Tilaknagar Industries: Imperial Blue Acquisition Fuels Strong Q3 FY26 Growth and Premiumisation Drive

Tilaknagar Industries Ltd. (TI), a prominent Indian-Made Foreign Liquor (IMFL) manufacturer, has reported a transformative Q3 FY26, marked by the successful acquisition and initial integration of Imperial Blue whisky. This strategic move has significantly bolstered the company's market position and set the stage for accelerated growth and premiumisation across India. The quarter's financial performance reflects the immediate impact of this acquisition, alongside robust growth in its existing portfolio.

For Q3 FY26, Tilaknagar Industries reported a net revenue of INR 664 crore, showcasing a remarkable 95.0% year-on-year growth. When adjusted for subsidy, the revenue stood at INR 644 crore, growing by 89.2%. The company's EBITDA for the quarter was INR 110 crore, an 82.3% increase year-on-year, with an EBITDA margin of 16.6%. Adjusted for subsidy, EBITDA was INR 90 crore, representing a 49.6% growth and a 14.0% margin. Profit After Tax (PAT), excluding exceptional items, reached INR 64 crore, growing by 18.7% year-on-year, with a PAT margin of 9.5%. For the nine months ended December 31, 2025, net revenue was INR 1,471 crore (43.1% YoY growth), EBITDA was INR 265 crore (50.0% YoY growth), and PAT (excl. exceptional items) was INR 205 crore (34.8% YoY growth).

Strategic Expansion and Market Leadership

The acquisition of Imperial Blue from Pernod Ricard on November 30, 2025, has been a game-changer for Tilaknagar. In its very first month under TI's ownership, Imperial Blue registered primary sales of 1.79 million cases across India. This strong debut has propelled Tilaknagar to become the largest Prestige & Above (P&A) player in the Southern region, commanding approximately 32% market share as of December 2025. The company's existing business (ex-Imperial Blue) also demonstrated healthy growth, with primary sales of 1.30 million cases in December 2025, contributing to an overall volume increase of 76.1% year-on-year for the quarter.

This acquisition is a cornerstone of Tilaknagar's strategy to evolve from a mass-prestige focused player to a scaled IMFL company with a significant presence across premium price points. The integration process is well underway, supported by dedicated workstreams and external experts, aiming for seamless transition and disciplined synergy realization. Management anticipates significant value creation through dual synergies: unlocking revenue growth via Imperial Blue's pan-India distribution network and optimizing operational costs through structural efficiencies. Cost savings are projected to result in a 225-350 bps margin expansion on the acquired business over the next 24 months.

Premiumisation and Innovation

Tilaknagar's commitment to premiumisation is evident in its recent product launches and strategic partnerships. The company launched its luxury whisky, Seven Islands Pure Malt Whisky, in Maharashtra in November 2025, followed by an introduction in Puducherry, with plans for further expansion in Q4 FY26. This brand, inspired by Mumbai's unique heritage, marks TI's confident entry into the premium whisky segment, aiming to build a credible luxury portfolio.

Furthermore, Tilaknagar has reinforced its commitment to the high-growth craft segment by increasing its stake in Spaceman Spirits Lab (SSL). Through this partnership and organic launches, the company aims to achieve a comprehensive footprint across luxury and super-premium categories. SSL has already expanded its domestic footprint with brands like Samsara Gin, Sitara Rum, and Amara Vodka across new markets and entered travel retail and international markets like Germany and Poland.

Financial Discipline and Future Outlook

Despite the significant investment in the Imperial Blue acquisition, Tilaknagar is focused on disciplined financial management. The company has secured INR 2,100 crore in debt from banks and NBFCs, structured with a two-year principal moratorium, and is committed to reducing its Net Debt/EBITDA ratio to below 1.0x by FY29 through strong operating cash flows and disciplined capital allocation. The expanded Prag bottling unit is also expected to be commissioned in Q4 FY26, further enhancing production capabilities.

Management expects Imperial Blue to register high-single digit volume growth in Q4 FY26. For FY27, the combined business is projected to achieve high-single to low-double digit volume growth, followed by sustained low-double digit growth in subsequent years. This strategic clarity, coupled with disciplined execution and a focus on premiumisation, positions Tilaknagar Industries for sustainable long-term growth and enhanced shareholder value. The company remains committed to becoming a truly pan-India, premium-focused alcobev player.