Q3 2026 Tilaknagar Industries Ltd Earnings Call
Speaker #3: Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference has been recorded.
Speaker #3: I now hand the conference over to Mr. Siddharth Rangnekar from CDR India. Thank you, and over to you, sir.
Siddharth Rangnekar: Thank you for joining us on Tilaknagar Industries Q3 FY26 Earnings Conference Call. We are joined today by Chairman and Managing Director, Mr. Amit Dahanukar, and Mr. Ameya Deshpande, and Mr. Rajesh Choudhary, Chief Financial Officer of the company. We shall commence with views from Mr. Amit Dahanukar on the closing of the Imperial Blue acquisition, performance, and financial highlights, followed by a brief commentary from Mr. Deshpande on the integration of Imperial Blue and the strategy going ahead. This shall be followed by an interactive question and answer session. Before we commence, I would like to state that certain comments made on today's call could be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation that is available on the stock exchange website, and which has been mailed to you.
Speaker #2: And thank you for joining us on Tilaknagar Industries Q3 FY26 earnings conference call. We are joined today by Chairman and Managing Director, Mr. Amit Dhanukar, Mr. Amay Deshpande, and Mr. Rajesh Chaudhary, Chief Financial Officer of the company.
Speaker #2: We shall commence with views from Mr. Amit Dhanukar on the closing of the Imperial Blue acquisition performance and financial highlights, followed by a brief commentary from Mr. Deshpande on the integration of Imperial Blue and the strategy going ahead.
Speaker #2: This shall be followed by an interactive question-and-answer session. Before we commence, I would like to state that certain comments made on today's call could be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation.
Speaker #2: That is available on the stock exchange website and which has been mailed to you. I would now like to request Mr. Dhanukar to make his opening remarks.
Siddharth Rangnekar: I would now like to request Mr. Dahanukar to make his opening remarks. Over to you.
Speaker #2: Over to you.
Amit Dahanukar: Good evening, everyone. Happy to have you all join us on this earnings call to discuss the Q3 FY26 results. This is also the first quarter where we will report on the performance of Imperial Blue business division. We completed the acquisition of Imperial Blue on 30 November 2025, and the current quarter's financials include Imperial Blue for the month of December 2025. I will provide an update on the current quarter's performance, which will be followed by Ameya taking you through the integration of Imperial Blue. 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 2025. This resulted in TI emerging as the largest prestige above IMFL player with a 32% market share.
Speaker #3: Good evening, everyone. Happy to have you all join us on this earnings call to discuss the Q3 FY26 results. This is also the first quarter where we will report on the performance of the Imperial Blue business division.
Speaker #3: We completed the acquisition of Imperial Blue on 30th November, and the current quarter's financials include Imperial Blue for the month of December 2025. I will provide an update on the current quarter's performance, which will be followed by Amaya taking you through the integration of Imperial Blue.
Speaker #3: 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.
Speaker #3: This resulted in TI emerging as the largest Prestige and Above IMFL player with a 32% market share. Specifically, on IB, TI delivered an impressive volume of 1.8 million cases in December across India.
Amit Dahanukar: Specifically, on IB, TI delivered an impressive volume of 1.8 million cases in December across India. On the back of this promising start, we are confident of restoring IB's leadership position and make it India's largest selling whiskey. During Q3, our overall volumes increased by 76.1% on a year-on-year basis, reaching 5.3 million cases. Excluding IB, our volumes increased by 16.8% to reach 3.5 million cases. For the nine months ended 31 December 2025, the volumes increased by 40.5% to reach 11.9 million cases, and excluding IB, the volumes increased by 19.5% to reach 10.1 million cases. I will now cover the financial performance for Q3 FY26 and nine months FY26.
Speaker #3: On the back of this promising start, we are confident of restoring IB's leadership position and making it India's largest-selling whiskey. During Q3, our overall volumes increased by 76.1% on a year-on-year basis, reaching 5.3 million cases.
Speaker #3: Excluding IB, our volumes increased by 16.8% to reach 3.5 million cases. For the nine months ended 31st December 2025, the volumes increased by 40.5% to reach 11.9 million cases, and excluding IB, the volumes increased by 19.5% to reach 10.1 million cases.
Speaker #3: I will now cover the financial performance for Q3 FY26 and the nine months of FY26. We have witnessed strong growth of 90.5% on a year-on-year basis to reach a net revenue of ₹664 crore.
Amit Dahanukar: We have witnessed a strong growth of 90.5% on year-on-year basis to reach a net revenue of INR 666 crores. Adjusted for subsidy, we recorded a growth of 89.2%. EBITDA stood at INR 110 crores for Q3, FY26, logging a growth of 82.3% and margin of 16.6%. Adjusted for subsidy, the EBITDA grew by 49.6% to reach INR 90 crores, a 14% margin on the combined business. For the nine months ended December 2025, our revenue grew at 43.1% to reach INR 1,471 crores. Adjusted for subsidy, we still clocked a growth of 39.5% to reach INR 1,413 crores.
Speaker #3: Adjusted for subsidy, we recorded a growth of 89.2%. EBITDA stood at ₹110 crore for Q3 FY26, clocking a growth of 82.3% and a margin of 16.6%.
