6% from 2.6 million cases in Q2 FY '26 with average monthly volumes continuing to exceed 1 million cases. Overall, in H1 FY '27, ICONiQ White has grown by 26.8% on a year-on-year basis to 6.2 million cases. ICONiQ White is now operating at a meaningful scale supported by domestic market penetration, the defense channel and an expanding international presence. It also continues to be recognized as the world's fastest-growing millionaire whiskey brand for 3 consecutive calendar years, CY '23, CY '24 and CY '25. Now let me provide you with an update on our other millionaire brand, Officer's Choice Blue. As per stated plan, we launched a refreshed identity and premium packaging of the brand from September 26. It features a sleeker bottle, a transparent label with Matt gold foiling and an embossed trusted since 1988 marker. This has been rolled out across Uttar Pradesh, Maharashtra, Haryana and West Bengal and has received an encouraging customer response. Now we will be launching in more markets in phases. Additionally, we have seen a sequential improvement in Officer's Choice Blue brand monthly performance with the pace of year-on-year decline moderating progressively, resulting in quarter-on-quarter growth during Q2 FY '27. New launches. In September 26, we launched THE INDIAN EDIT to strengthen our premium whiskey portfolio. The brand blends Indian malt and grain spirits with fine scotch malts and features packaging inspired by Indian heritage. It is available in Maharashtra, Haryana, Uttar Pradesh, Assam, Tripura, Rajasthan and Goa with further expansion planned and has received encouraging response from trade partners and consumers. Super Premium and Luxury portfolio. ABD Maestro continues to be an important platform for our Super Premium to Luxury ambition. In its first year of operations -- that is FY '26, we have established a differentiated portfolio of 10 brands with unique positioning across whiskey, gin, vodka and rum categories. In the current year, the focus is on expanding the width of distribution, deeper penetration in addressable market and strong consumer engagement. The Super Premium to Luxury portfolio is now present in about 80% of its addressable markets in India. and have expanded internationally to 7 countries, namely Australia, Canada, Ivory Coast, New Zealand, Rwanda, Sierra Leone and the UAE. During the quarter, we continue to invest in brand building and distribution initiatives to strengthen the visibility and positioning of the ABD Maestro portfolio, supported by our dedicated premium execution team focused on key accounts, on-premise presence, mixology-led activation and social visibility. The portfolio continues to receive strong recognition at international and national levels. ABD Maestro has won more than 35 global awards and recognitions since its inception in FY '26. These initiatives are aligned with our broader strategy of building brand equity, increasing premium touch points. And these global recognitions is establishing ABD Maestro as a credible player in the Super Premium and Luxury segments, while creating long-term value for our brands. International business. Our international business remains a strategic growth opportunity. ABD has expanded its footprint to 42 countries in Q2 FY '27 compared to 36 countries in Q4 FY '26 with expansion in European and African markets and Australia during the year, reinforcing our position as one of India's leading spirits exporters by volume. Exports continue to be an asset-light and high profitability model for us with superior working capital efficiency and compared to the domestic business, we remain focused on deepening our presence in existing markets, while selectively expanding into new geographies. In August 2026, we announced our first overseas local production arrangement for Officer's [Technical Difficulty] Asia through an asset-light co-bottling model with an established local partner. This marks an important step in our expansion in Southeast Asia, enabling faster market entry with limited capital deployment, while maintaining oversight of product quality and brand standards. The company intends to evaluate the phased introduction of additional brands under this framework over time, in line with market response and route to market readiness. ABD will continue to evaluate similar asset-light production partnerships across select international markets based on market opportunities and strategic fit. Our international growth continues to be driven by our millionaire brands alongside the expanding presence of ABD Maestro's Super Premium to Luxury portfolio. Backward integration and CapEx progress. Backward integration remains an important pillar of ABD's transformation road map. Our CapEx program is focused on improving supply security, reducing structural costs and supporting margin expansion over the medium term. We have undertaken backward integration projects in key markets of Telangana, Maharashtra and Uttar Pradesh. Let me provide you an update on the same. In Telangana, the PET bottles manufacturing facility at Rangapur commissioned in FY '26 continues to be EBITDA accretive. In October 2026, we commissioned our captive malt distillery at Rangapur with an investment of about INR 75 crores and an annual capacity of about 4 million bulk liters. It is integrated with our existing manufacturing complex, which also houses an ENA distillery and IMFL bottling unit and the PET bottle plant. The malt distillery will support the captive malt requirements of our growing Prestige & Above portfolio, reduce dependence on external sourcing, margin accretive from in-house manufacturing and support the development of our future single malt whiskey portfolio. in Maharashtra, in our subsidiary, Minakshi Agro Industries, Aurangabad. The bottling unit project is progressing well and is expected to be operational in the next couple of months. ENA distillery expansion. We have received the environment clearance from the authorities and currently, the construction is under progress. Overall, the expansion project is on track to be operational in H1 FY '28. In Uttar Pradesh, UP is one of India's fastest-growing spirits markets is central to ABD's growth plans. The company has announced an overall investment of over INR 600 crores in the state. In January 