Tilaknagar Industries Ltd (NSE: TI) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Amit Dahanukar — Chairman and Managing Director
Ameya Deshpande — President – Strategy and Corporate Development
Analysts:
Unidentified Participant
Shizad Raghnekar — Analyst
Abdish Roy — Analyst
Natic — Analyst
Sir Pradeshi — Analyst
Suvan Mittal — Analyst
Rishabh — Analyst
Anjali Bajaj — Analyst
Aditya Singh — Analyst
Arpit Shah — Analyst
Amit Vora — Analyst
Presentation:
operator
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operator
Ladies and gentlemen, good day and welcome to Tilak Nagar Industries conference call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shizad Raghnekar from CDR India. Thank you. And over to you sir.
Shizad Raghnekar — Analyst
Thank you. Good morning everyone and thank you for joining us on tail of Nagar Industry Limited’s Quarter 1 FY26 earnings conference call. We are joined today by Chairman and Managing Director Mr. Amit Dhanupar, President Strategy and Corporate Development Amaya Deshpande and Chief Financial Officer of the company Mr. Abenak Gupta. We shall commence with views from Mr. Jahanutar on the strategic performance and financial highlights followed by the brief commentary from Mr. Deshpande on the acquisition of Imperial Blue Business Division which shall be followed by an interactive question and answer session. Before we commence, I would like to state that some of the statements 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 was shared with you earlier and which is also available on the stock exchange website.
I would now like to invite Mr. Dhanokar to make his opening remarks over to you.
Amit Dahanukar — Chairman and Managing Director
Good morning everyone. Happy to have you all join us on this earnings call to discuss the Quarter 1 FY26 results. I will first provide a brief update on the current quarter’s performance which will be followed by Ameya taking you through the recently announced acquisition of Imperial Blue after a challenging yet rewarding year. I’m pleased to share that we’ve sustained a strong industry breaching growth trajectory supported by consistent and progressive changes in excise policies in some of our key states. During quarter one our volume performance was strong with growth at 26.5% year on year our NSR increased from INR 1182 per case in quarter four FY25 to INR 1193 per K this quarter.
The Southern region has seen strong growth momentum in quarter one with market share improvement for TI in each of the key markets. We continue to be the third largest IMFL P and a player in Telangana and Karnataka, both states where whiskey contributes more than 80% of IMFL consumption. Karnataka continues to see strong growth momentum in the P and a segment for the entire industry on the back of excise duty reduction during the middle of previous fiscal on the portfolio front, our luxury and Super Premium portfolio is showing promising signs. Monarch Legacy Edition Brandy, our first luxury fray, is now available in Maharashtra, Goa and Puducherry.
Quarter one has also seen the commencement of our distribution of Samsara brands on the back of our usership agreement with Spaceman Spirits Lab, our investee company. Spaceman’s Premium portfolio featuring Samsara Gin, Sitara Rum and Amara Vodka is well positioned to be a key growth driver with our Super Premium segment. As part of our strategy, we will leverage our extensive and efficient distribution network to scale the reach of Spaceman brands across select Indian states and international markets, unlocking significant value over the coming quarters. In terms of our strategic investment into Spaceman, you would have also seen the disclosure last week wherein we have announced our investment of more than INR 10 crores in Spaceman, taking our shareholding to 21.36% from 12.98%.
This investment was a part of the previously announced investment round in September 2024 along with an additional secondary acquisition which we have made from some of the early shareholders. Our agreement with Spaceman gives us the option to further invest or acquire additional stake from shareholders at a predetermined valuation subject to Spaceman attaining pre agreed milestones. Our Mass Prestige portfolio, led by Mansion House and Courier Napoleon continues to deliver strong performance. We remain committed to ensuring that Brandy’s share of voice reflects its leadership and market share. As mentioned previously, we are stepping up our ANSP investments which are already beginning to shift consumer perception positively.
In line with this strategy, we have recently collaborated with one of South India’s biggest superstars for Manchanal’s packaged drinking water, showcasing its scale, strength and sincerity. With continued focus on marketing and innovation, we are confident in positioning Brandy as a more aspirational and inclusive category. While Brandy continues to be our dominant category in the current portfolio, we have also made an entry into semi premium Whiskey segment in the recent past with the relaunch of Mansion House Whiskey in a newer part. In addition to initially launching Manchino’s Whiskey in some northeastern states, we are now available in Telangana and some East India states like Odisha and West Bengal.
