Tilaknagar Industries Ltd (NSE: TI) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Siddharth Rangnekar — Director
Amit Dahanukar — Chairman and Managing Director
Ameya Deshpande — President – Strategy and Corporate Development
Analysts:
Venkatesh — Analyst
Heer Gogri — Analyst
Ajay Thakur — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the Tilaknagar Industries Limited Earnings Conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and C door on a touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Siddharth Rangnekar from CDR India. Thank you. And over to you sir.
Siddharth Rangnekar — Director
And thank you for joining us on Tiratnagar Industries Quarter 3 FY26 earnings conference call. We are joined today by Chairman and Managing Director Mr. Amit Dhanukar, Chief. And Mr. Amer Deshpande and Mr. Rajesh Chowdhury, Chief Financial Officer of the company. 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. 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.
I would now like to request Mr. Dhanukar to make his opening remarks over to you.
Amit Dahanukar — Chairman and Managing Director
Good evening everyone. Happy to have you all join us on this earnings call to discuss the quarter three 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 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.
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. 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 Quarter 3A our overall volumes increased by 76.1% on a year on year basis reaching 5.3 million cases. Excluding IV, 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 Quarter 3, FY26 and 9 months. FY26 we have witnessed a strong growth of 90.5% on year. On year basis to reach a net revenue of 664 crores. Adjusted for subsidy we recorded a growth of 89.2%. EBITDA stood at 110 crores for 43 FI 26 clocking a growth of 82.3% and margin of 16.6%. Adjusted for subsidy, the EBITDA grew by 49.6% to reach 90 crores, a 14% margin on the combined business. For the nine months ended December 25th our revenue grew at 43.1% to reach 1471 crores. Adjusted for subsidy we still clocked a growth of 39.5% to reach 1,413 crores.
In the same period EBITDA grew by 50% to reach 265 crores. Adjusted for subsidy, the EBITDA was 206 crores, a 28.5% increase vis a vis the preceding nine months. We have incurred an exceptional expense to the tune of 169 crores during Q3FY26 on account of transaction related costs and TSMA fees. In terms of our portfolio related updates during this quarter we launched our luxury whisky 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. 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 P and a focused player. On the debt side, we have taken on debt to the tune of 2,100 crores from banks and NBFCs. The loan is subject to principal moratorium for the first two years of the six years tenure followed by a ballooning repayment structure with majority principal only due in the last year.
During the year we have received 2,093 crores as a part of the preferential issue. This includes proceeds received in the current quarter upon initiation of warrant conversion by all public investors. 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 year. I now hand over to Ameya to take you through the integration of Imperial Blue and provide guidance on the future performance.
Ameya Deshpande — President – Strategy and Corporate Development
Thank you. Very warm welcome to everyone joining us today evening. As mentioned by Mr. Dhanukar, we completed the acquisition of Imperial Blue on 30th November 2025. As disclosed to the Exchanges, the consideration paid to Perno Ricard was rupees 3442 crores of which 182 crore rupees was towards closing adjustments primarily relating to inventory taken over by us and prepaid expenses. There is another Euro 28 million to be paid to the seller after four years of closing that is in fiscal year 30. 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. 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 Q4FY26. 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. 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 plus cases opportunity in the Indian Alcaba 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. 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. 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 one time by FY29. With that, I would now request the operator to open the call for Q and A.
Questions and Answers:
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 2. 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 1. The first question is from the line of Venkatesh from Alpha Investors. Please go ahead. Venkatesh, please go ahead with a question.
Your line is unmuted. Venkatesh, I’m really very sorry but we are unable to hear you. Mr. Venkatesh may be requested to please check your line and rejoin the queue. Ladies and gentlemen, to ask a question please press star and 1. The next question is from the line of Karan Kamdar from Choice Institutional Equities. Please go ahead.
Venkatesh
Hello sir. I just wanted an update on Imperial Blue. Now that the transaction is complete, what sort of margins are we looking at? Xib as well as including IB and what. What are the prospects going ahead?
Ameya Deshpande
Yeah, so current, 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.
Venkatesh
Yes, yeah, sorry, go ahead. So 11% just for the Imperial Blue, right?
Ameya Deshpande
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 59%, if you look at the combined business, you’re looking at 150 to 250 basis points expansion. That’s combined business.
Venkatesh
Over 15% combined business.
Ameya Deshpande
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 steady state basis with 11.7% for IBM, it would come to somewhere around 13%. 12 and a half 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 next year.
Venkatesh
That’s, that’s very nice to hear. So additionally, what kind of synergy do we expect when with this acquisition and do we sort of expect Pavement Frit Labs to also use these synergies and go become a more national brand or are we thinking of launching more whiskey products?
Amit Dahanukar
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 our access to markets has, 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.
Venkatesh
Okay, so any plans to launch more whiskey brands or is that out of the question for now?
Amit Dahanukar
No. Organically we will launch certain whisky brands in segments which we see as promising over the next couple of quarters.
Ameya Deshpande
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.
Venkatesh
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?
Amit Dahanukar
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 a, it’s been a slightly underinvested brand for the last four to five years. So we will look at revamping our investments in ANSP across markets.
Venkatesh
Okay sir, thank you. I’ll get back in a.
operator
Thank you ladies and gentlemen, to ask a question please press star and 1. The next question is from the line of Venkatesh from Alpha Investors. Please go ahead.
