Tilaknagar Industries Q2 FY27 Revenue Rises 173% to ₹1,035 Crore

Tilaknagar Industries Ltd reported net revenue of ₹1,035 crore in Q2 FY27, a 173% year-on-year increase, while consolidated net profit fell 57.7% to ₹22.26 crore after ₹10.94 crore of exceptional integration expenses related to Imperial Blue.

What did Tilaknagar Industries report for Q2 FY27?

TI said net revenue reached ₹1,035 crore in the July-September 2026 quarter, compared with ₹379.56 crore a year earlier. Revenue adjusted for subsidy was ₹1,033 crore, representing growth of 172% year-on-year. The sharp increase came during the period in which the company continued integrating the Imperial Blue business division acquired from Pernod Ricard India.

The company reported EBITDA of ₹148 crore, up 146% year-on-year, with an EBITDA margin of 14.3%. On a subsidy-adjusted basis, EBITDA was ₹146 crore and the margin was 14.1%. Gross profit, adjusted for subsidy, stood at ₹432 crore, translating into a gross margin of 41.8%.

TI's reported consolidated net profit was ₹22.26 crore, against ₹52.68 crore in the corresponding quarter of the previous year. The company recorded an exceptional loss of ₹10.94 crore for non-recurring expenses connected with the Imperial Blue integration. This exceptional item was cited as the main reason for the year-on-year decline in profit.

How did Imperial Blue and Mansion House perform during the quarter?

TI said its flagship Imperial Blue whisky recorded secondary volume growth of 8.5% quarter-on-quarter in Q2 FY27, while Mansion House brandy recorded 7.1% growth over Q1 FY27. The company also said Imperial Blue gained more than 100 basis points of pan-India market share during the quarter.

Imperial Blue's market share increased in 17 states, according to management. Karnataka, Andhra Pradesh, Uttarakhand, Assam and Rajasthan were identified as states with significant share gains. These metrics indicate the scale of distribution and market-positioning work undertaken after the business acquisition.

Management described TI as India's largest prestige-and-above brandy player and said it sees potential benefits from any reform in Tamil Nadu. The company noted that its Prestige & Above brandy volumes in Tamil Nadu had previously reached around 3 million cases at their peak, compared with less than 0.5 million cases currently.

What do the Q2 FY27 financial figures show?

TI's Q2 figures show strong reported revenue and EBITDA growth, alongside a lower gross margin sequentially and a profit decline caused by exceptional costs. Net sales realisation was ₹1,174 per case, marginally below ₹1,183 in Q1 FY27 but above ₹1,138 in Q2 FY26.

The gross margin of 41.8% was 30 basis points below the 42.1% reported in Q1 FY27. Management said the margin would have been closer to 44% without inflationary pressures. It also indicated that EBITDA margin could have been around 16.5% excluding the impact of inflation.

A separate PTI report put TI's revenue from operations at ₹2,437.55 crore for the September quarter, compared with ₹896.92 crore a year earlier. The provided materials also describe Q2 FY27 consolidated revenue as ₹1,035.30 crore. The disclosures use different revenue descriptions, and the supplied information does not specify a reconciliation between those figures.

Why do the results matter for TI investors?

The quarter provides a view of TI's operating performance while the Imperial Blue business is being integrated. Revenue and EBITDA expanded sharply from the prior-year quarter, while exceptional costs affected the reported profit figure. Investors can therefore distinguish between the operating metrics highlighted by management and the impact of non-recurring integration expenditure on net profit.

The company maintained its FY27 guidance for high single-digit to low double-digit volume growth for the combined business. Management's stated priorities are to strengthen market position, expand pan-India presence and accelerate premiumisation. The Q2 secondary-volume growth figures for Imperial Blue and Mansion House are relevant indicators of execution against those priorities.

Tamil Nadu remains an important policy-related area for the company because of TI's brandy exposure and its historical volumes in the state. Management did not provide a forecast for any policy change or its financial impact. Its comments were limited to the potential for TI to benefit if reform occurs in the market.

Conclusion

TI's Q2 FY27 update combines a substantial increase in reported net revenue and EBITDA with a decline in consolidated net profit caused by a disclosed ₹10.94 crore exceptional loss. Imperial Blue's market-share gains and quarter-on-quarter secondary-volume growth for both key brands were central operating developments during the quarter.

The next disclosed benchmark is execution against FY27 guidance for high single-digit to low double-digit combined-business volume growth. Investors will also watch the continuing Imperial Blue integration, margin effects from inflationary pressures and any confirmed developments concerning alcohol-market reform in Tamil Nadu.