Tilaknagar Industries shares in focus after Imperial Blue acquisition lifts Q1 revenue

Shares of Tilaknagar Industries Ltd. will be in focus on Tuesday, July 28, after the liquor maker reported a sharp jump in June quarter revenue following the acquisition of the Imperial Blue brand, although higher depreciation, finance costs and one-time integration expenses weighed on profitability.

The company reported revenue of ₹1,046.03 crore for the quarter, up 165.6% from ₹393.91 crore a year ago, driven primarily by the consolidation of Imperial Blue.

Operating performance also improved, with EBITDA rising 78.8% year-on-year to ₹168.92 crore from ₹94.45 crore. However, EBITDA margin narrowed to 16.1% from 24% in the year-ago quarter.

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 ₹30.11 crore related to the integration and transition of the Imperial Blue acquisition.

The company said adjusted EBITDA stood at ₹148 crore, excluding subsidy income. It added that EBITDA margin would have been 17% in the absence of inflationary cost pressures.

Operationally, total volumes rose 172% year-on-year to 8.7 million cases, while net sales realisation improved 5.3% to ₹1,183 per case. 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. 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 said it 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 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.

Management reiterated its 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. It also expects Imperial Blue to deliver double-digit volume growth during the year.

The company expects cost synergies from the acquisition to drive 250-400 basis points of margin expansion in the acquired business, while lower Scotch import costs are expected to begin reflecting in financial performance from the third quarter of FY27.

Over the medium term, Tilaknagar Industries is targeting mid-teens volume growth between FY28 and FY30 and aims to achieve a consolidated EBITDA margin of 16-18% by FY29.

Tilaknagar Industries shares ended 0.9% higher at ₹445.80 on Monday. The stock has declined around 2% so far in 2026.