Speaker #3: Adjusted for subsidy, the EBITDA grew by 49.6% to reach ₹90 crore, a 14% margin on the combined business. For the nine months ended December 25, our revenue grew by 43.1% to reach ₹1,471 crore.
Speaker #3: Adjusted for subsidy, we still clocked a growth of 39.5% to reach ₹1,413 crore. In the same period, EBITDA grew by 50% to reach ₹265 crore.
Amit Dahanukar: In the same period, EBITDA grew by 50% to reach INR 265 crore. Adjusted for subsidy, the EBITDA was INR 206 crore, a 28.5% increase vis-à-vis the preceding nine months. We have incurred an exceptional expense to the tune of INR 169 crore during Q3, FY2026, on account of transaction-related costs and TSMA fees. In terms of our portfolio-related updates, during this quarter, we launched our luxury whiskey, Seven Islands Pure Malt Whiskey, in the state of Maharashtra and certain export markets. This was soon followed by launch in Puducherry. Seven Islands is inspired by the city of Mumbai, which was earlier seven islands joined by the sea. It contains four malt spirits from Himalayas, Vindhyas, Speyside, and Lowlands, each adding a distinctive characteristics.
Speaker #3: Adjusted for subsidy, the EBITDA was ₹206 crores, a 28.5% increase vis-à-vis the preceding nine months. We have incurred an exceptional expense to the tune of ₹169 crores during Q3, FY26, on account of transaction-related costs and TSMA fees.
Speaker #3: In terms of our portfolio-related updates, during this quarter, we launched our luxury whiskey, Seven Islands Pure Malt Whiskey, in the state of Maharashtra and certain export markets.
Speaker #3: This will soon be followed by launch in Puducherry. Seven Islands is inspired by the city of Mumbai, which was earlier seven islands joined by the sea.
Speaker #3: It contains four malt spirits from the Himalayas, Vindhyas, Speyside, and Lowlands, each adding a distinctive characteristic. While we are reaching new heights with the acquisition of Imperial Blue and the launch of luxury products under House of TI, we continue to also focus on the brandy market with an aim to maintain category leadership.
Amit Dahanukar: While we are reaching new heights with the acquisition of Imperial Blue and launch of luxury products under House of TI, we continue to also focus on the brandy market with an aim to maintain category leadership. With a significant stronghold in two of the largest IMFL categories, we are now truly a pan-India and pan-category PNA-focused player. On the debt side, we have taken on debt to the tune of INR 2,100 crore from banks and NBFCs. The loan is subject to principal moratorium for the first 2 years of the 6-year tenure, followed by a ballooning repayment structure, with majority principal only due in the last year. During the year, we have received INR 2,093 crore as a part of the preferential issue. This includes proceeds received in the current quarter upon initiation of warrant conversion by all public investors.
Speaker #3: With a significant stronghold in two of the largest IMFL categories, we are now truly a pan-India and pan-category, P&A-focused player. On the debt side, we have taken on debt to the tune of ₹2,100 crore from banks and NBFCs.
Speaker #3: The loan is subject to principal moratorium for the first two years of the six-year tenure, followed by a ballooning repayment structure, with majority principal only due in the last year.
Speaker #3: During the year, we have received ₹2,093 crore as a part of the preferential issue. This includes proceeds received in the current quarter upon initiation of warrant conversion by all public investors.
Speaker #3: Warrants held by the promoter group will be converted during the upcoming fiscal year. On CAPEX related to our Prague bottling unit, we are expecting the expanded facility to be commissioned in the fourth quarter of the current fiscal.
Amit Dahanukar: Warrants held by the promoter group will be converted during the upcoming fiscal year. On CapEx related to our Prague bottling unit, we are expecting the expanded facility to be commissioned in Q4 of the current fiscal. I now hand over to Ameya to take you through the integration of Imperial Blue and provide guidance on the future performance.
Speaker #3: I now hand over to Amaya to take you through the integration of Imperial Blue and provide guidance on the future performance.
Speaker #2: Thank you. A very warm welcome to everyone joining us this evening. As mentioned by Mr. Dhanukar, we completed the acquisition of Imperial Blue on 30th November 2025.
Ameya Deshpande: Thank you. Very warm welcome to everyone joining us today evening. As mentioned by Mr. Dahanukar, we completed the acquisition of Imperial Blue on 30 November 2025. As disclosed to the exchanges, the consideration paid to Pernod Ricard was INR 3,442 crore, of which INR 182 crore was towards closing adjustments, primarily relating to inventory taken over by us, and prepaid expenses. There is another EUR 28 million to be paid to the seller after 4 years of closing, that is in fiscal year 2030. On the operations front, we are in the midst of an exercise to integrate the Imperial Blue business with our existing business. We have hired a big four consultant to assist us with operational integration, and a boutique HR consultant from a human capital and cultural integration perspective.
Speaker #2: As disclosed to the exchanges, the consideration paid to Pernod Ricard was Rs 3,442 crore, of which Rs 182 crore was towards closing adjustments, primarily relating to inventory taken over by us and prepaid expenses.
Speaker #2: There is another €28 million to be paid to the seller after four years of closing. That is in fiscal year 2030. On the operations front, we are in the midst of an exercise to integrate the Imperial Blue business with our existing business.
