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Tilaknagar Industries Ltd — Call Transcript 2026
Jun 2, 2026
60357_rns_2026-06-02_efc38931-db6c-43d6-a485-526058a599d2.pdf
Call Transcript
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ESTD. 1933
TILAKNAGAR
INDUSTRIES LTD
June 02, 2026
To,
BSE Limited
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai 400001
Scrip Code : 507205
To,
National Stock Exchange of India Limited
Exchange Plaza, C-1, Block-G,
Bandra-Kurla Complex, Bandra (East),
Mumbai-400 051.
Symbol : TI
Sub: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Transcript of Earnings Conference Call held for Q4 & FY26 results
Dear Sir/Madam,
With reference to our letter dated May 26, 2026 and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the transcript of the earnings conference call with analysts and investors held on Saturday, May 30, 2026 to discuss the Q4 & FY26 results.
The same is available on the website of the Company at www.tilind.com.
Kindly take the above on record and acknowledge receipt.
Thanking you,
Yours faithfully,
For Tilaknagar Industries Ltd.
Chemangala
Ramachar Ramesh
Digitally signed by
Chemangala Ramachar Ramesh
Date: 2026.06.02 11:29:33
+05'30'
Chemangala Ramachar Ramesh
Whole-Time Director
DIN: 08876738
Encl: a/a
Corp. Office: Industrial Assurance Building, 3rd Floor,
Churchgate, Mumbai, Maharashtra - 400 020, India
P +91 (22) 2283 1716/18 F +91 (22) 2204 6904
E [email protected]
CIN: L15420PN1933PLC133303
Regd. Office: P.O. Tilaknagar, Tal. Shrirampur,
Dist. Ahilyanagar, Maharashtra - 413 720, India
P +91 (2422) 265 123 / 265 032 F +91 (2422) 265 135
E [email protected]
Web: www.tilind.com
TILAKNAGAR INDUSTRIES LTD
Tilaknagar Industries Limited
Q4 FY26 Earnings Conference Call
May 30, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to the Tilaknagar Industries Limited's 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 this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this call is being recorded.
I now hand the conference over to Mr. Siddharth Rangnekar from CDR India. Thank you, and over to you, sir.
Siddharth Rangnekar:
Thank you. Good morning, everyone, and thank you for joining us on Tilaknagar Industries Limited's Q4 and FY26 earnings conference call. We are joined today by Chairman and Managing Director, Mr. Amit Dahanukar; Chief Strategy Officer, Mr. Ameya Deshpande; Chief Financial Officer of the company, Mr. Rajesh Choudhary; and General Manager, Growth and Innovation, Ms. Sanaya Dahanukar.
We shall commence with views from Mr. Dahanukar on the performance and financial highlights, followed by a brief commentary from Mr. Deshpande on 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 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 websites.
I would now like to request Mr. Dahanukar to make his opening remarks. Over to you, sir.
Amit Dahanukar:
Good morning, everyone. Happy to have you all join us on this earnings call to discuss the Q4 FY26 and full year FY26 results. This is the first full quarter where we will report on the performance of Imperial Blue business division. 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.
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Before I begin with the quarterly performance, there are 2 achievements I wanted to highlight. One, we achieved a volume of almost 20 million cases in FY26 with only 4 months of Imperial Blue business under our ownership. Second, Mansion House Brandy crossed the volume benchmark of 10 million cases in FY26, cementing its position as India's largest P&A brandy.
In FY26, our overall volumes increased by 68%. Ex-IB, our volumes increased by 14% to reach 13.6 million cases in sales. During Q4, our overall volumes increased by 135% on a year-on-year basis, crossing 8 million cases, of which IB was 4.6 million cases. Ex-Maharashtra, IB recorded a growth of around 9% versus Q4 FY25. With this impressive performance, TI continues to be largest P&A IMFL player in Southern India with a market share of close to 40% in Q4 FY26.
On the policy front, we have seen one of the largest states witnessing a progressive change in excise policy, which has reduced the consumer price of our 2 flagship brands, Imperial Blue Whiskey and Mansion House Brandy by INR 20 per nip. Basis what we saw in FY25 with price reductions, we are expecting further growth in the state.
Before I start on the financial performance, I want to touch upon the recent change in presentation / disclosure with respect to revenue recognition. Before the acquisition of the Imperial Blue business, we used to present the selling expenses such as discounts, schemes and similar incentives to customers and distributors under the head of Other Expenses. However, Q4 FY26 and going forward, we will be showing this as a reduction from the gross revenue itself. As the business has now expanded significantly into non-corporation markets as well, management has now taken the view to update the presentation disclosure in line with future prospects and better comparability with peers. This change will have a negative impact on reported revenue and gross margins, but will have a positive impact on EBITDA margins and PAT margins. There will be no impact on absolute EBITDA, PAT or reported EPS.
