Shares of Tilaknagar Industries surged 9% to ₹513 apiece in intraday trade on Tuesday, August 12, following the company’s strong June quarter results, driven by healthy volume growth of 26.5% YoY to reach 32.1 lakh cases, its highest-ever Q1 volume since FY15.
The company reported a profit after tax of ₹89 crore, a 120.8% jump from ₹40 crore in the year-ago quarter. Revenue from operations rose 30.6% YoY to ₹409 crore. Adjusted for the subsidy income of ₹38.6 crore, revenue growth was still a solid 20.5%.
Tilaknagar achieved its highest-ever quarterly EBITDA of ₹94.5 crore, with margins expanding 705 basis points to 23.1%. The company is a leader in the Indian-made foreign liquor (IMFL) brandy segment, which contributes 93% of its total volumes.
Its flagship product, Mansion House Brandy, is the largest-selling brandy in India and the second-largest globally. The company, in its earnings report, also provided an update on its acquisition of the Imperial Blue business division from Pernod Ricard India, which is subject to CCI approval.
TI expects approval by the end of calendar year 2025. The acquisition, structured as a slump sale, carries an enterprise value of ₹4,150 crore, including normalized working capital of ₹700 crore as of date and deferred consideration of ₹282 crore as of date, as per the compnay’s earnigs’ report.
Tilaknagar intends to finance the transaction through a mix of equity and debt. The deal is expected to be cash EPS-accretive post-closing, with the company projecting sustained top-line growth, healthy EBITDA margins, and strong RoCE going forward.
It expects the UK–India FTA to act as a major tailwind, potentially boosting EBITDA margins for the Imperial Blue business. Imperial Blue currently holds a 9% market share in the domestic whisky segment and is present in 27 states and UTs.
The company also announced a capital expenditure plan of ₹59 crore, which includes license fees and interest payments of about ₹34 crore, for the expansion of Prag Distillery. The upgrade will increase its capacity from 6 lakh to 20.36 lakh cases per annum, as per the company.
Stock up over 2,600% in 5 years
The company has rewarded their shareholders handsomely in recent years as the stock has been on a continued upward trajectory. Over the past five years, the company’s shares have surged from ₹17.75 apiece to the current level of ₹492, marking an impressive gain of 2,628%.
Notably, in late July, the stock crossed the ₹500 level for the first time to record a fresh all-time high of ₹524 apiece.
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