Speaker #2: We have hired a Big Four consultant to assist us with operational integration, and a boutique HR consultant from a human capital and cultural integration perspective.
Speaker #2: As mentioned earlier, we have taken TSMA support services from Pernod Ricard while the labels under the TI name are being registered. We are planning a phase-wise exit from TSMA, with the aim of getting significant operations under the TI belt by Q4, FY26.
Ameya Deshpande: As mentioned earlier, we have taken TSMA support services from Pernod Ricard, while the labels under TI name are being registered. We are planning a phase-wise exit from TSMA with the aim of getting significant operations under TI belt by Q4 FY26. With the increased scale of business, we have also carried out organizational restructuring at the top management level. With significant portion of talent acquisition completed, we now have a fully built team to deliver continued success. We are also entering into new bottling and vendor arrangements to ensure business continuity and minimal disruption during the changeover period.
Speaker #2: With the increased scale of business, we have also carried out organizational restructuring at the top management level. With a significant portion of talent acquisition completed, we now have a fully built team to deliver continued success.
Speaker #2: We are also entering into new bottling and vendor arrangements to ensure business continuity and minimal disruption during the changeover period. 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.
Ameya Deshpande: 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. With Imperial Blue under our belt, the distribution network now gives us access to 200 million+ cases opportunity in the Indian alcobev market. Our strategy to lead the premiumization trend is anchored by dual engine, the strength of our existing portfolio and a robust NPD pipeline. This leadership is further accelerated by a partnership with Spaceman Spirits Lab, which positions us to capture the market through targeted luxury launches. I would now like to take some time to provide some guidance on the combined business going forward. Even amidst integration exercise, we expect to register a high single-digit volume growth for IB in Q4 FY26.
Speaker #2: With Imperial Blue under our belt, the distribution network now gives us access to a 200-million-plus cases opportunity in the Indian Alcobev market. Our strategy to lead the premiumization trend is anchored by a dual engine.
Speaker #2: The strength of our existing portfolio and a robust NPD pipeline. This leadership is further accelerated by a partnership with Spaceman Spirits Lab, which positions us to capture the market through targeted luxury launches.
Speaker #2: I would now like to take some time to provide some guidance on the combined business going forward. Even amidst the integration exercise, we expect to register high single-digit volume growth for IB in Q4 FY26.
Speaker #2: Despite a strong start for IB under TI ownership, the brand will witness a low- to mid-single-digit volume degrowth in FY26 as compared to FY25, on account of tepid performance in the eight months preceding the acquisition.
Ameya Deshpande: Despite a strong start for TI, for IB under TI ownership, the brand will witness a low to mid-single digit volume degrowth in FY26 as compared to FY25, on account of tepid performance in the 8 months preceding the acquisition. For FY27, we expect a high single digit to low double-digit volume growth for the combined business, which will be followed by low double-digit volume growth over the next couple of years. In terms of margins, we expect the consolidated EBITDA margins to expand by 150 to 250 basis points for the combined business over the next 24 to 36 months. As highlighted earlier as well, we expect the net debt to EBITDA ratio going down below 1x by FY29. With that, I would now request the operator to open the call for Q&A.
Speaker #2: For FY27, we expect high single-digit to low double-digit volume growth for the combined business, which will be followed by low double-digit volume growth over the next couple of years.
Speaker #2: In terms of margins, we expect the consolidated EBITDA margins to expand by 150 to 250 basis points for the combined business over the next 24 to 36 months.
Speaker #2: As highlighted earlier as well, we expect the net debt to EBITDA ratio to go down below one time by FY29. With that, I would now request the operator to open the call for Q&A.
Speaker #3: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone.
Operator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, to ask a question, please press star and one. The first question is from the line of Venkatesh from Alpha Investors. Please go ahead. Venkatesh, please go ahead with your question. Your line is unmuted. Venkatesh, I'm really very sorry, but we are unable to hear you. Mr. Venkatesh, may we request you to please check your line and rejoin the queue? Ladies and gentlemen, to ask a question, please press star and one.
Speaker #3: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.
Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question, please press star and one. The first question is from the line of Venkatesh from Alpha Investors.
Speaker #3: Please go ahead. Venkatesh, please go ahead with a question; your line is unmuted. Venkatesh, I'm really, really sorry, but we are unable to hear you.
Speaker #3: Mr. Venkatesh, may we request you to please check your line and rejoin the queue? Ladies and gentlemen, to ask a question, please press star and one.
Speaker #3: The next question is from the line of Karan Kamdar from Choice Institutional Equities. Please go ahead.
Operator: The next question is from the line of Karan Kamdar from Choice Institutional Equities. Please go ahead.
Speaker #4: Hello, sir. I just wanted an update on Imperial Blue now that the transaction is complete. What sort of margins are we looking at ex-IB as well as including IB, and what are the prospects going ahead?
[Analyst] (Choice Institutional Equities): Hello, sir. I just wanted an update on Imperial Blue. Now that the transaction is complete, what sort of margins are we looking at, ex IB as well as including IB, and what are the prospects going ahead?