2026, we acquired nonoperating assets for about INR 70 crores and immediately undertook the upgradation of the bottling unit for about INR 40 crores in Moradabad. In October 2026, we commenced commercial operations at our bottling facility with an initial capacity of 6 million cases per annum. It strengthens our in-house bottling capability in one of our key markets and is expected to improve service efficiency, while delivering cost benefits through higher in-house bottling and savings on franchise fees of INR 27 per case. In August 2026, the company announced setting up a 66 million bulk liter per year dual mode distillery with an investment about INR 293.5 crores in UP. Expansion of bottling capacity from the existing capacity of 6 million cases per year to an aggregate capacity of 13 million cases per year by establishing a new fully automated bottling unit, refurbishment of the existing 13 million bulk liter per year molasses distillery and acquisition of additional land for the proposed expansion with an investment of about INR 202 crores. Across Telangana, Maharashtra, Uttar Pradesh and Andhra Pradesh, our strategic investments are intended to deepen in-house ENA, malt, PET and bottling capabilities. These initiatives are expected to improve supply security, drive structural cost efficiencies and support EBITDA margin expansion over the medium term, including an expected margin benefit of approximately 300 basis points by FY '28 and a further 150 basis points in FY '29. Now other markets. In addition to the key mentioned markets, we continue to evaluate profitable growth opportunities in other markets as well. Cash flow and balance sheet. Operating cash flow generation. stood at INR 269 crores in H1 FY '27 compared to INR 147 crores in H1 FY '26. Net debt increased by INR 292 crores to INR 1,273 crores as of September 2026 compared to INR 981 crores as of March 2026. The increase in net debt was predominantly for CapEx projects of INR 351 crores during the half year. As a result, net debt to EBITDA stood at 2.2x and net debt to equity at 0.8x, marginally above our stated framework of below 2x and 0.75x, respectively, due to milestone-based payments for certain CapEx projects. We expect these metrics to be within the stated framework on a full year financial -- on a full financial year basis. We are also pleased that India Ratings and Research has upgraded ABD's rating by 2 notches to IND A+ AA- with a stable outlook. We remain focused on disciplined capital deployment. Our CapEx program is planned to be funded through internal accruals and debt, while maintaining leverage within our defined framework through the investment cycle. External environment. The external environment continues to support overall industry growth. Premiumization remains a structural trend in the Indian spirits market, supported by evolving consumer preferences and increasing acceptance of higher quality products across categories. The India U.K. free trade agreement is positive for ABD as it supports margin improvement and improved sourcing flexibility for the higher end portfolio over time. However, recently, some uncertainties have been raised by government authorities on the import duty of bulk scotch under the applicable HSN codes. The industry association, CIABC has taken up the matter with the relevant government authorities for an early resolution as clarity on the applicable duty structure will be important for the industry to fully realize the intended benefits of the India U.K. FTA. At the same time, we remain watchful of inflationary pressures, geopolitical developments and input cost volatility. Global supply chain disruptions continue to have an impact during H1 with an estimated impact of INR 53 crores, but our underlying business fundamentals remain resilient and our medium-term margin levers remain intact. The regulatory environment also remains supportive with most key state policy updates in place. We expect further momentum from the Telangana policy and anticipated price revisions, and we are seeing improving sentiment on the gradual clearance of outstanding dues in Telangana. Outlook. Looking ahead, we remain focused on driving premiumization-led growth while protecting the quality of margins. Growth will be supported by continued momentum in ICONiQ White growth in our other millionaire brands and increasing contribution from the ABD Maestro portfolio, the scale-up of The Indian Edit in premium whiskey and new opportunities in identified white spaces, including Deluxe Vodka. With the festive season ahead, we expect the top line momentum to continue. For Officer's Choice Blue, our focus remains on a competitive -- on a comprehensive brand reset through the packaging innovation undertaken to regain salience and strengthen competitiveness within the Prestige & Above segment. For Sterling Reserve B7, our priority is to strengthen its premium positioning and rebuild brand momentum within the Prestige & Above segment. Marketing efforts will be directed towards deepening consumer engagement, enhancing brand salience and improving relevance across key consumption occasions, thereby supporting a steady improvement in performance. As already stated, we are targeting a new packaging rollout in Q4 FY '27. Overall, we expect the top line to grow in line with the stated guidance of mid-teens. We will continue to invest behind our core brands, Super Premium to Luxury portfolio and organizational capabilities while maintaining FY '27 EBITDA margins broadly in line with FY '26. This will be supported by premium mix improvement, backward integration benefits, operating leverage and disciplined cost management, even as we absorb the short-term impact of supply chain disruptions. To summarize, our strategic priorities are clear: build on the strength of our core brands, accelerate premiumization, scale our Super Premium and Luxury portfolio, expand internationally and strengthen structural margins through backward integration. Supported by a stronger portfolio, a committed team, disciplined execution and a future-ready operating model, ABD is well positioned to deliver sustainable and profitable growth over the medium to long term. Thank you once again for your continued interest in ABD. With that, we will now open the floor for questions.

