Financial Performance Highlights

Q4 FY26 Performance:

  • Overall volumes increased by 135% YoY to cross 8 million cases
  • Imperial Blue contributed 4.6 million cases in Q4
  • Net revenue grew 148% YoY to ₹949 crore
  • Adjusted revenue (for subsidy) grew 154% YoY to ₹941 crore
  • EBITDA stood at ₹155 crore, growth of 97% YoY with margin of 16.3%
  • Adjusted EBITDA (for subsidy) grew 124% YoY to ₹146 crore with 15.5% margin
  • Net Selling Rate (NSR) increased by 5.4% to ₹1,177 per case from ₹1,116 per case in Q4 FY25
  • Exceptional expense of ₹63 crore predominantly on account of TSMA fees and impact of changes in labor code

FY26 Full Year Performance:

  • Overall volumes reached 20 million cases with only 4 months of Imperial Blue business
  • Mansion House Brandy crossed 10 million cases, becoming India's largest P&A brandy
  • Ex-Imperial Blue volumes increased 14% to 13.6 million cases
  • Revenue grew 70% versus FY25 to ₹2,346 crore
  • Adjusted revenue grew 69% to ₹2,279 crore
  • EBITDA grew 64% to ₹419 crore
  • Adjusted EBITDA grew 56% to ₹352 crore

Accounting Policy Change

Management changed revenue recognition presentation for selling expenses such as discounts, schemes, and incentives. Previously shown under Other Expenses, these are now shown as reduction from gross revenue. This change:

  • Negatively impacts reported revenue and gross margins
  • Positively impacts EBITDA margins and PAT margins
  • No impact on absolute EBITDA, PAT, or reported EPS

Imperial Blue Integration Update

  • 75% of Imperial Blue business has exited TSMA (Third Party Manufacturing Arrangement) as of Q4 FY26
  • Only 3 states remain under TSMA, expected to transition over next few quarters with outer date of March 2027
  • Faced small business disruptions in first couple of weeks of April after TSMA exit
  • Delivered record volumes in May for Imperial Blue under TI ownership
  • Workforce increased from 350 employees to 850 employees as of March 2026
  • Deferred consideration of EUR 28 million payable to Pernod Ricard after 4 years of acquisition

Capacity Expansion and Capex

  • Received government approval for expanded capacity at Prag, Andhra Pradesh
  • Capacity increased from 6 lakh cases per annum to 36 lakh cases per annum
  • Investment of ₹59 crore fully invested
  • Expected savings in bottling costs: ₹10 crore per annum
  • Maintenance capex guidance: approximately ₹25 crore each for FY27 and FY28

Debt Position

  • Gross debt: ₹2,295 crore as of March 31, 2026
  • Net debt: ₹1,911 crore as of March 31, 2026
  • Target: Reduce net debt-to-EBITDA below 1.0x by FY29
  • Expected net debt by March 2027: approximately ₹1,700 crore
  • Moratorium of 2 years on debt

Dividend Declaration

Board of Directors recommended dividend of ₹1 per share for FY25-26 to be approved at ensuing Annual General Meeting

Guidance and Outlook

Volume Guidance:

  • FY27: High-single digit to low-double digit volume growth for combined business
  • Next couple of years: Double-digit volume growth
  • Double-digit volume CAGR over next 3 years
  • Imperial Blue expected to grow slightly faster than erstwhile TI business

Margin Guidance:

  • Consolidated EBITDA margins expected to reach 16%-18% for combined business over next 24-36 months
  • Current base: 15.5% EBITDA margin in FY26
  • Guidance includes positive impact from accounting policy change
  • Upper end of guidance includes benefits from UK FTA and potential Telangana price hike

Working Capital:

  • Working capital cycle expected in range of 53 to 55 days of gross revenue

Strategic Initiatives

Four-Part Focus Strategy:

1. Generate and fulfil demand for brands to deliver double-digit volume growth

2. Optimize packaging, processes & supply chain to achieve 16-18% EBITDA margins

3. Focus on efficient capital deployment and disciplined debt management

4. Expand TI's luxury and premium portfolio using pan-India distribution strength

Premiumization Strategy:

  • Anchored by existing portfolio strength and robust NPD pipeline
  • Partnership with Spaceman Spirits Lab for luxury launches
  • Plans to launch brandy in northern markets in FY27
  • Luxury portfolio including Monarch brand

Market and Policy Updates

Karnataka Excise Policy:

  • Progressive change reduced consumer price of Imperial Blue Whiskey and Mansion House Brandy by ₹20 per nip
  • Expected further growth based on FY25 experience with price reductions
  • Previous price reduction from ₹257 to ₹235 per nip resulted in significant growth beyond high teens

Telangana Dues:

  • Stable since January 2026 in terms of number of days outstanding
  • No deterioration in situation
  • Actively working with government authorities to reduce outstanding days

Cost Optimization and Inflation Impact

  • Expect pressure on input costs and margins due to geopolitical scenario
  • Identified several areas of cost optimization to mitigate raw material price increases
  • Q1 FY27 may see short-term margin impact due to input cost inflation
  • Full year perspective expected to meet guidance

International Business

  • Nigeria subsidiary: Existing business of 2.5 lakh cases
  • Investment of up to ₹30 crore planned
  • Sustainable business in Nigeria

TSMA Fees Outlook

  • TSMA fees expected to decrease quarter-on-quarter
  • Full year impact: ₹55-60 crore for FY27
  • Only 5% of TSMA costs may show up in operating expenses post-transition

Additional Business Metrics

  • Imperial Blue seasonality: H2 forms around 52% of volumes
  • Ex-Maharashtra, Imperial Blue recorded growth of around 9% versus Q4 FY25
  • Market share: Close to 40% in Southern India in Q4 FY26
  • Selling costs as percentage of gross revenue: 6-6.5%

Management Participants

  • Amit Dahanukar: Chairman and Managing Director
  • Ameya Deshpande: Chief Strategy Officer
  • Rajesh Choudhary: Chief Financial Officer
  • Sanaya Dahanukar: General Manager, Growth and Innovation