Speaker #2: Yeah, so Karan, as you would have seen, the presentation has just gone up—the earnings presentation, right? And in the presentation, we have mentioned the steady-state margin of Imperial Blue before acquisition, which is around 11.7%, right?
Ameya Deshpande: Yeah, so, Karan, as you would have seen, the presentation has just gone up, the earnings presentation, right? And in the presentation, we have mentioned the steady state margin of Imperial Blue before acquisition, which is around 11.7%. Right now, as per the guidance that I've just provided, we are looking at a 250 to 350 basis points increase over and above that level, over the next 24 months or so. When it comes to the entire... Sorry?
Speaker #2: Now, as per the guidance that I've just provided, we are looking at a 250 to 350 basis points increase over and above that level.
Speaker #2: Over the next 24 months or so. When it comes to the entire story?
Speaker #4: Yes. Yeah, sorry, go ahead. So 11% just for Imperial Blue, right?
[Analyst] (Choice Institutional Equities): Yes. Yes, sorry, go ahead. So 11% just for Imperial Blue, right?
Speaker #2: Yeah, 11.7% is Imperial Blue, which is expected to expand by 250 to 350 basis points over the next 24 months. And from a combined business perspective, including TI, which today till Q2 was doing 15-odd percent, if you look at the combined business, you're looking at 150 to 250 basis points.
Ameya Deshpande: Yeah. 11.7% is Imperial Blue, which is expected to expand by 250 to 350 basis points over the next 24 months. From a combined business perspective, including TI, which today till Q2 was doing 15 odd %, if you look at the combined business, you're looking at 150 to 250 basis points expansion. That's combined business.
Speaker #2: Expansion. That's combined business.
Speaker #4: Over 15%. Combined business.
[Analyst] (Choice Institutional Equities): Over 15%? Combined business.
Ameya Deshpande: Yeah. Yeah, we are, we are talking about 50, 150 to 250 basis points on the combined business. So if you just do a weighted average, right?
Speaker #2: Yeah, yeah, we are talking about 150 to 250 basis points on the combined business. So if you just do a weighted average, right, then on a steady state basis with 11.7% for IB, it would come to somewhere around 13%, 12.5% to 13%, right?
[Analyst] (Choice Institutional Equities): Right.
Ameya Deshpande: On steady state basis, with 11.7% for IB, it would come to somewhere around 13%, 12.5 to 13%, right? So assuming 13% as the combined business, we are guiding to a 150 to 250 basis points expansion over and above that, over the next two years.
Speaker #2: So, assuming 13% as the combined business, we are guiding to a 150 to 250 basis points expansion over and above that.
Speaker #4: Over the next two years. That's very nice to hear, sir. Sir, so additionally, what kind of synergy do we expect with this acquisition? And do we sort of expect Spaceman Spirit Labs and Go to become a more national brand?
[Analyst] (Choice Institutional Equities): That's, that's very nice to hear, sir. Sir, so, additionally, what kind of synergies do we expect with this acquisition? And, do we sort of expect Spaceman Spirits Lab to also use these synergies and go, become a more national brand, or are we thinking of launching more whiskey products?
Speaker #4: Or are we thinking of launching more whiskey products?
Speaker #2: So, with the Spaceman investment, we are already currently distributing the Spaceman brands—namely, Samsara Gin and Sitara Rum—in various markets. Of course, post-acquisition of Imperial Blue now, access to markets has increased significantly, and we will now leverage this distribution network not only for the Spaceman products, but our existing product portfolio as well.
Ameya Deshpande: So with the Spaceman investment, we are already currently, you know, distributing the Spaceman brands, namely Samsāra Gin and SĪTÄRĀ Rum in various markets. Of course, post-acquisition of Imperial Blue, now our access to markets has increased significantly, and we will now leverage on this distribution network, not only for the Spaceman products, but our existing product portfolio as well.
Speaker #4: Okay, so any plans to launch more whiskey brands, or is that out of the question for now?
[Analyst] (Choice Institutional Equities): Okay. So any plans to launch more whiskey brands, or is that out of the question for now?
Speaker #2: No, organically, we will launch certain whiskey brands in segments which we see as promising, over the next couple of quarters. So, currently, when we mentioned that we are looking at a 200 million-plus cases opportunity, right, we are obviously looking at other segments, price points, profitable price points to enter into.
Ameya Deshpande: No, organically, we will launch certain whiskey brands in segments which we see as promising over the next couple of quarters.
[Analyst] (Choice Institutional Equities): So currently-
Ameya Deshpande: When, when we mentioned that we are looking at a 200 million plus cases opportunity, right?
[Analyst] (Choice Institutional Equities): Yeah.
Ameya Deshpande: We are obviously looking at other segments, price points, profitable price points to enter into.
Speaker #4: Got it, got it. And last question, sir—if you can give me a sense on any stress that you see in any micro-markets or any states that you are worried about right now, any risks you see to this expansion?
[Analyst] (Choice Institutional Equities): Got it. Got it. And, last question, sir, if you can give me a sense on any stress that you see in any micro markets or any states that you are worried about right now, any risk you see to this expansion?
Speaker #2: No, at this point, we are not seeing any stress in any particular markets. Of course, our current focus is fully on operational integration at the current moment, and as we had mentioned earlier also, we feel that it has been a slightly underinvested brand for the last four to five years.
