Combined secondary sales (south India, Dec)
2.1M cases
N/A
First month under TI ownership; resulted in 32% market share in prestige segment.
TILAKNAGAR
Other
10 Feb 2026
Tilaknagar Industries Ltd — Q3 FY26
Tilaknagar Industries reported a transformative Q3 FY26, with revenue surging 90.5% YoY to ₹664 crore, driven by the first month of Imperial Blue (IB) consolidation.
✓ Verified against BSE filing
2-Min Summary
Tilaknagar Industries reported a transformative Q3 FY26, with revenue surging 90.5% YoY to ₹664 crore, driven by the first month of Imperial Blue (IB) consolidation. EBITDA grew 82.3% YoY to ₹110 crore, with margins at 16.6%. IB contributed 1.8 million cases in December, helping TI achieve a 32% market share in southern India's prestige segment. Excluding IB, organic volumes grew 16.8% YoY. Management guided for 150-250 bps margin expansion for the combined business over 24-36 months and high single-digit to low double-digit volume growth in FY27. Key risks include integration disruptions, MML competition in Maharashtra, and elevated debt of ₹2,100 crore. The company expects net debt/EBITDA below 1x by FY29.
Key Numbers
Imperial Blue volume (Dec)
1.8M cases
N/A
Achieved in first month post-acquisition; brand is India's third-largest whiskey.
Overall volume growth (Q3)
5.3M cases
+76.1% YoY
Includes IB for December; ex-IB volumes grew 16.8% YoY.
IB margin expansion target
250-350 bps
+250-350 bps
Over next 24 months on acquired business; steady-state IB margin was 11.7%.
Management Guidance
Combined business volume growth FY27: high single-digit to low double-digit
Expect high single-digit to low double-digit volume growth for the combined business in FY27, followed by low double-digit growth in subsequent years.
growthConsolidated EBITDA margin expansion: 150-250 bps over 24-36 months
Expect consolidated EBITDA margins to expand by 150 to 250 basis points over the next 24 to 36 months.
marginsIB margin expansion: 250-350 bps over 24 months
Expect Imperial Blue margins to expand by 250 to 350 basis points over the next 24 months from the steady-state margin of 11.7%.
marginsNet debt/EBITDA below 1x by FY29
Expect net debt to EBITDA ratio to go below 1 time by fiscal year 2029.
otherKey Risks
Integration execution risk
Operational integration of Imperial Blue is complex; any disruption in bottling or distribution could impact volumes.
high · management_commentaryMML competition in Maharashtra
Introduction of MML in Maharashtra has caused the prestige segment to decline ~25%; IB maintained share but volumes are under pressure.
medium · analyst_questionHigh debt burden
Debt of ₹2,100 crore with ballooning repayment structure; interest costs could pressure profitability.
high · data_observationTelangana government dues
Increased receivables from Telangana government are a concern; industry associations are engaging for clearance.
medium · analyst_questionNotable Quotes
In the very first month of Imperial Blue under TI ownership, we achieved a combined secondary sale of 2.1 million cases in southern India in the month of December.
We are planning a phase-wise exit from TSMA with the aim of getting significant operations under TI belt by Q4 FI26.
During the integration phase, we are also undertaking cost-saving initiatives for the Imperial Blue business, which will result in margin expansion by 250 to 350 basis points on the acquired business over the next 24 months.