Financial Performance Summary

Revenue Performance

  • Net revenue from operations: ₹1,046 crores vs ₹394 crores in previous year (166% YoY growth)
  • Adjusted for subsidy: Net revenue at ₹1,026 crores (189% YoY growth)
  • First-ever quarterly net revenue exceeding ₹1,000 crore

Volume Metrics

  • Total volume: 8.7 million cases (172% YoY growth)
  • Quarter-over-quarter volume growth: 9%
  • Mansion House Brandy (MHB): 2.6 million cases (7%+ YoY growth, 1%+ QoQ growth)
  • Imperial Blue (IB): 18% QoQ growth
  • Imperial Blue crossed 2 million cases in both May and June 2026

Profitability Metrics

  • EBITDA: ₹169 crores vs ₹94 crores (79% YoY growth)
  • Adjusted for subsidy income: EBITDA ₹148 crores (166% YoY growth)
  • EBITDA margin: 14.5%
  • Management indicated margin would have been ~17% excluding inflationary pressure impact
  • PAT (Profit After Tax): ₹96 crore (9% YoY growth)
  • Adjusted for subsidy income: PAT increased by 52% YoY
  • Adjusted for subsidy and inflationary pressure: margin would have been ~10%

Market Position

  • Largest domestic Prestige & Above (P&A) IMFL player
  • Third-largest P&A player in India
  • Largest P&A player in South India with ~40% market share (excluding Tamil Nadu)
  • Imperial Blue expanded market share across India by ~150 bps QoQ

Management Commentary & Strategic Updates

Integration Progress

  • ~90% of Imperial Blue operations transitioned out of Transition Services & Manufacturing Agreement (TSMA)
  • Only one state remaining to complete integration
  • Exceptional costs relating to transition expected to reduce significantly over remainder of FY27

Market Challenges

  • April 2026 impacted by TSMA exit-related disruptions across Odisha, Punjab, Uttarakhand and Karnataka
  • State elections in key markets (Assam and West Bengal) created temporary headwinds

Cost Pressures

  • Ongoing geopolitical tensions led to inflationary pressures across packaging inputs, particularly glass
  • Meaningful increase in packaging costs during the quarter
  • Gross margins were under pressure due to packaging cost inflation
  • Extra Neutral Alcohol (ENA) prices softened, partially offsetting cost pressures

Future Margin Outlook

  • Confident of improving upon the 15.5% baseline EBITDA margin achieved in Q4 FY26
  • Margin expansion supported by ongoing cost optimization initiatives across:
  • Packaging materials
  • Manufacturing efficiencies
  • Supply chain operations

Policy Developments

  • India-UK Free Trade Agreement came into effect in mid-July 2026
  • Reduced Scotch import costs expected to show in financials from Q3 FY27
  • Karnataka (large market for IB and MHB) witnessing strong growth due to recent excise policy reforms

Growth Strategy

  • Focus shifting toward driving long-term growth with IB integration substantially complete
  • Accelerating expansion of luxury and super-premium portfolio across key markets
  • Leveraging IB's strong distribution network to introduce new products across premium price points
  • Preparing to expand House of TI premium portfolio

Other Developments

Portfolio Expansion

  • House of TI premium portfolio introduced in West Bengal
  • Now present across 8 markets

Associate Performance

  • Spaceman Spirits Lab (makers of Samsara Gin, associate company): 2.2x volume over Q1 FY26

Brand Portfolio

  • Core brands: Mansion House Brandy, Imperial Blue Whisky, Courrier Napoleon Brandy
  • Other brands: Madiraa Rum, Blue Lagoon Gin
  • Luxury vertical 'House of TI' includes: Monarch Legacy Edition (luxury brandy), Seven Islands Pure Malt Whisky (Indo-Scottish premium whisky)