Ameya Deshpande: No, at this point, you know, we are not seeing any stress in any particular markets. Of course, our current focus is fully on operational integration at the current moment, and, as we had mentioned earlier also, we feel that it is it's been a slightly underinvested brand for the last 4 to 5 years, so we will look at revamping our investments in A&SP across markets.
Speaker #2: So, we will look at revamping our investments in ANSP across markets.
Speaker #4: Okay, sir. Thank you. I'll get back in the queue.
[Analyst] (Choice Institutional Equities): Okay, sir. Thank you. I'll get back in the queue.
Speaker #5: Thank you. Ladies and gentlemen, to ask a question, please press star and one. The next question is from the line of Venkatesh from Alpha Investors.
Operator: Thank you. Ladies and gentlemen, to ask a question, please press star and one. The next question is from the line of Venkatesh, from Alpha Investors. Please go ahead.
Speaker #5: Please go ahead.
[Analyst] (Alpha Investors): Good evening, sir. My question is regarding the NSR for IB business and for Tilaknagar Industries. Hello? Am I audible?
Speaker #4: Good evening, sir. My question is regarding the NSR for IB Business and for Tilaknagar Industries. Hello? Am I audible?
Ameya Deshpande: So, so basically, the combined business NSR is INR 1,242 per case, right? This is, the IB NSR is INR 1,306 per case.
Speaker #2: So basically, the combined business NSR is 1 to 42 per case, right? This is—the IB NSR is 1,306 per case.
Speaker #4: IB is 1,300. Okay.
[Analyst] (Alpha Investors): IB is 1,300, okay.
Speaker #2: Yeah. And even ex-IB NSR, right, has expanded from ₹1,161 per case in Q3 of FY25 to ₹1,209 in this quarter.
Ameya Deshpande: Yeah, and even ex-IB NSR, right, has expanded from 1,161 per case in Q3 of FY25 to 1,209 in this quarter.
Speaker #4: Okay. And another question is regarding the quality of the IB brand. Compared to the past, like three or four years back, the quality was very nice.
[Analyst] (Alpha Investors): Okay, and another question is regarding the quality of the IB brand. Like, comparatively to past, like three, four years back, the quality was very nice. Right now, the quality of the IB alcohol is like, it's not that good compared to the other brands of Allied Blenders or any other, like, comparison.
Speaker #4: Right now, the quality of the IB alcohol is, like, it's not that good compared to the other brands of Allied Branders or any other comparisons.
Speaker #2: So we cannot comment specifically on these observations. I think all I would say is that the IB brand has a 30-year legacy, and it's the third-largest selling whiskey in India at the current moment.
Ameya Deshpande: So we cannot comment specifically on these observations. I think all I would say is that the IB brand has a 30-year legacy and is the third largest selling whiskey in India at the current moment. So I think that's an enough testimony that the quality is well appreciated and acknowledged by millions of consumers across India and globally as well.
Speaker #2: So I think that's enough testimony that the quality is well appreciated and acknowledged by millions of consumers across India and globally as well.
Speaker #4: Okay. And what will be the growth rate for the IB brand for this year and next year?
[Analyst] (Alpha Investors): Okay. And what will be the growth rate for the IB brand for this year and next year?
Speaker #2: So, we are guiding towards a combined business, right? As mentioned in my opening commentary, for FY27 we are looking at a high single-digit to low double-digit kind of volume growth.
Ameya Deshpande: So we are guiding towards a combined business, right? So we are, as mentioned in my opening commentary, for FY 2027, we are looking at a high single-digit to low double-digit kind of volume growth, and there onwards, you're looking at low double-digit volume growth. The revenue growth would be approximately 150 to 200 basis points over and above the volume growth.
Speaker #2: And there onwards, you're looking at low double-digit volume growth. The revenue growth would be approximately 150 to 200 basis points over and above the volume growth.
Speaker #4: Okay. That's on my side. Thank you.
[Analyst] (Alpha Investors): Okay, that's all, sir. Thank you.
Speaker #5: Thank you. The next question is from the line of Heer Goghri from Choice Equities. Please go ahead.
Operator: Thank you. The next question is from the line of Heer Gogri from Choice Equities. Please go ahead.
[Analyst] (Choice Institutional Equities): Hello, thank you for the opportunity. I wanted to know about, you mentioned, about Prag Distillery to be on track, fully operational by Q4 2026. Is that so? And, are we expecting the fully operational 3.6 million cases to start from this quarter or the-
Speaker #6: Hello. Thank you for the opportunity. I wanted to know about—you mentioned about Prague Distillery. To be on track, fully operational by this quarter of 2026?
Speaker #6: Is that so? And are we expecting the fully operational 3.6 million cases to start from this quarter, or rather, the first quarter of '27?
Ameya Deshpande: Yes.
[Analyst] (Choice Institutional Equities): —or rather Q1 2027?
Speaker #2: Yeah, that would be that would be right. We will commission the project by the end of this quarter of the of Q4. Right? And whilst in the first quarter, we may not look at 100% utilization right away, right?
