Tilaknagar Industries Q1 FY27 Earnings Call Transcript Highlights: Record Sales, Imperial Blue Expansion and FY27 Guidance
Tilaknagar Industries Limited (TI), one of India’s leading alcoholic beverage companies, delivered an impressive performance in the first quarter of FY27, driven by the successful integration of Imperial Blue and strong demand across its portfolio. The management highlighted record sales volumes, expanding market share, and optimistic growth plans during its Q1 FY27 earnings conference call.
Record Monthly Sales and Market Leadership
The company achieved its highest-ever monthly sales of 3.4 million cases in June 2026, with Imperial Blue becoming the largest-selling Deluxe Whisky in India.
Tilaknagar also strengthened its leadership position by:
- Remaining the largest premium and above (P&A) liquor company among Indian players
- Becoming the third-largest overall IMFL company in India
- Holding around 40% market share in South India (excluding Tamil Nadu)
- Emerging as the largest IMFL player in Telangana during June 2026
The company has also reintroduced Imperial Blue in Delhi, one of India’s key liquor markets, and expects the brand to regain its historical market position over the next 12-18 months.
Strong Volume Growth in Q1 FY27
The integration of Imperial Blue significantly boosted volumes.
Highlights include:
- Overall sales volumes jumped 172% year-on-year
- Sequential volume growth stood at 9%
- Imperial Blue volumes increased 18% quarter-on-quarter to 5.4 million cases
- Mansion House Brandy continued its steady performance with 7% YoY growth
Management noted that these results were achieved despite temporary operational disruptions during April.
Revenue Crosses ₹1,000 Crore
Financial performance remained strong during the quarter.
Key numbers:
- Net Revenue: ₹1,046 crore (up 166% YoY)
- Adjusted Revenue: ₹1,026 crore
- Net Sales Realization (NSR): ₹1,183 per case
- EBITDA: ₹169 crore
- Adjusted EBITDA: ₹148 crore
- Adjusted Profit After Tax: ₹76 crore
The company reported higher packaging costs due to rising glass prices caused by geopolitical tensions. However, lower Extra Neutral Alcohol (ENA) prices helped partially offset these cost pressures.
Without the packaging inflation, management believes EBITDA margins would have been close to 17%.
Debt Reduction Remains a Key Focus
Following the Imperial Blue acquisition, Tilaknagar’s financial position remains under control.
As of June 30, 2026:
- Gross Debt: ₹2,241 crore
- Net Debt: ₹2,100 crore
Management aims to reduce net debt to approximately ₹1,700 crore by March 2027 through better working capital management and stronger cash generation.
The company also reiterated its long-term goal of reducing its Net Debt-to-EBITDA ratio below 1x by FY29.
Imperial Blue Integration Nearly Complete
The acquisition integration has progressed faster than expected.
According to management:
- Around 90% of Imperial Blue manufacturing operations have already shifted to Tilaknagar facilities.
- Only one state remains under transition.
- Complete integration is expected before March 2027.
The company also expanded its workforce from around 350 employees before the acquisition to more than 850 employees, strengthening sales and manufacturing capabilities across India.
Premium and Luxury Portfolio Expanding
Apart from mass-market brands, Tilaknagar continues investing in premium products.
The company expanded the presence of:
- Monarch Legacy Edition Brandy
- Seven Islands Pure Malt Whisky
- Samsara Gin
Its craft spirits business also recorded strong momentum, with sales more than doubling year-on-year.
New launches include:
- Samsara Pink
- Jamun & Pink Salt Gin
- Raw Mango & Jalapeno Gin
- House:Pour Picante ready-to-pour cocktail
Tilaknagar also increased its stake in Bartisans from 36.2% to 41.5% to strengthen its quick-commerce presence and support product innovation.
FY27 Outlook Remains Positive
Management maintained its guidance for FY27.
Expected performance includes:
- High single-digit to low double-digit volume growth this year
- Mid-teen annual volume growth from FY28 onwards
- Revenue growth expected to exceed volume growth by around 300 basis points
- EBITDA margins targeted at 16-18% by FY29
The company plans to launch new products over the next few years while using the nationwide distribution network of Imperial Blue to expand premium and luxury offerings.
Positive Outlook for Key Markets
Management highlighted several encouraging developments:
- Karnataka volumes have improved after recent pricing reforms.
- Market share has increased across all major regions after the Imperial Blue acquisition.
- Telangana price revisions are expected soon, which could add 150-200 basis points to margins.
- Tamil Nadu remains a long-term opportunity if future policy changes open the market further.
Management’s Key Priorities
Tilaknagar outlined four major strategic priorities:
- Deliver consistent double-digit volume growth through stronger brand demand.
- Improve profitability through supply chain optimization and cost efficiencies.
- Reduce debt while maintaining disciplined capital allocation.
- Expand the company’s premium and luxury liquor portfolio using its nationwide distribution network.