On the legal front, we. With respect to the trademark litigation, it gives me great pleasure to reiterate that the Honorable Bombay High Court has upheld TI’s ownership of mansion House and Savoy Club trademarks ensuring continued uninterrupted and exclusive sale under these brands. Before I hand over to Ameya to take you all through the Imperial View acquisition, I will briefly talk about our financial performance. We saw a strong 31% year on year growth in net revenues. Adjusted for the subsidiary income of INR 38.6 crores, the growth was still robust at 20.5% EBITDA in quarter one stood at INR 94 crores.
Adjusted for subsidy income this stood at INR 56 crores a year on year growth of 25% EBITDA margin stood at 15.1% an expansion of 55 basis points compared to last year despite higher than usual legal costs on account of the trademark litigation which was at its peak during this period. On the input side, ENA and Glass prices have remained stable and we are hopeful of a continued conducive input cost environment. Our focus drive on cash flow management continues and we now stand at a net cash level of rupees 163 crores showcasing our balance sheet strength.
I would also like to provide an update on the recent announcement we have made regarding our wholly owned subsidiary Prague Distillery. While we recently received extension of the validity of the letter of intent for expansion of our bottling capacity from the Government of Andhra Pradesh, we have now received approval from our Board of Directors to go ahead with the expansion for an investment of around INR 59 crores. This investment includes the INR 34 crores on account of the license fees and interest to be paid to the Government. Post this expansion, draft capacities would have increased to around 36 lakh cases per annum and increased from around 6 lakh cases per annum as of date.
I will now hand over to Ameya to take you through some of the salient points around our recently announced acquisition of Imperial Group.
Ameya Deshpande — President – Strategy and Corporate Development
Thank you and a very warm welcome to everyone joining us today. As you will be aware, we have on 23rd July 2025 executed definitive agreements with Pernod Ricard India to acquire the Imperial Blue Business Division on a slum sale basis for a lump sum consideration basis enterprise value of approximately 413 million euros. This amount includes a normalized working capital of approximately 70 million euros and a deferred consideration 28 million euros payable at the end of four years.
That is in FY 2013, the consideration payable to Perno would be subject to certain closing adjustments and the deal is subject to regulatory approvals. IB is the third largest whiskey brand in India by volume with 25 plus years of brand heritage. It sold more than 22 million cases across 27 states and Union territories. Along with a strong international footprint, the acquisition of IB is a significant strategic step for Tilaknagar Industries as it will not only broaden the product and geographical footprint but also serve as a launchpad for TI’s premium portfolio foray. On the financials front, IB clocked a net revenue in excess of INR 3000 crores for the trailing twelve months ending March 2025.
We foresee a good number of operational synergies to play out post the acquisition which will enable us to increase EBITDA margins in the IV business division as well as at a combined level. As a part of the transaction, TI will be getting 16 manufacturing units of which two units will be owned. Further, TI will enter into a TSMA with PONO whereby the seller has agreed to help in smooth transitioning of the business. Post closing, we will also be entering into a long term supply agreement with Shiva’s Brothers for the concentrated alcoholic beverage and essential raw material for manufacturing the IV products.
In terms of financing the acquisition, we are looking at an optimal mix of equity and debt. We have already announced the board approval for a preferential issue of almost 2,300 crore. The balance will be funded through debt and further expect to reduce debt over time such that the net debt to EBITDA falls below one time by FY29. Since the deal has not yet closed and remains subject to confidentiality obligations, we are unable to share additional details currently and hence we kindly request that participants refrain from asking any further questions related to this matter. With that, I would now request the operator to open the call for Q and A.
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone 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 symbol. Participants, you may press star N1 to ask the question. First question is from line of Abdish Roy from Nuamavel. Please go ahead. Avnish. May I request to unmute your line and proceed with your question?
Abdish Roy — Analyst
Yeah, sorry. Sorry. Yeah. Firstly, congrats on very good growth. I wanted to understand on the demand side you have done quite well. Highest ever Q1 volumes in the last nine, 10 years. But when we see lot of other discretionary segments there is a challenge and now we have seen job addition in the IT sector going slow. TCS for example 12,000 job losses have happened and across the IT sector there is a challenge and IT and South India clearly is the hub of IT sector jobs. So from an outlook perspective would you be slightly concerned on your current business and the market share gains if you could talk about it, what has really led to this kind of performance? So near term I think you will continue to do well.