Ameya Deshpande: Yeah, that would be right. We will commission the project by the end of this quarter, Q4, right? While in the first quarter, we may not look at 100% utilization right away, right? But over the course of the year, safe to assume that we will have almost full utilization of the plant.
Speaker #2: But over the course of the year, it's safe to assume that we will have almost full utilization of the plant.
Speaker #6: Okay, got it. Are there any license fees pending, or our KPIX, pending to be paid for this distillery?
[Analyst] (Choice Institutional Equities): Okay, got it. And, any license fees pending, or CapEx pending to be paid for this distillery?
Speaker #2: Yeah, so there is a certain amount around high single-digit to low double-digit kind of, in crores, right? Around 10-odd crores of investments still to be done.
Ameya Deshpande: Yeah. So there is certain around high single digit to low double digit kind of in crores, right? Around INR 10 odd crores of investment still to be done. The license fees have been fully paid.
Speaker #4: The license fees have been fully paid.
[Analyst] (Choice Institutional Equities): Okay, got it. Also wanted to know about your views on the industry-wide with Telangana dues faced by the industry. So, your views on that, and how is Tilaknagar facing the same, and what is your outlook on the same?
Speaker #6: Okay, got it. I also wanted to know your views on the industry-wide deals in Telangana and the challenges faced by the industry. So, your views on that, and how is Tilaknagar facing the same? What is your outlook on this?
Speaker #2: So, we are on par with the industry, of course. It has been a matter of concern in terms of the increased receivables which we are having from the government.
Ameya Deshpande: So we are on par with the industry. Of course, it has been a matter of concern in terms of the increased receivables, which we are having from the government. But as a company and as part of larger industry associations, we are actively in touch with the government authorities to expeditiously clear this overdue.
Speaker #2: But as a company, and as part of larger industry associations, we are actively in touch with the government authorities to expeditiously clear this overdue.
Speaker #6: Okay, got it. And one last question: you mentioned you are looking to revamp the IB business and invest in ANP. So, any guidance for what percent of the revenue you are looking at for ANP?
[Analyst] (Choice Institutional Equities): Okay, got it. And one last question. You mentioned you are looking at to revamp the IB business and invest in A&P. So any guidance for what percent of the revenue are you looking at for A&P?
Speaker #2: So there is an increase in ANP that we will be doing, but we are not guiding towards what that will be. But when we provide a guidance, a wider guidance of 250 to 350 basis points increase, that is taking into consideration the increased ANP reinvestment rate.
Ameya Deshpande: So, Heer, there is an increase in ANP that we will be doing, but we are not guiding towards what that will be. But when we provide a guidance, a wider guidance of 250 to 350 basis points increase, that is taking into consideration the increased ANP reinvestment rate.
Speaker #6: Okay. Okay. Got it. Thank you so much. That answers the question.
Vikrant Joshi: Okay, okay, got it. Thank you very much. That answers my question.
Speaker #5: Thank you. Participants, if you would like to ask a question, please press star and one. Ladies and gentlemen, to ask a question, please press star and one. The next question is from the line of Ajay Thakur from Anand Rathi Securities.
Operator: Thank you. Participants, to ask a question, please press star and one. Ladies and gentlemen, to ask a question, please press star and one. The next question is from the line of Ajay Thakur from Anand Rathi Securities. Please go ahead.
Speaker #5: Please go ahead.
Ajay Thakur: Hello, thanks for taking my question. I want to understand a bit more on the Maharashtra because, in terms of, you know, the brands which have already come through, what kind of impact are we seeing because of the MML brands? Have we seen some kind of, you know, a faster growth for those brand versus the MFL segment, and what kind of impact is that having in terms of both the demand and in terms of the margins on our brands? Yeah.
Speaker #7: Hello. Thanks for taking my question. I want to understand a bit more on the Mahasram 8 liquor. In terms of the brands which have already come through, what kind of impact are we seeing because of the MML brands?
Speaker #7: Have we seen some kind of faster growth for those brands versus the MFL segment? And what kind of impact is that having in terms of both the demand and in terms of the margins on our brands?
Speaker #7: Yeah.
Speaker #2: So, MML has been introduced in Maharashtra in August. And, of course, that segment is currently evolving. But it has certainly had an impact in the relevant category for Imperial Blue, which is a prestige category.
Ameya Deshpande: So MML has been introduced in Maharashtra in August, and of course, that segment is currently evolving, but it has certainly had an impact in the relevant category for Imperial Blue, which is a prestige category, where we have seen the segment as a whole has de-grown by 25 odd %. But I think as of now, currently, Imperial Blue is maintaining its market share in that relevant segment. But of course, there's been a volume decline in view of this new category of MML, which has been introduced. I must also add that the introduction of MML has been, or rather, is being contested by certain industry associations, as I am given to understand, and the matter is sub judice.
Speaker #2: Where we have seen the segment as a whole has degrown by 25-odd percent. But I think as of now, currently, Imperial Blue is maintaining its market share in that relevant segment.
Speaker #2: But of course, there's been a volume decline in view of this new category of MML which has been introduced. I must also add that the introduction of MML is being contested by certain industry associations, as I am given to understand.
Speaker #2: And the matter is subdued as.