[Operator Instructions] The first question is from the line of Dhiraj Mistry from Jefferies.

I have only 2 questions. One is that if I look at ICONiQ White volume on a sequential basis in Q1, it was around 3.1 million case and this quarter, it is 3.2 million case. So quarter-on-quarter, the volume growth has not or more or less has remained flat. How do we expect going forward in ICONiQ White? Or is that brand has reached the mature level?

Thank you for your question. See, I think if you look at the growth of ICONiQ, we did 10.7 million cases in FY '26. In Q2 FY '26, which is last year, we did 2.6 million cases. And in the corresponding period now, we have done 3.2 million. So there is a growth of 26% -- 20.6%. However, Q1, the volume was 3.1 million. This is just an aberration. The plan for ICONiQ during the current year is to reach a level of close to 14 million cases, which is in excess of 25% growth by the year-end. And just to make a point here that ICONiQ White has started talking more than 1 million case every month from the first month of the current fiscal. So the growth of this brand is likely to continue.

Got it, sir. And second and last question is on CapEx front. We have announced quite a few CapEx over the last 2 years period. Do we think that -- is it safe to assume that the CapEx intensity or, let's say, the further CapEx announcement would get -- would be on hold or you would be looking at further CapEx? And in which segment you would be looking for that?

So see, it's like this that we have embarked upon a journey of approximately INR 1,600 crores of CapEx. Till FY '26, we have just spent 25% and over the next 3 years, we will spend the balance. In the current year, we've spent about INR 300 crores. We are spending this money for supply security for building bottling capacities, enhancing ENA capacities with having our own malt plant, the PET plant is already operative and is EBITDA accretive. So other than maintenance capital, which is a routine matter with any liquor business, right now, we don't see anything beyond the INR 1,600 crores being incurred.

Got it. And what would be the maintenance CapEx on an annualized basis, leaving apart this backward integration CapEx?

So with this kind of CapEx journey that we have undertaken and with 40 manufacturing plants all over the country, our annual CapEx -- maintenance capital -- CapEx would be in the region of INR 75 crores to INR 100 crores per annum.

The next question is from the line of Abneesh Roy from Nuvama.

Two questions. So first is on the asset-light model, which currently a pilot project is happening in Southeast Asia. How will be the revenue recognition [Technical Difficulty] that you will recognize the revenue and share some costs with the third party?

I'm sorry to interrupt you, sir. Your voice is not clear. Can you please use the handset?

Yes, I'm using handset only. Is it clear now?

Yes, sir. Please go ahead.

So this is on the tie-up in Malaysia, Southeast Asia. So how will you recognize the revenue? Is there a royalty involved? Or you'll be sharing some costs with them and revenue will come to you only on the pilot project?

