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    Tilaknagar Industries Limited

    TI
    Fast Moving Consumer Goods·14 Nov 2025
    Management Summary

    Tilaknagar Industries reported a strong Q2 FY26, maintaining growth momentum with 16.2% YoY volume growth and improved NSR. Profitability metrics, including EBITDA and PAT, also showed healthy growth. The company made significant progress on the Imperial Blue acquisition, receiving CCI approval and expecting closure in Q3 FY26, which is poised to transform its market presence. Strategic initiatives like premium brand launches and distribution expansion for Spaceman Spirits Lab are also contributing to growth.

    Highlights

    5

    • Strong volume growth of 16.2% YoY in Q2 FY26, driven by premiumization strategy and execution.

    • Net Sales Realization (NSR) per case improved to Rs. 1,215 in Q2 FY26, a 1.8% QoQ growth, indicating sequential improvement since Q3 FY25.

    • EBITDA for Q2 FY26 was Rs. 60 crore, with adjusted YoY growth of 8.2%, and PAT grew 10.0% YoY (adjusted for subsidy).

    • Market share in Andhra Pradesh improved from approximately 10% to 12%, with the overall industry growing over 20% in H1 FY26.

    • Competition Commission of India (CCI) approval received for the Imperial Blue acquisition, with transaction expected to close in Q3 FY26, strengthening market position.

    What Changed2

    vs Q3 FY26

    Risks discussed3 → 2 (-1)Q&A highlights6 → 8 (+2)
    Key financials

    Metrics

    10

    Periods

    4

    Q2 FY26

    5
    • Revenue
      ₹398 Cr
    • Volume Growth
      16.2%
      YoY+16.2%
    • NSR per Case
      ₹1,215
      QoQ+1.8%
    • EBITDA
      ₹60 Cr
    • EBITDA Margin
      15.1%

    Q2 FY26, adjusted

    1
    • PAT
      ₹53 Cr
      YoY+10%

    H1 FY26

    3
    • Revenue
      ₹807 Cr
      YoY+17.4%
    • EBITDA
      ₹155 Cr
    • EBITDA Margin
      19.2%

    H1 FY26, excluding subsidy

    1
    • PAT
      ₹103 Cr
      YoY+24.5%

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹34 crores this quarter · ₹59 crores (FY26) planned

    Debt

    Debt disclosed

    M&A

    Imperial Blue business division (from Pernod Ricard India)

    acquisition · pending regulatory

    M&A

    Spaceman Spirits Lab (SSL)

    joint venture · integrated

    Liquidity

    Cash ₹1,086 crores

    Net cash position includes Rs. 986 crore from preferential issue of equity and warrants' subscription.

    Guidance & targets

    8
    CategoryTargetPriority
    Volume
    Volume Growth
    mid-teen
    		High
    Volume
    Volume Growth
    low double digit to early teens
    		High
    Revenue
    Incremental Revenue Growth (over volume growth)
    200 to 300 basis points
    		High
    Margin
    EBITDA Margin (Standalone)
    somewhat similar to H1, maybe slightly higher
    		High
    Margin
    EBITDA Margin (Standalone)
    around 16%-odd
    		High
    M&A
    Imperial Blue Acquisition Closure
    completed
    		High
    Capex
    Prag Project Commissioning
    commissioned
    		High
    Tax
    Tax Incidence (post IB acquisition)
    no tax incidence
    		High

    Imperial Blue Acquisition Status

    Q3 FY26
    CurrentCCI approved, integration started
    TargetTransaction closed

    Why it matters

    The closure of this major acquisition will significantly impact the company's market position, financial structure, and future guidance.

    The transaction is expected to be completed in Q3 FY26 and we look forward to welcoming Imperial Blue into our fold.

    How to verify

    capital_allocation.m_and_a[target='Imperial Blue business division (from Pernod Ricard India)'].status

    Risks & concerns

    2
    RiskSeverity

    Confidentiality obligations for Imperial Blue acquisition

    Management cannot share specific details like employee numbers or financial specifics until the deal closes due to confidentiality. — Management acknowledged

    low

    Uncertainty regarding Maharashtra Made Liquor (MML) policy participation

    Management is assessing policy considerations for MML and refraining from commenting on participation, indicating potential regulatory complexities. — Management acknowledged

    medium

    Q&A highlights

    8

    “As far as Andhra market is concerned, Abneesh, we are seeing good growth in Andhra market. Ameya can comment on the specifics. But in terms of market share, exit market share with the earlier regime was approximately 10% and currently, it stands at around 12%. We have seen an improvement in our market share.”

    Management confirmed market share gains in a key state, indicating competitive strength and positive impact of market opening.

    asked by Abhneesh Roy

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Driven by Premiumization

    Tilaknagar Industries delivered a robust Q2 FY26, with volume growth of 16.2% YoY. Net Sales Realization (NSR) per case increased by 1.8% QoQ to Rs. 1,215, demonstrating sequential improvement. Revenues for the quarter stood at Rs. 398 crore, with adjusted revenue growth of 9.3%. This performance highlights the continued success of the company's premiumization strategy and focused execution across key markets.

    02

    Imperial Blue Acquisition Nears Completion

    A major milestone was achieved with the Competition Commission of India (CCI) granting approval for the acquisition of the Imperial Blue business division from Pernod Ricard India on October 7, 2025. The transaction is expected to close in Q3 FY26 and will be funded through an almost equal combination of equity and debt. Integration efforts are already in progress, with talented professionals joining, positioning the company for its next phase of growth.

    03

    Strategic Portfolio Expansion and Distribution Enhancements

    The company expanded its luxury and super-premium portfolio with the launch of Monarch Legacy Edition Brandy in new markets, now available in 6 states. Distribution was further strengthened through a usership agreement with Spaceman Spirits Lab (SSL), with the SSL portfolio now distributed in Odisha and Puducherry, and exported internationally. Tilaknagar Industries holds a 21.36% stake in SSL and plans to increase it, aiming to cover all major IMFL categories.

    04

    Andhra Pradesh Market Growth and Capacity Expansion

    Tilaknagar Industries saw strong growth in Andhra Pradesh, improving its market share from approximately 10% to 12%. The overall industry in the state grew by over 20% in H1 FY26. To support this growth, the Prag Distillery's capacity is being expanded from 6 lakh to 36 lakh cases per annum with a capex outlay of Rs. 59 crore. Rs. 34 crore of this capex was paid in Q2, and commissioning is expected by H1 FY27.

    05

    Stable Input Costs and Positive Margin Outlook

    Input costs for ENA and glass remained stable during the quarter, contributing to a conducive cost environment. For FY26, standalone EBITDA margins are expected to be similar to H1, potentially slightly higher. Looking ahead to FY27-FY28, standalone EBITDA margins are projected around 16%. The company plans to provide revised margin guidance for the combined business once the Imperial Blue deal is closed.

    06

    Strong Financial Position and Funding

    The company reported a net cash position of Rs. 1,086 crore as of September 2025. This includes Rs. 986 crore raised through a preferential issue of equity shares and warrants, which saw strong participation from marquee institutional investors and the promoter group. This robust financial position supports the funding of strategic acquisitions and capacity expansions.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.