Tilaknagar Industries, India's largest premium brandy maker, is reporting its second full quarter with Imperial Blue in the fold after a transformational FY26 in which volumes grew 67.6% and net revenue rose 69.9%. The print will speak to whether EBITDA margin holds near the 14.5% subsidy-adjusted Q1 base amid glass packaging inflation, and whether net debt moves from Rs. 2,100 Cr toward the ~Rs. 1,700 Cr March 2027 target.
| Results date | October 30, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,046 Cr (net) |
| Previous quarter PAT | Rs. 32 Cr (reported); Rs. 62 Cr excluding exceptional items |
| Previous quarter EBITDA margin | 16.1% reported; 14.5% subsidy-adjusted |
| Net debt (latest quarter) | Rs. 2,100 Cr at Jun-26 |
| Market cap | Rs. 12,216.39 Cr |
| CMP | Rs. 492.8 |
The Board will meet on October 30, 2026 to consider the Q2/H1 FY27 results; the trading window, closed since October 1, reopens 48 hours post-results.
The quarter is the first test of whether Tilaknagar can hold margins near the 14.5% subsidy-adjusted Q1 base while glass packaging inflation — which cut Q1 gross margin by 305 bps — persists, with soda ash spot down ~10% QoQ offering possible relief only late in the period. Growth is expected to be share- and mix-led rather than market-led: national spirits volumes grew only ~2% and Karnataka IML volumes rose just 1.52% in Jul-Sep, so the focus falls on whether Imperial Blue sustained its 2 mn+ monthly cases and ~150 bps QoQ share gain after record July Karnataka sales of 3 lakh cases (+~30% YoY). Management has guided FY27 volume growth of high single-digit to low double-digit with revenue growth of 200-250 bps above volumes, and reiterated confidence in improving upon the 15.5% EBITDA margin baseline set in Q4 FY26, with a significant uptick weighted to Q3 and Q4. The India-UK FTA, notified July 15, 2026 with Scotch duty cut from 150% to 75%, is guided to benefit financials only from Q3 FY27, while the Telangana price increase management expected "soon" had no confirming notification in the quarter. Net debt of Rs. 2,100 Cr at Jun-26 versus the ~Rs. 1,700 Cr March 2027 target, TSMA fees halving from ~Rs. 8 Cr/month, and the CFO transition following Rajesh Choudhary's October 8 resignation are the other threads the call will likely address.
Guidance scorecard for FY27: Management's July 2026 guidance set the markers this print will be measured against.
Imperial Blue volume run-rate and NSR mix
TSMA exit and cost savings flow-through
Risks and governance overhangs
Growth pipeline and capital items
Imperial Blue expanded its market share across India by ~150 bps QoQ in Q1 FY27 and crossed 2 mn cases in both May and June 2026, contributing 62.07% of TI's Q1 volumes of 8.7 mn cases. In July 2026, IB sold 1.5 lakh+ cases in Karnataka (+50%+ YoY) with a 43% deluxe whisky segment share.
Integration is 90%+ complete with one state remaining, and the maximum exit is guided for Q4 FY27. TSMA fees have already fallen from ~Rs. 22 Cr/month in Q3 FY26 to ~Rs. 8 Cr/month in Q1 FY27, and are projected to halve again for the remainder of FY27.
Net debt stood at Rs. 2,100 Cr at June 30, 2026, and management targets approximately Rs. 1,700 Cr by March 2027 — an intended reduction of ~Rs. 400 Cr in FY27. The longer-term goal is net debt/EBITDA below 1.0x by FY29.
The FTA, notified July 15, 2026, cuts Scotch import duty from 150% to 75%, and management has cited it as a cost-optimization lever targeting 250-400 bps margin expansion on the acquired business within 24 months. The reduced import costs are expected in financials from Q3 FY27.
Net revenue rose to Rs. 1,046 Cr in Q1 FY27, up 165.5% YoY and the first-ever Rs. 1,000 Cr+ quarter, driven by the Imperial Blue acquisition and 8.7 mn cases of volumes (+172% YoY). Ex-IB volumes grew 3.8% YoY, with Mansion House Brandy at 2.6 mn cases (+7%+ YoY).