1. Distillery demerger and separate listing - The Board-approved demerger of the Distillery Division into KM Spirits and Allied Industries Ltd, with an appointed date of 1 April 2026, has cleared shareholder approval (30 May 2026), NCLT first motion (24 March 2026), and stock-exchange no-objection letters (January 2026). A separate listing creates a pure-play spirits entity that can attract its own investors and strategic partners, while the 1:5 share-entitlement ratio gives existing shareholders direct ownership in both businesses.
2. Country Liquor scale-up - Licensed Country Liquor capacity stands at 60 lakh litres after U.P. State Excise Department approval in October 2024, and management describes the segment as “growing day by day”. Country Liquor adds a branded, consumer-facing revenue stream inside the distillery business, lifting margins above those of bulk ethanol and rectified spirit sales.
3. Ethanol blending tailwind - India hit the E20 blending milestone in FY26, and the industry is pushing for a long-term policy with stable diversion quotas and assured pricing linked to FRP/MSP. A durable ethanol offtake framework would raise plant utilisation and revenue visibility for the 47.3 KLPD ethanol capacity, which already sells to OMCs under the central blending programme.
4. Cane-yield improvement programme - Field trials of new sugarcane varieties with ICAR-SBI and ISMA have produced 2-3 promising candidates showing higher yield and improved sugar recovery in the current year, indicating future potential for commercial adoption. Better cane per acre and higher recovery directly lift sugar-division margins - the ₹595-crore segment that drives over 90% of group revenue - without adding crushing capacity.
5. Energy-efficiency capex - The company invested ₹1.42 crore in energy-conservation capital projects during FY26. Lower energy cost per tonne of cane crushed or litre of spirit distilled flows straight to operating profit in a business where power and steam are material input costs.