Shares of Som Distilleries and Breweries Ltd crashed 7% on 27 May despite the company receiving approval from the Telangana government to promote its beer brands within the state.

In its regulatory filing, the company said that getting permission was a significant step as the company is aiming to broaden its market share.

The filing added that Telangana is one of the largest beer-drinking markets in India.

The alcohol company went on to say that it anticipates a large increase in sales volume with the new permission in the near to medium term.

The company’s quarterly report, which was made public last month, showed notable gains in net profit and revenue for both the March quarter and the full fiscal year 2023–2024. The company’s consolidated revenue from operations in the March quarter climbed by more than 53% to Rs 738.71 crore from Rs 482.36 crore in the previous year. From Rs 500.79 crore in the December quarter, the company’s operating revenue grew 47.50% sequentially. The company’s operational revenue climbed by more than 64%, from Rs 1,498.04 crore in FY23 to Rs 2,464.28 crore in FY24.

The Som Distilleries and Breweries saw a more than 25% increase in their consolidated profit after tax (PAT) from Rs 15.87 crore in the same period of the previous fiscal year to Rs 19.98 crore in the March quarter. The company’s profit after tax (PAT) grew by more than 11% from quarter to quarter, beginning at Rs 17.99 crore in the December quarter. The company’s PAT climbed 43% to Rs 86.49 crore for the entire FY24 from Rs 60.3 crore in FY23.

At 1:27 pm, the shares of Som Distilleries were trading 4.92% lower at Rs 134.35 on NSE.