So if you could talk about what are the key drivers for the market share gains. Thanks.
Amit Dahanukar — Chairman and Managing Director
So Avnish, I think we are not seeing any let up in demand. I think as you would have seen from the quarter one volume numbers growth in excess of 20% so quite robust uptake over there and we are not seeing any visible slowdown in any of the southern states as of now. And I’d like Ameya to address in terms of market share gains, perhaps he will add more insight state wise. So Sir Avnish, in terms of market share gains we’ve seen significant market share gains across all these states, right. Whether it is a state like Karnataka which is saw an excit duty reduction in the second half of last financial year, right.
So we have literally seen market shares over there grow significantly. That’s predominantly on account of good growth that the prestige and above segment has seen in the industry. Right. And we’ve kind of told those kind of growths as such. So just talking specifically about Karnataka, we today are more than 2% of the overall IMFL market. And when it comes to EMA, IMF will be almost 1/4 of the entire market. Right. So that is the kind of growth that we have seen in market share. Now similar let’s take for instance Telangana. Telangana we’ve seen more than 50 basis points growth in market share.
So all of which are on the back of a very strong consumer franchise. From a brand perspective obviously we are investing more even in terms of ANSP and so on and so forth. Right. So good amount of growth coming from there as well as well as the newer brands that we are launching. So Manchinel’s Whiskey is doing fairly well in the northeast. So it’s a combination of multiple things in terms of market share growth.
Abdish Roy — Analyst
Last question on Maharashtra, what kind of presence you have and pose the very sharp tax hike. If you could speak on the industry and for you how do you see next 2, 3 quarters thanks.
Amit Dahanukar — Chairman and Managing Director
So Maharashtra recently they have come out with an MML policy. Also Maharashtra made liquor which would be available for distilleries and bottling units in Maraq. Sir, we are still examining because the circular has come out very recently. So we are examining the eligibility criterion. But that could perhaps be an interesting segment for us to operate in. Provided of course we are eligible. And in terms of our presence in the state as it stands with the current portfolio, we are extremely small in Maharashtra. It’s low single digit saliency for us as a part of our overall portfolio.
Abdish Roy — Analyst
That part of the business. Do you see any challenge? And you also mentioned whether you’ll be eligible for mml. So this will be decided essentially by the government. Are the other rules clear? So does that make it possible for you to understand whether you are eligible or not or it’s completely commenced discussion.
Amit Dahanukar — Chairman and Managing Director
So right now we have not examined the circular in detail. So I would refrain from making any comment regarding our eligibility.
Abdish Roy — Analyst
And what kind of impact you think on the Maharashtra business. I know it’s small, but still if you could talk about excess X of the MML because that’s not in your hands once the eligibility comes then it will be clear X of that. Do you see double date decline, volume decline for your part of the business, you are small but still the challenge is there, right?
Amit Dahanukar — Chairman and Managing Director
Yeah. But we haven’t really examined the impact of the revised duty structures. Right. So from that perspective, really not in a position to answer this question. And in any case, like you mentioned yourself, it’s not needed moving. Really.
Abdish Roy — Analyst
Yeah. But your prices would have changed, right? I’m just asking whether the prices have been passed on because of the taxes that would have been done, right?
Amit Dahanukar — Chairman and Managing Director
Yeah. So basically there will be an impact on business on account of price increase, right? But. But nothing significant.
Abdish Roy — Analyst
Understood. Okay. That’s all from my side. Thank you.
operator
Thank you. Next question is from the line of NATIC from NV Alpha fund. Please go ahead.
Natic — Analyst
Thanks for my question. So I wanted to know first if I adjust for the subsidy income during the quarter and I do that same for the last year. Q1 I see there’s a drop in gross margin. So is my understanding correct? 1 and if yes, then what is led to this drop in gross margin if I adjust for the subsequent income? So you’re comparing which quarter to which one? Q25.
