I think this will be clearer in the Q1 FY26 concall held today. Once the transcript is available, we will have a better idea about it.
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Must listen concall:
Correct me if I am wrongā¦but adding 3k cr to 1.5k cr of revenue of tilaknagar we get close to 4.5k cr of revenueā¦i.e 2 times Price to sales for a company whose product mix is changing and margins are going to increaseā¦seems like a great bet to me.
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You have to add dilution money as well in the market cap
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cc: @Sridharj
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Shivani Dahanukar(Non-Executive Director, Tilaknagar Inds) pledges shares to Bajaj Finance for loanā¦
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Tilaknagar Industries -
Q1 FY 26 results and Concall highlights -
Q1 Outcomes -
Revenues - 409 vs 313 cr, up 30 pc
EBITDA - 94 vs 50 cr, up 88 pc ( margins @ 23 vs 16 pc ). Adjusted for subsidy, EBITDA stands @ 56 vs 45 cr with margins @ 15 vs 14.5 pc
PAT - 89 vs 40 cr
Q1 volumes @ 32.1 vs 25.4 lakh cases ( up 26 pc !!! )
FY 25 outcomes -
Revenues - 1434 vs 1394 cr, up 3 pc
EBITDA - 255 vs 185 cr, up 37 pc ( margins @ 17.8 vs 13.3 pc )
PAT - 230 vs 141 cr
Company has entered into a definitive arrangement with Pernod Ricard India to purchase Imperial Blue for 4150 cr ( Its the third largest selling whisky brand in India - by Volume )
Imperial Blue clocked a revenue of 3067 cr in FY 25 vs 1434 cr clocked by Tilaknagar Industries in the same FY
Geography wise breakup of Tilaknagar Industries revenues after the IB acquisition -
South - 50 pc
North - 23 pc
East - 13 pc
West - 14 pc
Before the acquisition, Tilaknagar Industries used to generate 93 pc of its revenues from South India
Also, before the acquisition, 91 pc of companyās revenues came from Brandy sales. Now the share of brandy ( post acquisition ) has fallen to 31 pc and the share of Whisky has shot upto 67 pc
Companyās organic launches ( recent ones ) -
Mansion House Whisky ( launched in Prestige plus segment )
Monarch Legacy Brandy ( in Luxury segment, priced > Rs 5000 / bottle )
Spaceman Spirits portfolio - Amara Pink Vodka ( price > Rs 2000 / bottle ), Sitara Rum ( priced > Rs 1000 / bottle ), Samsara Gin ( priced > Rs 1000 / bottle ). TI holds 21 pc stake in Spaceman spirits with option of hiking the stake in future
Companyās established brands include - Mansion House brandy, Blue Lagoon Gin, Napoleon brandy
Company shall use its strong distribution muscle to expand the reach of Spaceman Spiritās brands
ENA and Glass prices remained stable in Q1. Company expects them to be well behaved in near future as well
Cash on books before announcing the Imperial Blue acquisition @ 160 cr
Company shall fund the Imperial Blueās acquisition through a mix of Equity and Debt. Have sought a board approval to raise 2300 cr via preferential issue
Prestige and above segments continue to see very healthy growth rates across India in Q1 ( a trend similar to last few years ). Company is seeing very strong growth in Telangana and Karnataka
Mansion House Whisky ( a recent launch ) is seeing descent growth ( specially in NE India )
Company estimates - it should take aprox 6 months for them to fully integrate Imperial Blueās business with their operations
In the medium term ( after the Imperial Blue integration + some ramp up in their newly launched brands ) - company expects their EBITDA margins to stabilise in the 16-17 pc band ( also accounting for slightly higher margins for newer brands but increased promotion and advertisement costs )
Company did not comment on the margin profile of Imperial Blueās business due confidentiality clause attached to the deal
This acquisition makes the company own the top 2 selling brandy brands and 3rd largest selling Whisky brand in India - Quite an achievement ( IMHO )
Should continue to grow in mid to high teens - in volume terms ( Ex - Imperial Blue business ) for FY 26 and FY 27
Disc: studying, not holding, posted for educational purposes, not SEBI registered
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The Competition Commission of India (CCI) approved the acquisition of Imperial Blue whisky business of Pernod Ricard India by Tilaknagar Industries Ltd.
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Imperial Blue is powerful brand . Pernod could build upon this brand due to super marketing campaign and a great portfolio of brands .TIL with limited presence North East and West will face serious challenges . They have started hiring sales people at higher salaries from different companies. TIL as perse lack bandwidth to handle these brands and with huge debts on their books this acquisition will be nightmare for them . Knowing their management closely as i have worked for them and has seen their ways of working this can become a albatross around their neck .
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It is encouraging to see the significant progress the company has made in managing its liabilities, transitioning from a heavy debt load to a net cash positive position.
Here is the current status of the debt and the companyās track record of debt reduction:
Current Debt Status and Net Cash Position
The sources indicate that Tilaknagar Industries (TI) has not only reduced its debt but has achieved a Net Debt Free status and subsequently built up a significant net cash position.
