Som Distilleries loses Bhopal plant license for FY27, recovery derailed
MP Excise Department rejects new license for the core Bhopal unit, already suspended since early 2026. The company had guided ₹1,400-1,500 crore FY27 revenue, now even that looks out of reach.
— 3 earlier stories on Som Distilleries And Breweries Ltd. →What's new
- MP Excise Department rejected Som Distilleries' application for a new excise license for its Bhopal plant for FY2026-27.
- The company said its submissions and court orders weren't given due consideration; it is pursuing legal remedies.
- Bhopal accounts for over 20% of capacity; its shutdown has already caused a 14.8% revenue decline in FY26.
Why this matters
This isn't just an extension of the suspension; it's an outright denial, a material escalation that resets expectations for FY27. The Bhopal plant is the company's core; without it, Som Distilleries can't credibly defend its ₹1,400-1,500 crore revenue guidance. Credit rating downgrades will accelerate, and the stock, already trading at 151x trailing earnings, is pricing in a recovery that just became far less likely.
What we're watching
- Whether Som Distilleries gets a stay from a higher court in the next few weeks.
- How quickly the company can shift production to its new Uttar Pradesh brewery (₹600 cr capex).
- Downward revisions to FY27 guidance, likely the next trigger for the stock.
The full read
Som Distilleries' Bhopal plant was already shut: license suspended since early 2026, forcing a 14.8% revenue decline in FY26 and a ₹42.9 crore EBITDA loss in the March quarter. Now the Madhya Pradesh Excise Department has rejected its application for a new license for FY2026-27 outright. That is a step change in severity, not a delay but a denial. The company had guided ₹1,400-1,500 crore in FY27 revenue, counting on restarting Bhopal to get there. That is no longer plausible. Legal remedies are being pursued, but courts rarely force states to issue excise licenses. The ₹600 crore Uttar Pradesh greenfield brewery is years away from filling the gap. The stock trades at 151x trailing earnings, a multiple that assumed a recovery. That assumption just broke.
Questions answered
- What exactly did the MP Excise Department reject?
- It rejected Som Distilleries' application for a new excise license for the Bhopal plant for FY2026-27, meaning the plant cannot legally produce alcohol during that period.
- Was the Bhopal plant already shut before this rejection?
- Yes. The plant had been under a temporary license suspension since early 2026. This denial extends the shutdown indefinitely.
- How critical is the Bhopal plant to Som Distilleries?
- The Bhopal facility is a core production unit, accounting for well over 20% of the company's total capacity. Its shutdown caused a 14.8% revenue drop in FY26 and a ₹42.9 crore EBITDA loss in the March 2026 quarter.
- What can Som Distilleries do now?
- Management said it is pursuing all legal remedies, including appeals or stays from higher courts, and engaging with stakeholders to mitigate the impact.
- What does this mean for the company's FY27 revenue guidance of ₹1,400-1,500 crore?
- The rejection makes that guidance extremely difficult to achieve, because the Bhopal plant is a key capacity source. Downward revisions are likely.
Som Distilleries And Breweries Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on SDBL →- 19 Jun 2026 · 8:13 PM IST Som Distilleries loses Bhopal plant license for FY27, recovery derailed
- 8d ago Som Distilleries starts UP brewery as Bhopal shutdown still drags
- 17d ago Som Distilleries missed its revenue target by ₹267 cr. Bhopal is still down.
- 18d ago Som Distilleries posts ₹42.9 cr EBITDA loss in Q4 as Bhopal plant stays shut