Amit Dahanukar — Chairman and Managing Director
Yeah. Yeah. So this is on account of a reduction in the nsr, right? In Andhra that we have seen. This is on account of that. So this will continue. I mean the current gross margin, if I adjust for the subsidiary, that rate will continue for the coming quarters because the prices have corrected. Yeah. So you can use this as the base for any incremental uptick in margins going forward.
Natic — Analyst
Got it. So the second question is, you know, how much of the subsidy that we’re getting from is still, you know, sort of remaining. If you could mention about that.
Amit Dahanukar — Chairman and Managing Director
So as we’ve mentioned earlier as well, this is not something that, that we can respond to. Yes, there, there is some, some additional subsidy that is expected, but frankly not in a position to quantify anything. And we book it as we receive it. Right. This is the cash that we receive and then we book it in our pnl. Yes, that is correct.
Natic — Analyst
Got it. So my next question is, you know, in terms of the Northeast, if you could give me the market size and the potential that we can rely from there from the scheme that we’ve launched recently.
Amit Dahanukar — Chairman and Managing Director
Yes. As it stands our east and northeast saliency as a total percentage of overall volumes is in the mid single digits range, early to mid single digit range. Obviously with Mansion House growing in these states, we do expect to increase the saliency for this region as such. Now if you go to see Mansion House Whiskey.
Natic — Analyst
Right.
Amit Dahanukar — Chairman and Managing Director
Purely in a couple of states from east and Northeast, the segment itself is a decent 6 million case market. So there is a big play over there at that price point within Whiskey. But in terms of where we get to by the end of it, that we will see over time. But yes, we do see east and Northeast playing an important role for us with our own portfolio as well as with the impending acquisition of IV.
Natic — Analyst
Right, right. And what would be our share currently, sir out of the 6 million market? Russell?
Amit Dahanukar — Chairman and Managing Director
No, it will be in low single digits as of now.
Natic — Analyst
Last question is, you know, just wanted one clarification on the, on the acquisition that the 3,000 crore revenue we mentioned that is net of excise duty or it includes excise duty?
Amit Dahanukar — Chairman and Managing Director
No, it’s net of excise duty.
Amit Dahanukar — Chairman and Managing Director
Thank you.
operator
Thank you. Next question is from line of Sir Pradeshi from Motilal Aswal. Please go ahead.
Sir Pradeshi — Analyst
Hi Amish. Good afternoon and thanks for the opportunity and congratulations. Just one question on the integration. You did mention that six months timeline is required for in internal blue integration. What are the things at what stage? We are. If you can just give some sense.
Amit Dahanukar — Chairman and Managing Director
So see the thing is that because we are still awaiting closure of the transaction, there is little information that we can provide on this front except for the fact that there is a transitions services agreement which also includes manufacturing within this Whereby the seller would assist us in undertaking business as usual till the time all registrations and everything come into our hands. Right along with that there are certain other things which form a part of the slump sale where we are getting certain resources from them. But again reiterating the same fact that because of confidentiality restrictions, not in a position to respond to those either.
With regards to business as usual from a liquid perspective, we do have a long term supply arrangement with Shiva’s brothers for procuring the cad which is an important ingredient of Imperial Blue.
Sir Pradeshi — Analyst
I got that. What you’re saying. You mentioned that it’s six months timeline. Are you optimistic or are you pessimistic? Or you really think in six months everything will get in your hand? That’s the only question I have.
Amit Dahanukar — Chairman and Managing Director
No. So. So I think as we move along we will know. But. But yeah, you can consider that six months is the integration time that we are looking at.
Sir Pradeshi — Analyst
All right. Okay. Thank you and all the best.
operator
Thank you. Next question is from line of Suvan Mittal from mfc. Please go ahead.
Suvan Mittal — Analyst
Hello sir. Thank you for the opportunity. I have only two questions lined up. On a quarter on quarter basis, from Q4 to Q1, our EBITDA margin has decreased extra subsidiary subsidy from 16.6% to 15%. Even though our gross margins have increased on a quarter on quarter basis like by 49 to 51. If you read some color that why the increasing gross margin has not translated to ebitda.