Speaker #7: Understood. Understood. Sir, just want to get a bit more color. Are we still seeing that MML is kind of ramping it up? And has it kind of stabilized now?
Ajay Thakur: Understood. Understood. Sir, just to get a bit more color, are we still seeing that MML is kind of ramping it up? And has it kind of, you know, stabilized now, or is it still, you know, kind of ramping it, or ramping in terms of the numbers?
Speaker #7: Or is it still kind of ramping, in terms of the numbers?
Speaker #2: So Ajay, our understanding is that MML is growing anywhere between 500,000 to 600,000 cases per month. Right now, we're not really sure whether this is the peak or if there is still growth to come, right?
Ameya Deshpande: So, Ajay, our understanding is that MML is growing anywhere between 5 to 6 lakh cases per month. Right now, not really sure whether this is the peak or there is still growth to come, right? It's still pretty evolving in terms of nascency, in terms of the segment. Having said that, we'll just wait and watch and, and frankly, take it as it comes.
Speaker #2: It's still pretty evolving in terms of nascency, in terms of the segment. Having said that, we'll just wait and watch. And frankly, take it as it comes.
Speaker #7: Understood. Okay. Quite helpful. Thank you.
Ajay Thakur: Understood. Okay, very helpful. Thank you.
Speaker #5: Thank you. Participants, to ask a question, please press star and one. The next question is from the line of Vikram Joshi, an individual investor.
Operator: Thank you. Participants, to ask a question, please press star and one. The next question is from the line of Vikrant Joshi, an individual investor. Please go ahead.
Speaker #5: Please go ahead.
Speaker #7: Hello, good evening, sir. I'm joining for the first time. I'm a very long-term investor in Tilaknagar Industries. I started with a small investment and now have invested a good amount in Tilaknagar.
Vikrant Joshi: Hello, good evening, sir. I'm joining this first time. I'm a very long-term investor in Tilaknagar Industries. I started from small investment, and now, like, invested a good amount of good amount in Tilaknagar. Sir, I would like, I'm little bit unhappy with this talk, because, see, you have done a very great job, like acquiring Imperial Blue. And then the opportunity got created for, let's say, by the preferential shareholders and then the warrants. But retail investor didn't get a chance, let's say, to right, rights issue or something like that. So, that was one thing. Second thing is, if you see the volatility in the stock price, even this quarter, like, the revenue has been increased, like, a huge jump.
Speaker #7: Sir, I am a little bit unhappy with this stock because, see, you had done a very great job acquiring Imperial Blue. And then the opportunity got created for, let's say, by the preferential shareholders and then the warrants.
Speaker #7: But retail investors didn't get a chance, let's say, to write an issue or something like that. So that was one thing. Second thing is, if you see the volatility in the stock price, sir, even this quarter, the revenue has increased—a huge jump.
Speaker #7: But then, if you see profit margin, that one-time adjustment, the profit is in negative, sir. So how can that be improved, sir? Because the stock price is directly proportionate with the profits, right?
Vikrant Joshi: But then if you see the profit margin, that one-time adjustment, the profit is in negative, sir. So how can that be improved, sir? Because the stock price is directly proportionate with the profits, right? So as a retail investor, I'm not getting dividends, and now because of these negative profits, so I'm not sure, like, how that stock will respond to that, sir. How that can improve profitability? That is my question, sir.
Speaker #7: So as a retail investor, I'm not getting dividends, and now because of these negative profits, I'm not sure how that stock will now respond to that.
Speaker #7: So, that can be improved—profitability. That is my question, sir.
Ameya Deshpande: So, Vikrant, I think I will not comment upon the performance from a stock market perspective, right? What we can speak about is the operational and business performance. And from that perspective, I think the very reason that most of these transitional costs are a part of the exceptional items is to provide that color to the investors and shareholders on the actual operating performance of the company, right? And I think that is the way you should look at it. The business has done well. Within the first month of Imperial Blue coming in, right, I think we have done a reasonable job despite all the challenges of integration. Achieving 1.8 million cases is by no means a small task, right?
Speaker #2: So Vikram, I think I will not comment upon the performance from a stock market perspective, right? What we can speak about is the operational and business performance.
Speaker #2: And from that perspective, I think the very reason that most of these transitional costs are a part of the exceptional items is to provide that color to the investors and shareholders on the actual operating performance of the company.
Speaker #2: Right? The way—and I think that is the way you should look at it. The business has done well within the first month of Imperial Blue coming in, right?
Speaker #2: I think we have done a reasonable job despite all the challenges of integration. Achieving 1.8 million cases is by no means a small task, right?
Speaker #2: So obviously, again, I'm not going to talk about the stock market performance over here. But business, depending on what we are looking at right now, we do see that the margins are going to expand.
Ameya Deshpande: So obviously, again, I'm not going to talk about the stock market performance over here, but business, depending on what we are looking at right now, we do see that, the margins are going to expand. I've guided towards that as well, right? And hopefully, that will show through in the numbers as well, going forward.
Speaker #2: I've guided towards that as well, right? And hopefully, that will show through in the numbers as well going forward.
Speaker #7: Right. Right. The only request is, how can we put more focus on improving the profit margins? Because even if you, let's say, exclude that item—₹169 crore—the profits, if you compare to the last quarter, I feel, and even the results are uploaded, let's say, one minute before this call, right?