Venkatesh
Good evening sir. My question is regarding the NSR for IB business and for industry. Hello. So basically the combined business NSR is 1, 2, 42 per case, right? This is the IB NSR is 1306 per case. I mean 1300. Okay. Yeah. And even exib NSR, right, has expanded from 1161 per case in Q3 of FY25 to 1209 in this quarter. And another question is regarding the quality of the IV brand like comparatively to past like three, four years back. All two was very nice. Right now the quality of the IV alcohol is like it’s not that good compared to the other brands of Allied Blenders or any other. Like there are comparisons. 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. And what will be the growth rate. For the IB band for this year and next year?
Ameya Deshpande
So we are guiding towards a combined business. Right. So we are as mentioned in my opening commentary for FY27 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.
Venkatesh
Okay, that’s from my side. Thank you.
operator
Thank you. The next question is from the line of Hir Gogri from Choice Equities. Please go ahead.
Heer Gogri
Hello. Thank you for the opportunity. I wanted to know about you mentioned. About Prague Distillery to be on track, fully operational by this this quarter of 2026. That’s so. And are we expecting the fully operational 3.6 million cases to start from this quarter or the, or rather the first part of 27?
Ameya Deshpande
Yeah, that would be. That would be right. We will commission the project by the end of this quarter of the Q4. Right. And while in the first quarter we may not look at 100% utilization right away. Right. But over the the course of the year safe to assume that we will have almost full utilization of the plant.
Heer Gogri
Okay, got it. And any license fees pending, our capex pending to be paid for this distilling.
Ameya Deshpande
Yeah, so there is certain around high single digit to low double digit kind of in crores. Right? Around 10 odd crores of investment still to be done.
Amit Dahanukar
The license fees have been fully paid.
Heer Gogri
Okay, got it. And also wanted to know about your views on the industry wise with Telangana dues faced by the industry. So your views on that and how is Tilaknagar facing the same? And what. What is your outlook on. On the same.
Amit Dahanukar
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 over to you.
Heer Gogri
Okay, got it. And one last question you mentioned you are looking at to revamp the IP business and invest in A and B. So any guidance for what. What percent of the revenue are you looking at for anp?
Ameya Deshpande
So he 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 of 250 to 350 basis points increase that is taking into consideration the increased A and P reimbursement rate.
Heer Gogri
Okay. Okay, got it. Thank you so much. That answers the question.
operator
Thank you. Participants, to ask a question please press star and 1. Ladies and gentlemen, to ask a question please press star and 1. The next question is from the line of Ajay Thakur from Anandrati Securities. Please go ahead.
Ajay Thakur
Hello. Thanks for taking my question. I want to understand a bit more on the Mahastra made decor in terms of, you know, the brands which have already come through. What kind of impact are we seeing because of the MML brands? Has we seen some kind of, you know, 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?
Amit Dahanukar
So MML has been introduced in Maharashtra in August. And of course that segment is currently. It is 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 degrown by 25 odd percent. 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 subjugation.
Ajay Thakur
Understood, Understood. So in just get 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 Ramping in terms of the numbers.
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 masoncy in terms of the segment. Having said that we’ll just wait and watch and frankly take it as it comes.
Ajay Thakur
Understood. Okay, very helpful. Thank you.
operator
Thank you participants. To ask a question please press star and 1. The next question is from the line of Vikrant Joshi an individual investor. Please go ahead.
Venkatesh
Hello. Good evening sir. Joining this first time I’m very long term investor in industries started from small investment and now like invested good amount of good amount in Kirk Nagar. Sir, I would like I’m little bit unhappy with this talk because see you are done a very great job like acquiring Imperial View and then the opportunity got credit for let’s say by the preferential shareholders and then the warrants but retail investor didn’t get a chance let’s say through rights right issue or something like that. So that was one thing. Second thing is if you see the volatility in these stock price even this quarter like the revenue has been increased like huge jump.
But then if you see profit margin that one time adjustment property negative. So how can that be improved sir? Because the stock price is directly proportional to the profits. Right. So as a retail investor I’m not getting dividends and now because of these negative, negative profits. So I’m not sure like how that stock will now respond to that. So that can that can be improved profitability. That is my question sir.
Ameya Deshpande
So Vikrant, I think I will not comment upon the 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. 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. 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.
Venkatesh
Right. The only request is like how like can we put more focus on improving the profit margins because you, even if you let’s say exclude that item 169 crores, 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’re seeing having 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 cause but I’m really, really long term investor and I’m really concerned about the property.
Amit Dahanukar
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 five, six years the company would have delivered a very good return for shareholders who have stayed invested with the company for horizon of say five to seven years. And we also believe that to remain invested for another three to five years we could see similar returns going forward. The company and its management is committed in delivering value for the stakeholders. And all the decisions which we have taken in terms of the inorganic acquisition through Imperial Blue, raising more than 2000 crores through a preferential allotment, 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.
Venkatesh
Right. Just the request was like how can we create opportunity for indeed like the retail investor as well. Like if you could have. It’s a raise like done the rights issue as well. Because other companies, if you see like 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 the acquiring of Behemoth was not easy and you have done the great job. Thank you. That’s it from us.
Amit Dahanukar
So just to you know, complete my narrative, I think during the fundraise the board contemplated various fundraising measures and it’s in its wisdom it decided to go ahead with a preferential allotment which was duly approved by board and then by shareholders as well.
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.
Amit Dahanukar
Thank you everyone for your continued trust and participation. Quarter three 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.
operator
Thank you on behalf of Tilaknagar Industries. That concludes this conference. Thank you for joining us and you may now disconnect your lines.