Amit Dahanukar — Chairman and Managing Director
So firstly, let me just clarify. The gross margin has come down from 47.1% to 46.9% even in the gross margin. You need to adjust the subsidy income, right? So that’s the first thing. Secondly, with respect to why the reduction in ebitda margin from 16.6 to 15.1, as you would know that there have been some higher legal cost that we had to undergo in this quarter. Right? As well as ansp reinvestment rates were slightly more than what they were in the previous quarter. And add to that the fact that a little bit of operating leverage came into play.
That’s the reason why you’re looking at a slightly lower EBITDA margin.
Suvan Mittal — Analyst
Okay, sir, thank you. My second question being when should the capacity increases the Prague distillery expected to be completed and will it somewhere benefit us in a logistics cost? Because our major business in Andhra and we are not increasing a capacity of a sizable amount over there.
Amit Dahanukar — Chairman and Managing Director
So proud. We are confident that within 12 months we’ll be operating at the expanded capacities. And any benefit you foresee. Sir, on the Logistics cost. So this will be more in the bottling charges itself that there will be benefits that come through. Right. We are not quantifying the benefits. We’ve done the workings at our end but we are not disclosing the workings. Right. But these are significant benefits that we get on account of using our own wholly owned subsidiary or our own unit as a bottling unit.
Suvan Mittal — Analyst
Okay sir, thank you. That’s it.
operator
Thank you. Next question is from the land of Karan Kamda from choice. Please go ahead. Karan, may I requested to unmute and go ahead with the question. Karan, if you can hear us, can I request an unmute your line and proceed with your question please? Need to know response. We move to our next participant. Next question is from the line of Rishabh from Sancheti family. Please go ahead.
Rishabh — Analyst
Yeah, hello sir. Am I audible?
Amit Dahanukar — Chairman and Managing Director
Yes.
Rishabh — Analyst
I just wanted to understand what are the possibilities for expansion in the EBITDA margin for the existing business and what can be the drivers for the same? Sir.
Amit Dahanukar — Chairman and Managing Director
See as we keep premiumizing obviously that will have an impact on EBITDA margins. Along with that there are certain cost optimization initiatives that we are undertaking. Something that we’ve been speaking about over the past three quarters. Right. These are yet to be fully baked in. It’s happening and will continue to happen over the next couple of quarters. So there will be certain level of savings or other margin expansion that you will see on that account as well as we keep launching the newer brands. Okay. More premium brands across categories. You will see a little bit of an impact upfront from an ANSP reinvestment rate perspective as well.
But from a long term perspective we do look at margins to hit our guided margins of around 16 to 17% or even beyond optimization that you mentioned. If you can just give some more flavor on in which line item this optimization will happen. So this will be predominantly in the cogs. Right. So these relate to the packing material optimizations that we are undertaking including on the logistics side of it. Okay.
Rishabh — Analyst
And. And wherever the legal cost line that.
Amit Dahanukar — Chairman and Managing Director
Will also help in building the margin. Yeah. Yes, that’s right.
Rishabh — Analyst
Got it. Thank you sir.
operator
Thank you. Next question is from the line of Anjali Bajaj from Naredi Investments. Please go ahead.
Anjali Bajaj — Analyst
Thank you for giving me opportunity. My question is regarding this. How will you raise the money for individual due? Either internal accurate or through that?
Amit Dahanukar — Chairman and Managing Director
No. So there is already a disclosure that we have made with respect to the equity fundraise. Right. So the board has approved a preferential issue to the tune of almost 2,300 crores. Right. It goes into shareholders approval shortly and fairly soon we’ll have the funds raised through equity. Along with that we have, we are also raising debt for the balance portion. It’s an optimal mix that we are using when it comes to funding this transaction of nearly ones to one.
Anjali Bajaj — Analyst
Okay. Okay. And my second question is what is the subsidy policy from government company will receive further quarter also. Will you give me detailed reply on the subsidy matter?
Amit Dahanukar — Chairman and Managing Director
No, I think we have responded to the question already. There is nothing further that that we can add to that. To the. In terms of a response related to this. Essentially all that we can say is that the subsidy relates to the industrial promotion subsidy that has been provided by the government of Maharashtra under the package scheme of Incentives 2007. And we are accounting for subsidy as it is received.
Anjali Bajaj — Analyst
Okay. Thank you.
operator
Thank you. Next question is from land of Karan Kandar from choice. Please go ahead. Karan. May I request an unmute your line and proceed with your question. Due to no response we move on to our next participant. Next question is from name of Aditya Singh from Multibagger. Please go ahead.