ā¢ As of September 2024, the company turned net debt free, achieving this milestone well ahead of its stated target of March 2025.
ā¢ The company has continued to strengthen its balance sheet:
ā¦ As of December 2024, the gross debt was further reduced by ā¹47 crore during Q3 FY25, standing at ā¹45 crore, with a net cash balance of ā¹31 crore.
ā¦ As of March 2025, the company reported a strong net cash level of ā¹107 crore.
ā¦ As of June 2025 (Q1 FY26), the gross debt was ā¹39.1 crore, and the Net cash position reached ā¹163.4 crore.
The gross debt includes interest-bearing trade deposits.
History of Debt Reduction
The current financial strength represents a major turnaround from previous years.
ā¢ The company has come a long way from a peak debt of over ā¹1,100 crore as of March 2019.
ā¢ This turnaround was accomplished through a focus on profitable growth and cash flow management.
ā¢ Key actions that contributed to debt reduction include:
ā¦ Full repayment of the Term Loan with Kotak Bank during Q3 FY25.
ā¦ The successful resolution of legacy issues, including the restructuring of debt with EARC (Edelweiss Asset Reconstruction Company) and one-time settlements with all lenders.
ā¦ Finance costs have consistently decreased, falling from ā¹27 crore in FY24 to ā¹12 crore in FY25.
Future Strategy Regarding Debt and Cash
While the company is currently net cash positive, management remains committed to disciplined financial management, especially given recent strategic moves.
ā¢ The disciplined debt management and focus on efficient working capital levels remain key strategic priorities.
ā¢ The strong cash reserves and balance sheet provide the ability to fund organic business expansion and remain open to inorganic opportunities.
ā¢ For the recent Imperial Blue acquisition, the company intends to finance the substantial consideration (approximately ā¬413 million) with an optimal mix of equity and debt (approximately 1:1).
ā¢ Despite taking on new debt for the acquisition, TIās long-term goal is prudent balance sheet management, aiming to reduce the Net Debt to EBITDA ratio to below 1.0x by the end of FY29.
This commitment to reducing debt and maintaining a strong cash position allows the company to fund its ambitious growth trajectory, shifting its identity from a regional brandy player to a national, multi-category player.
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Tilaknagar Industries Q2 FY2026 Concall
Growth:
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Volume grew 16.2% YoY in Q2, with H1 FY26 revenue growth of 17.4% YoY.
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NSR (net sales realization) rose 1.8% QoQ from INR 1193 to INR 1215 per case.
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H1 volume growth outlook is mid-teen percentage for FY26, expected to moderate to low double-digit to early teens growth in FY27 and FY28.
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Revenue growth from FY27 onwards expected to exceed volume growth by 200 to 300 basis points.
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The company projects continued volume growth in mid-teens for FY26 and sustained margin levels near current performance on a standalone basis.
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Input costs like ENA and glass remained stable, supporting margin stability.
Andhra Pradesh Market:
AP market share improved from ~10% to 12%, good growth over 20%, gaining share from local players.
Prag capacity increasing from 0.6 million to 3.6 million cases per annum; commissioning by H1 FY27; no current plan to manufacture Spaceman portfolio at Prag.
Maharashtra Made Liquor (MML) Policy:
Internal and policy considerations are being assessed.
Maharashtra impact still early to assess due to new MML policy; sequential volume growth in Maharashtra observed.
Brandy:
Brandy salience remains steady around 30-35%.
Samsara new flavors (Jamun, Pink Salt, Mango Jalapeno) launched in Goa and rolling out to other states soon.
Synergy is visible as spaceman spirit can be utilized distribution network of Tilkanagar Industries.
Imperial Blue integration:
CCI approved.
Once integrated, new guidance will be provided.
Disclosure: Invested
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Choice Equity broking - TP: 650 Rs.
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Hi, Iām deeply invested in TI, but I donāt think IB and MH is of great value. I am bullish on a slightly long term play of newer brands in IMFL by them. I think at $1.2B mcap, itās a reasonably valued. But Iām interested in contrarian views on this to debate.
Iām not bullish on USL, I feel India alcobev can only be handled at a very premium level.
Having seen the transition of Radico, I donāt see another player other than TI. Donāt think ABD can pull off anything.
Any views on TI management? In their latest preferential, MK, MA and many other big investors have taken warrants and shares at 388.
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TI Managementās integrity is doubtful and are known for not paying their vendors on flimsy grounds .Any employee leaving does not get his full and final settlements . They already got their debt resettled through Edelweiss once. Known for fudging books and results .TIL is a 2 brand company i.e MHB and Courier Napeolean Brandy and has category leadership in brandy . TIL is getting benefitted from AP market opening up and might also benefit through MML policy implemented in Maharashtra. IB acquisition looks good strategically but knowing management bandwidth it would be a challenge .For IB team they have hired people from industry at much higher salaries and management is known to loose interest very soon . Management was earlier under influence of some Baba and lots of company decisionās were taken by him .
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