So it's like this. It's like a contract bottling unit. We are sending our raw material and packaging material from India, and we will get back our business surplus, which will reflect in other income.

Okay. And in Karnataka, a lot of [Technical Difficulty] companies, both beer and spirits are seeing explosive growth. So if you could tell us how [Technical Difficulty] ICONiQ White.

So your voice is not actually clear. Would you mind?

Am I audible now?

Yes. Could you please repeat your question?

Sure, sure. So Karnataka, how has been your growth? The other spirits companies and beer companies have reported very strong growth -- explosive growth there. How is your growth in Karnataka? And how has been the overall pricing changes because regulations have changed in Karnataka for both ICONiQ White and Officer's Choice, how is the growth? And how is the overall competition in those 2 segments?

So just to fill you in, the Karnataka market is approximately 65 million cases per annum, which is 50 lakh cases a month. ABD is a small player there with about 40,000 cases to 50,000 cases per month. Premium brands in Karnataka are just about 10% to 12% of the market. Brands below the premium segment have taken a price cut by reducing the alcoholic strength of the product. It is still being -- it is yet to be seen how the market really evolves. As far as ICONiQ is concerned, we have started seeing growth over the last 2 months. We will be able to gauge the real result over the next 6 months only.

Understood. Last question so it's been around 6 months since you have been in the company [Technical Difficulty].

Sir, your voice is again breaking. Can you repeat your question?

I'm sorry for this. Am I audible now?

Yes.

Yes, sir.

Sorry, sir, for that. So it's been 6 months since you are in the company and 4 months since you have been MD, Amar. So what has been the key changes which you are happy about? What are the key bottlenecks still there? The Tamil Nadu state, if you could talk about that because that is opening up. But what is your sense on that market, say, next 2 years?

Okay. Let me first tackle the question relating to Tamil Nadu. See, Tamil Nadu is the biggest phenomenon that is likely to hit the liquor industry. It's a lease of fresh air that will take place. We anticipate the market to open up, which has -- which it has already started. New brands are getting registered. It is a market which is in excess of 50 lakh cases a month, one of the largest markets of the country. But with market liberalizing and opening up, we feel that just like UP had evolved as India's best alcohol market, it is Tamil Nadu that is going to do the same magic. I think we are seeing value accretion and margin accretion in the times ahead. It will happen not only to us, but all companies in the alco-bev space. With me in -- with me on the saddle for the last -- actually, I've been in the company for 6 months now. And I started taking charge from the month 1, so technically 4 months, but 6 months in action. So my focus is totally on driving top line growth, top line profitable growth and execution of CapEx journey, which is going to be value and margin accretive in the years to come. Now I must tell you that ABD is undergoing a transformation journey for the next 2 years. Premiumization is going to actually get -- actually pick up pace. There are [Technical Difficulty] buckets in which I feel the growth will happen. So first, I would like to say is that the company is poised for a value-led growth rather than just volume. I have been trying to mentally tune the entire set of people working with me on profitable volumes. Actually, ABD anyway did 36 million cases last year. But if we have to achieve our ambition of crossing the 50 million mark by FY '29, which is what is the goal we have set for ourselves, we have to achieve profitable growth. Premiumization journey has to pace up with ICONiQ, which will be the growth driver. We will achieve from 14 million cases this year that I plan to do, we will hit 20 million cases in the next 2 years. That's the goal that we have set for ABD internally. As you know, Officer's Choice Blue and Sterling Reserve B7 are power brands, which are powerful in select states. But put together, they are more than 5.5 million cases, which means huge volume. These brands need to be revived. Officer's Choice Blue in its new form to be distributed and built upon in the months ahead. In fact, the high point was 6 million in 2022. We will scale up the volumes of these brands in the next 2 years. The Indian Edit in the premium whiskey segment, Super Premium whiskey segment has been launched. The brand delivers high contribution. It's been in 7 states now. The reports that we are getting is extremely encouraging. So we see a future in this brand. We hope to maintain leadership position of Officer's Choice whiskey, which contributes to 40% market share and a gross margin of 45%. ABD Maestro Luxury portfolio needs hard work. Last year was launch and placement. We had a sales volume -- sales turnover of INR 20 crores. This year, we would end up doing INR 40 crores. So it's moving in the right direction. This year, we need to expand distribution, create visibility and consumer engagement. With the distribution of retail having been merged with ABD, it will get more power to the portfolio. So this is as far as brands are concerned. The next bucket I see is for CapEx and backward integration. We've talked about it in my opening speech, ensure that all backward integration is completed on time so that they become EBITDA accretive by FY '29. It is an ambitious INR 1,600 crore plus journey, which will give us 300-plus basis points in EBITDA margin by FY '28 and additional 150 basis points by FY '29. We have spent 25% up to FY '26, as I said, and the rest over the next 3 years. So as far as brand is concerned, the sales and marketing people as concerned the manufacturing and quality people, their mindset is being completely tuned to the ambitious growth and profitable objectives with premiumization. There are 1 or 2 other important areas that I would like to highlight, which we are working on. Travel retail creates visibility for the right [ TG ] for premium and luxury products that we focus available currently, ABD Maestro is available in 5 travel airports currently, which we will expand further. As far as exports is concerned, in FY '26, we hit 36 countries. Now we have -- in Q2 of FY '27, we have reached 42 countries. Our objective that we have internally is to reach 50-plus countries over the next 12 months. There is another bucket, which is CSD and paramilitary. The defense and paramilitary business has huge potential. We need to harness that. We have listed 4 new products this year, and they are expected to give us good returns. So there is a huge whole lot of work happening. The entire ABD team is working collectively. There's a huge mindset change, and it is eventually going to benefit the company.