Aditya Singh — Analyst
Am I audible?
Amit Dahanukar — Chairman and Managing Director
Yes, sir.
Aditya Singh — Analyst
Hello. First of all congratulations on a great set of numbers. I had only one question and the question was regarding the tax incident. So when can we see the tax incident from impact?
Amit Dahanukar — Chairman and Managing Director
So our appeal with Commissioner income tax is still under discussion. So we don’t have any update on that. For prudent purpose we suggest that from first July you may assume full incident of tax. And as and when we have an update from citfd, we’ll get back.
Aditya Singh — Analyst
Okay. Okay. And if I can just ask another question. If the tax incident come back, how can we still manage to be, you know, one of the biggest players in the IMFL or Al Qaeda industry.
Amit Dahanukar — Chairman and Managing Director
I think when it comes to our own cash flow generation. Right. These are extremely strong. Irrespective. Right. We are a growing business. We run the business in an asset like model. Right. So I think from an ongoing perspective there is no concern on growth. Just because tax incidence comes up upon. That’s power for the course. Right? That’s the way business works. So we are not concerned about that aspect.
Aditya Singh — Analyst
Thank you so much and.
operator
Thank you. Next question is from line of Arpit Shah from Stallion Asset. Please go ahead.
Arpit Shah — Analyst
Hello. Am I audible?
Amit Dahanukar — Chairman and Managing Director
Yeah. Yes sir, go ahead.
Arpit Shah — Analyst
Congratulations on a landmark acquisition you guys have completed. It’s a quite leap in terms of where we were, let’s say almost seven, eight years back. From a debt written balance sheet to a debt free Balance sheet and now going again to a very large acquisition. I just wanted to understand once we’ve gone aggregated rise of 41, 41 cross for the acquisition, what was our valuation metrics or what was our guiding principle in coming to December and how should we look off foreign payback for December going ahead that you can elude qualitatively or quantitatively, how should we look at it?
Amit Dahanukar — Chairman and Managing Director
So I think just to answer your question on the valuation metrics, obviously as a part of the entire evaluation process, we did look at multiple valuation methods, right? From DCF to trade in multiple precedent transaction multiple, so on and so forth. But having said that, we won’t be unfortunately be able to get into details in terms of how did we arrive at the numbers that we did given the scale of the business and given how much this adds to our own existing business in terms of even synergies and providing us a presence Pan India and across categories, we felt that the value that was paid was the right value.
Arpit Shah — Analyst
So would it be fair to say that the margins that this portfolio has would be closer to what we make on the branding side or it will be low double digit or high single digit margins?
Amit Dahanukar — Chairman and Managing Director
So while we can’t specifically comment on margin profile, I think the management and the board both believe that I think we have paid a fair price for the asset and we are going ahead with the funding also in a prudent way. And the company feels that the potential acquisition is very transformative in nature and really can reshape the identity of a company from a regional brandy player to a national player with presence in two of the largest categories categories in imfl. And if I am to give any comfort on with regards to the financials and stuff.
Right. See one thing is very clear, that this is a cash EPS accretive transaction for us. Right. Without getting into numbers, obviously that’s something that we’ll get into post closing. But needless to say, this is a cash EPS accretive transaction for us.
Arpit Shah — Analyst
Got it. If you can just comment qualitatively, what are the kind of synergies between the Brandy and the Whiskey portfolio and how should we look at in terms of synergies going ahead in terms of qualitatively in terms of distribution, raw material or anything of that sort?
Amit Dahanukar — Chairman and Managing Director
See, IB is a Pan India player with a pretty strong distribution and presence in Southern India. Right. That’s a known fact and that is something that I think has tremendous just benefits for us as well. Right. So that is one piece of it. The second piece of it Is that obviously from a team perspective or rather from organization setup perspective we are present in many of the states that IB sells in today. So these are the kind of synergy benefits that we get in terms of margin kickers from where the IB financials would be right now.
Arpit Shah — Analyst
Okay. And in terms of volume growth let’s say for the last couple of years it has been almost flattish because the focus was not there for them to scale up these. To scale up this brand. How should you look in terms of volume growth going ahead at least for this brand? Are there no annual growths where we can tailor the volumes really for us?