Vikrant Joshi: Right, sir. The only request is, like, how, how, like, can we put more focus on improving the profit margins? Because even if you, let's say, exclude that item, INR 169 crore... The profits are, if you compare to last quarter, I feel even the results are uploaded, let's say, one minute before this call, right? I'm not really sure, like, how you see. I mean, including, like, individual investor, our confidence also matter, right, in the company performance, right? So that is a require... I don't see any individual investor joining the call, but I'm really, really long-term investor, and I'm really concerned about the profit, profit margin.
Speaker #7: I'm not really sure how we have seen, having equity—individual investor confidence also matters, right? In the company performance, right? So, that is a request.
Speaker #7: I don't see any individual investor joining the calls. But I'm really, really a long-term investor, and I'm really concerned about the profit margin.
Amit Dahanukar: No, we appreciate your support as a long-term investor, and if you have been a long-term investor, you would have seen that over the 5, 6 years, the company would have delivered a very good return for, you know, shareholders who have stayed invested with the company for, you know, a horizon of, say, 5 to 7 years. And we also believe that, you know, to remain invested for another 3 to 5 years, we could see similar returns going forward. The company and its management is committed in delivering value for the stakeholders.
Speaker #2: So, we appreciate your support as a long-term investor. And if you have been a long-term investor, you would have seen that over the last five, six years, the company would have delivered a very good return for shareholders who have stayed invested with the company for a horizon of, say, five to seven years.
Speaker #2: And we also believe that, by remaining invested for another three to five years, we could see similar returns going forward. The company and its management are committed to delivering value for the stakeholders.
Speaker #2: And all the decisions which we have taken in terms of the inorganic acquisition through Imperial Blue are raising more than ₹2,000 crores through a preferential allotment.
Amit Dahanukar: All the decisions which we have taken in terms of the inorganic acquisition through Imperial Blue, are raising more than INR 2,000 crore through a preferential allotment, you know, judiciously managing the balance sheet while going through this acquisition, I think that is all keeping in mind the long-term interest of all our stakeholders.
Speaker #2: Judiciously managing the balance sheet while going through this acquisition, I think that is all, keeping in mind the long-term interests of all our stakeholders.
Speaker #7: Right. Right. Just the one request was, how can we create opportunity for the retail investor as well? If you could have, let's say, done the rights issue as well.
Vikrant Joshi: Right. Just the only request was, like, how can we create opportunity for indeed, like, the retail investor as well? Like, if you could have, let's say, raised, like, done the rights issue as well, that, that - because other companies, if you see, like, a lot of companies going through the rights issue, right? So that benefits the retail. So maybe in future, I know, like, and I appreciate your, the vision and effort that you have put in, because it, the acquiring of Behemoth was not easy, and you have done a great job.
Speaker #7: That’s because other companies—if you see, a lot of companies are going through the rights issue, right? So that benefits the retail. So maybe in the future… I know and I appreciate your vision and the efforts that you have put in, because the acquiring of Behemoth was not easy.
Speaker #7: And you have done a great job. Yeah. Thank you. Thank you. That's it from us.
Amit Dahanukar: Absolutely.
Vikrant Joshi: Yeah. Thank you. Thank you. That's it, Thomas.
Speaker #2: So just to complete my narrative, I think during the fundraise, the Board contemplated various fundraising measures, and in its wisdom, it decided to go ahead with a preferential allotment.
Amit Dahanukar: So just to, you know, complete my narrative, I think, during the fundraise, the board contemplated various fundraising measures, and, in its wisdom, it decided to go ahead with a preferential allotment, which was duly approved by board and then by shareholders as well.
Speaker #2: Which was duly approved by the Board, and then by shareholders as well.
Speaker #5: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Operator: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Speaker #2: Thank you, everyone, for your continued trust and participation. Q3 FY26 marks a defining milestone in Tilaknagar Industries' journey, with the successful acquisition and initial integration of Imperial Blue significantly enhancing our scale, reach, and category presence.
Amit Dahanukar: Thank you, everyone, for your continued trust and participation. Q3 FY26 marks a defining milestone in Tilaknagar Industries' journey with the successful acquisition and initial integration of Imperial Blue, significantly enhancing our scale, reach, and category presence. While the integration phase will remain a key focus over the coming quarters, we are confident that the combined strength of our portfolio, expanded distribution network, and disciplined financial approach will enable us to drive sustainable growth, improve margins, and steadily deleverage the balance sheet. We remain committed to building a truly pan-India, premium-focused alcobev company. Thank you once again for your time and continued support today. We look forward to staying closely engaged with you in the coming quarters.
Speaker #2: While the integration phase will remain a key focus over the coming quarters, we are confident that the combined strength of our portfolio, expanded distribution network, and disciplined financial approach will enable us to drive sustainable growth, improve margins, and steadily deleverage the balance sheet.
Speaker #2: We remain committed to building a truly pan-India, premium-focused alcobev company. Thank you once again for your time and continued support today. We look forward to staying closely engaged with you in the coming quarters.
Operator: Thank you. On behalf of Tilaknagar Industries, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.