The next question is from the line of Mihir Shah from Nuvama (sic) [ Nomura ].

This is Mihir Shah from Nomura. Firstly, congrats on the overall good performance. However, the anomaly is if you see the Prestige & Above group, it grew only by about 6%, while Mass Premium grew much higher at 15-odd percent. So I wanted to understand what led to the slowdown on Prestige & Above growth and what led to the acceleration in the Mass Premium. So that's my first question.

So I would first say that growth in the Mass Premium is 15.5% in volume terms and 16% in value terms year-on-year. Brands in whiskey and brandy have been responding very well in the southern markets, which contributes to more than 60% of the country's alcohol business. You would be glad to know that we started late in Andhra Pradesh, but we have reached a 10% market share today in Andhra as far as brandy is concerned, which is the largest brandy market. Telangana OC whiskey degrowth has been arrested in the last quarter. Officer's Choice remains the largest exported brand from India, leaders in GCC markets and growing fast in African markets. Officer's Choice as a brand, I said, that delivers 40% market share and a 45% gross margin, so it was important for us to concentrate on this brand and grow it from here. It's a cash generator, which funds growth and premiumization. We will -- you will see a complete brand reset with a completely new packaging look and feel and marketing communication by Q3. So Officer's Choice [Technical Difficulty] set to rule the market once again. We will remain focused on volume growth from this segment, which will be in the months ahead. Now you ask me why is the P&A growth lower? So P&A volume growth is 6% year-on-year, but value growth is 13.4%. Obviously, because the saliency of Mass Premium with the revival of this segment has improved in Q2, the saliency of P&A looks smaller, but the value growth is 13.4%. P&A growth largely is driven by ICONiQ, which has reached 10.7 million cases in FY '26. It's a large base also. But you will realize that the best has yet to come. The season is about to begin. The season ratio is 40 to 60. This year, we plan to sell 14 million cases and the large volumes are going to happen in H2. You would be aware that ICONiQ has emerged as the world's fastest-growing premium brand with -- and a millionaire brand for 3 consecutive years. OC Blue launched with new packaging is responding very well. Degrowth is getting arrested since Q2 over Q1. Sterling Reserve planned for a brand reset in Q4 in the months ahead. Indian Edit launched in 7 states, good reports from the market. ABD Maestro's 9 luxury products are being focused on with integration of retail sales with ABD. Therefore, if you will realize that there is a huge headroom for growth, we remain focused on taking P&A volumes to a 50% plus saliency level and 60% plus value level in the value saliency in the next 1 year. Brand will remain focused on delivering mid-teens to high teens plus growth in volume H2.

So which brand you said will deliver mid-teens to high teens? I think to reach 14 million cases, ICONiQ will have to grow by 30% actually.