Amit Dahanukar — Chairman and Managing Director
See I think as part of the Amaya’s opening remarks we have know shared few details with regard to the transaction. I am afraid that you know this stage since we are between signing and closing, you know we can’t comment off further details at this stage.
Arpit Shah — Analyst
Sure got. I completely understand. Thank you so much.
operator
Thank you. Next question is from from other global. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity and once again congratulations on the acquisition of Imperial Blue. Quite a landmark deal. So I had a couple of questions first in this continuation to the previous one I understand that while we are closing we can’t disclose the margins, the existing margins but can you sort of give some guidance given that we know the revenue is well past 30003200 crores for Imperial Blue what can be the consolidated margins for once the transaction is done? Probably for 526 or 527.
Amit Dahanukar — Chairman and Managing Director
Sincerely we are very sorry but we are not guiding towards the combined business as it stands today. We will be more than happy to answer any questions once the closing happens.
Unidentified Participant
Okay, fair enough. And also for the transaction we have done an equity fundraise but you know the sound to the existing price was quite substantial. Was it? Usually the Trend is probably 10%, 12%, 15% from the CMP that to fundraise. Can you just sort of elaborate on the reasons behind giving such a heavy discount to the floor price?
Amit Dahanukar — Chairman and Managing Director
I think it wasn’t a discount to the floor price if anything it was at the floor price and the pricing for the prep issue was purely determined by the semi minimum pricing that works for preferential issues which was essentially 10 trading days or 90 trading days VBAC which are is higher. Right. And we went by that pricing frankly it just so happened that it was at a significant discount but that was the pricing method of.
Unidentified Participant
Okay, understood. Yeah that’s it from my side. Thanks a lot and wish you the best.
operator
Thank you. Next question is from Land of Nishika from Sapphire Capital. Please go ahead.
Unidentified Participant
Yes. So am I audible?
Amit Dahanukar — Chairman and Managing Director
Yes, you are.
Unidentified Participant
Yes. I just wanted to know what revenue guidance and margin guidance you are giving for FY26 and 27.
Amit Dahanukar — Chairman and Managing Director
Sure. So in terms of the revenue guidance for FY26, you’re looking at mid to high teen kind of revenue growth for FY26 followed by around mid teen kind of growth for FY27. With respect to margins, the margin guidance that we are providing towards is around 15 to 16, 16 and a half percent for FY26. And for 27 onwards you can look at 15 and a half to 17 and a half percent.
Unidentified Participant
Okay. And this is without taking into consideration the effect of the acquisition. Right. So once you can give us the number, the margin guidance can change.
Amit Dahanukar — Chairman and Managing Director
Yeah, yeah. This is steady state business. Pre. Pre acquisition.
Unidentified Participant
Okay, thank you so much. That’s it from my friend.
operator
Thank you. Next question is from. From Starship India. Please go ahead.
Unidentified Participant
Yeah. Hi. Congratulations on a good set of number. My question was for any to the nsr. So. What NSR do we expect for the year considering like it’s come to 1205 this time? You know as like you have product launches in H2. Could you also throw some light on that? Like the new product launches that you have and if your NSR will improve going forward?
Amit Dahanukar — Chairman and Managing Director
Yeah. So you’re looking at the NSR per phase to increase from the current. From. From the current state which is around 1193 per case. Right. Now that the base has been set from a pricing perspective, including the AP impact, you can consider an increase on the purchase NSRS as such going. So the range would be anywhere between let’s say 1 to 2% growth in NSR per case on a yearly basis on existing business. Right around 1190, 1200.
Unidentified Participant
Yeah. Yes. Okay. And so my next question was regarding the revenue contribution of your royalty brands. Like could you please share that number?
Amit Dahanukar — Chairman and Managing Director
No, that’s not a segregation that we provide currently. Having said that, it’s a fairly small part of our revenues. Very small. Right. But the growth expected there is really high. Right. Like you know, considering that you’ve increased the stake from 13 crores to like 20 crores, the revenue growth there can be really high. Yeah, these are, these are high NSR products. Right. So there is tremendous potential in that business in the entire spaceman portfolio. Right. So that’s fair to say that there is good growth potential over there. But having said that, we are not guiding for spaceman portfolio currently.
