Tilaknagar Industries Ltd. reported a 165.6% increase in revenue to ₹2,252.42 crore for the June quarter, driven primarily by the consolidation of the Imperial Blue brand acquisition. According to the latest financial results, the company's operating performance also improved with EBITDA rising 78.8% year-on-year to ₹168.92 crore from ₹94.45 crore in the previous year. However, net profit declined 64.3% to ₹31.59 crore from ₹88.5 crore a year earlier, primarily due to higher depreciation and finance costs, along with an exceptional loss of ₹30.12 crore related to the integration and transition of the Imperial Blue acquisition. The exceptional item represents approximately 1.3% of total revenue but consumed nearly half of the pre-tax profit, highlighting the immediate impact of acquisition integration costs.
Operationally, the company demonstrated strong performance with total volumes rising 172% year-on-year to 8.7 million cases and net sales realisation improving 5.3% to ₹1,183 per case. As reported by CNBC TV18, Mansion House Brandy registered volume growth of more than 7%, while Imperial Blue volumes grew 18% sequentially and expanded market share by around 150 basis points during the quarter. The premium brand Samsara Gin recorded more than 2.2 times the volumes reported in the year-ago period. Following the Imperial Blue acquisition, Tilaknagar Industries has become the largest prestige-and-above (P&A) spirits player in South India, excluding Tamil Nadu, with an estimated market share of around 40%. The acquisition was completed for a lump-sum cash consideration of ₹3,442 crore, with a deferred consideration of EUR 28 million payable after four years.
The company's adjusted EBITDA stood at ₹148 crore, excluding subsidy income, with management noting that EBITDA margin would have been 17% in the absence of inflationary cost pressures. According to the latest results, the company's net debt increased to ₹2,100 crore at the end of June 2026 from ₹1,911 crore at the end of March 2026. Despite the strong revenue growth, the company's EBITDA margin narrowed to 16.1% from 24% in the year-ago quarter, reflecting the integration costs and operational challenges. The absence of tax expense in both periods also indicates that the company may be utilizing tax losses or credits to offset taxable income, a common feature in large-scale restructuring phases.
Amit Dahanukar, Chairman & Managing Director, announced significant progress in integrating the Imperial Blue business during Q1 FY27, with around 90% of operations transitioned out of the Transition Services & Manufacturing Agreement (TSMA). Only one state remains to be completed, and exceptional transition-related costs are expected to decline significantly over the rest of FY27. Despite temporary disruptions caused by TSMA exit in Odisha, Punjab, Uttarakhand and Karnataka, as well as state elections in Assam and West Bengal, volumes remained resilient with total volumes rising 9% quarter-on-quarter, led by an 18% sequential growth in the Imperial Blue portfolio. The company expects the India-UK Free Trade Agreement to reduce Scotch import costs from Q3 FY27, while favourable excise policy reforms in Karnataka are supporting category growth.
The Board of Directors approved significant strategic initiatives including the appointment of Bhumika Batra as an Additional Independent Director for a three-year term commencing July 27, 2026. Ms. Batra brings over 22 years of experience in corporate laws, mergers, and acquisitions, and is a Partner with Crawford Bayley & Co. The company also approved the incorporation of a wholly-owned subsidiary in Nigeria, subject to regulatory approvals under the Foreign Exchange Management Act (FEMA) and Reserve Bank of India guidelines, signaling its intent to expand its global footprint beyond domestic operations. Management maintains confidence in delivering high single-digit to low double-digit volume growth in FY27, with revenue expected to outpace volume growth by 200-250 basis points. The company expects Imperial Blue to deliver double-digit volume growth during the year and anticipates cost synergies from the acquisition to drive 250-400 basis points of margin expansion in the acquired business.
