• Event Type: Earnings Conference Call for Q1 FY27 results discussion
  • Date and Time: Tuesday, July 28, 2026 (time not specified in transcript)
  • Purpose: Discussion of Q1 FY27 financial results and business performance, including Imperial Blue integration updates and future guidance
  • Management Participants:
  • Mr. Amit Dahanukar, Chairman and Managing Director
  • Mr. Ameya Deshpande, Chief Strategy Officer
  • Mr. Rajesh Choudhary, Chief Financial Officer
  • Ms. Sanaya Dahanukar, General Manager - Growth and Innovation
  • Mr. Siddharth Rangnekar from CDR India (Moderator)
  • Availability: Transcript made available on company website www.tilind.com and stock exchange websites
  • Compliance: The call included forward-looking statements with appropriate disclaimers as per the results presentation

Financial Highlights Disclosed

  • Volume Performance:
  • Overall volumes increased 172% YoY and 9% QoQ
  • Imperial Blue volumes increased 18% QoQ to 5.4 million cases
  • MHB grew 7% YoY
  • Record monthly volume of 3.4 million cases achieved in June 2026
  • Financial Metrics:
  • Net Revenue: ₹1,046 crore (166% YoY growth)
  • Net Revenue (adjusted for subsidy): ₹1,026 crore (189% YoY growth)
  • Gross Profit (adjusted for subsidy): ₹432 crore with margin of 42.1%
  • EBITDA: ₹169 crore (79% YoY growth) with margin of 16.1%
  • EBITDA (adjusted for subsidy): ₹148 crore with margin of 14.5%
  • PAT (adjusted for exceptional items): ₹96 crore (9% YoY growth) with margin of 9.4%
  • PAT (adjusted for subsidy): ₹76 crore with margin of 7.4%
  • Exceptional expense: ₹30 crore (TSMA fees and integration-related expenses)
  • Debt Position:
  • Gross debt: ₹2,241 crore as of June 30, 2026
  • Net debt: ₹2,100 crore
  • Target net debt: ₹1,700 crore by March 2027
  • Net debt-to-EBITDA target: Below 1.0x by FY29
  • Margin Impact:
  • Inflationary pressures on packaging inputs (particularly glass) affected gross margins
  • Without inflationary pressures, gross margin would have been ~44.5% and EBITDA margin ~17%
  • ENA prices softened during the quarter

Business Updates and Guidance

  • Imperial Blue Integration:
  • 90% of IB business successfully transitioned to Tilaknagar operated units
  • Only 1 state remains under TSMA, expected to transition by March 2027
  • IB reintroduced in Delhi market in July 2026
  • Target to achieve historical peak volume of 0.5 million cases in Delhi within 12-18 months
  • Market Position:
  • Tilaknagar maintained position as largest P&A player among domestic companies and third largest overall
  • 40% market share in South India (ex-Tamil Nadu)
  • Largest IMFL player in Telangana in June 2026
  • Luxury Portfolio Expansion:
  • House of TI brands expanded to West Bengal
  • Spaceman Spirits (SSL) more than doubled sales in Q1 FY27 vs Q1 FY26
  • New launches: Jamun & Pink Salt, Raw Mango & Jalapeno flavors
  • House:Pour Picante ready-to-pour drink launched in agave/tequila space
  • Increased stake in Bartisans from 36.2% to 41.5%
  • Future Guidance:
  • FY27 volume growth: High single-digit to low double-digit for combined business
  • Beyond FY27: Annual volume growth in mid-teens with revenues growing ~300 bps higher than volume growth
  • Consolidated EBITDA margins target: 16%-18% by FY29
  • FY27 margin expected to improve from 15.5% baseline of Q4 FY26

Additional Notes

  • The document is a regulatory filing containing the transcript of the earnings conference call
  • The transcript includes full Q&A session with analysts from Nuvama Wealth Management, HDFC Securities, Choice Equities, Systematix Group, Bowhead India Fund, and Eyesight Fintrade
  • NSR calculation methodology changed to reduce cash discounts, breakages and wastages (no impact on reported net revenues)
  • Expecting price increase in Telangana soon, which could provide 150-200 bps incremental margin impact annually