Unidentified Participant
Okay, sir. And regarding the volume you have achieved 32 lakhs in this quarter. I believe so, you know, will this be the new base like for this year? Like the run rate will be above 32 lakhs next per quarter.
Amit Dahanukar — Chairman and Managing Director
Yeah, that’s right.
Unidentified Participant
So like is it possible to you know give a like a yearly number like the. For the year like how many cases is the management expecting to sell?
Amit Dahanukar — Chairman and Managing Director
Yes. So like I mentioned in my earlier guidance statement as well, we are looking at high teen growth for this year.
Unidentified Participant
So like 13.5 to 14 million cases this year.
Amit Dahanukar — Chairman and Managing Director
Yeah. Yes, closer to 14.
Unidentified Participant
Yeah. Okay. So thank you. That’s all from our side. All the best. Thank you.
Amit Dahanukar — Chairman and Managing Director
Thank you.
operator
Thank you. Next question is from man of heal, from choice institutional equities. Please go ahead.
Unidentified Participant
Hello and congratulations for the good set of numbers. I wanted to understand if Imperial Blue business, is it going to attract and 50% excise duty or is it lower or any higher?
Amit Dahanukar — Chairman and Managing Director
It would be kind of similar to our existing business.
Unidentified Participant
Okay, got it. And the second question would be going forward, how do we look at the portfolio diversification? Currently we were at standing at 90 brandy heavy portfolio and we, I think last quarter you did mention we were looking at 80 to 20 diversification or 80 considering brandy. But now I think it is going to change with whiskey coming in and impeded to blue whiskey of course. So what is the diversity diversification going forward?
Amit Dahanukar — Chairman and Managing Director
Yeah. So as you would see on slide 16 of the earnings presentation you will see that we have given a segregation of how the, how the Profoma portfolio would look like. So essentially you’re looking at two thirds of the business being whiskey in steady state. Current state business. Right. Brandy having a more than 30% on top of that.
Unidentified Participant
Thank you so much and all the best.
Amit Dahanukar — Chairman and Managing Director
Thank you so much.
operator
Thank you. Next question is from line of Amit Vora from Girnar Consultants. Please go ahead.
Amit Vora — Analyst
Good afternoon, can you hear me? Am I audible?
Amit Dahanukar — Chairman and Managing Director
Yes sir.
Amit Vora — Analyst
Thanks for the opportunity and congrats on a good set of numbers. Just two questions. You mentioned that they were high legal charges. So if you can quantify that for the quarter. I’m sorry if I missed that. If you answered it.
Amit Dahanukar — Chairman and Managing Director
No, I don’t think we will quantify that. But there was a hundred basis points increase on a year. On year basis. Let me just leave it at that.
Amit Vora — Analyst
Okay. Just to understand because this is a one off. That was the whole point. To understand that. Yeah, that’s helpful. Second thing, I understand you have mentioned that you don’t want to give more details on the IB acquisition. Just something which is related to FY25 is on the margins. If you can just give a number on the EBITDA margins that IB has currently. Will it be possible if that’s that number?
Amit Dahanukar — Chairman and Managing Director
I. I would if I could, but I can’t. Sorry for the moment.
Amit Vora — Analyst
Okay. Okay. Just one thing. If you can just tell this that it’s profitable at both PAT and EBITDA level. Is that a fair assessment?
Amit Dahanukar — Chairman and Managing Director
It’s a carve out, so there is no concept of PAT over here. But yes, it is profitable at EBITDA level.
Amit Vora — Analyst
Perfect. We’ll wait for further details on once the acquisition is complete. All the best. Thank you.
Amit Dahanukar — Chairman and Managing Director
Thank you.
operator
Thank you very much. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Amit Dahanukar — Chairman and Managing Director
Thank you all for joining today’s call and for your continued interest in our progress. As we look ahead. We are incredibly excited about the opportunities that lie before us in the coming quarters and years. While we fully recognize that the path ahead will present challenges, we are confident that we’ve identified the critical areas, both short term and long term, that will drive our success. We’re equally excited to have you with us on this journey as we work to establish ourselves as one of India’s leading Pan India IMFL players spanning multiple categories and premium price points.
Thank you once again for your time and support. We look forward to reconnecting with you soon.
operator
Thank you very much on behalf of CDR India. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
operator
It.