Now moving over to financial performance. The overall NSR increased by 5.4% to INR 1,177 per case for Q4 FY26 from INR 1,116 per case in Q4 FY25. On an ex-IB basis, the NSR increased by 2.6% in Q4 FY26. For the year ended 31st March, the NSR stood at INR 1,165 per case.
We witnessed a strong growth of 148% year-on-year basis to reach a net revenue of INR 949 crore during the quarter. Adjusted for subsidy, we recorded a growth of 154% to reach INR 941 crore. EBITDA stood at INR 155 crore for Q4 FY26, clocking
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a growth of 97% year-on-year and margin of 16.3%. Adjusted for subsidy, the EBITDA grew by 124% to reach INR 146 crore and a 15.5% margin on the combined business.
For the year ending March-26, our revenues grew by 70% versus FY25 to reach INR 2,346 crore. Adjusted for subsidy, we clocked a growth of 69% to reach INR 2,279 crore. In the same period, EBITDA grew by 64% to reach INR 419 crore. Adjusted for subsidy, the EBITDA was INR 352 crore, a 56% increase versus FY25. We incurred an exceptional expense to the tune of INR 63 crore during Q4 FY26, predominantly on account of TSMA fees and impact of changes in labor code.
I now wanted to reiterate that our focus going forward will be divided into 4 parts. First, continue our journey to generate and fulfil demand for our brands to deliver double-digit volume growth. Second, optimize packaging, processes & supply chain and reap benefits of operating leverage & economies of scale to help us achieve an EBITDA margin of 16%-18% on the combined business.
Third, focus on efficient capital deployment, disciplined debt management and working capital investments, facilitating the reduction of net debt-to-EBITDA below 1.0x by FY29. And fourth, ride on the pan-India distribution strength of Imperial Blue and Mansion House to expand TI's luxury and premium portfolio, including Spaceman Spirits Lab.
On the supply front, we have received the government nod for starting operations at our expanded capacity at Prag in Andhra Pradesh, one of the largest states for Tilaknagar Industries. The capacity has now increased from 6 lakh cases per annum to 36 lakh cases per annum. This expansion is a testament to Tilaknagar's push towards safeguarding supplies and demonstrating execution capabilities towards long-term capacity planning. On the back of this expansion, TI expects savings in bottling costs to the tune of INR 10 crore per annum. This expansion entailed an investment of around INR 59 crore, which has been fully invested.
As on 31st March 2026, our gross debt stood at INR 2,295 crore and net debt stood at INR 1,911 crore. Lastly, the Board of Directors have recommended a dividend of INR 1 per share for FY25-'26 to the members at the ensuing Annual General Meeting.
I will now hand over to Ameya to take you through the integration of Imperial Blue and provide guidance on the future performance.
TILAKNAGAR INDUSTRIES LTD
Ameya Deshpande:
Thank you, and a very warm welcome to everyone joining us today. On the post-acquisition integration front, we are in the midst of a highly operations-heavy transition. Also, as mentioned earlier, we had taken TSMA support services from Pernod Ricard, while the labels under TI name were being registered. In the Q3 earnings call, we had mentioned that TI will exit the TSMA for significant operations by the end of Q4 FY26, and we have delivered on that. 75% of the IB business has exited TSMA till Q4 FY26.
For the states where we have exited TSMA in Q4 FY26, we have already started full-fledged operations at TI units. Now only 3 states remain under TSMA, and we expect to transition them over the course of the next few quarters with an outer date of March-27. After the exit of TSMA in some of the states in Q4, we faced small business disruptions in the first couple of weeks of April. However, the team has done a commendable job in delivering record volumes in the month of May for Imperial Blue under TI ownership.
On the margin front, because of the current ongoing geopolitical scenario, we do expect some pressure on the input costs and margins. To combat this, we have identified and are working on several areas of cost optimizations, which will mitigate the impact of this increase in raw material prices.
With regards to our team readiness for a life post acquisition, during the last few months, we have onboarded several senior leaders as well as built a pan-India team to manage operations. We now have a fully built team to deliver continued success, having increased our workforce from around 350 employees to 850 employees as of March.
Our strategy to lead the premiumization trend is anchored by a dual engine, the strength of our existing portfolio and a robust NPD pipeline. This is further accelerated by our 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.
For FY27, we expect to achieve a high-single digit to low-double digit volume growth for the combined business, which will be followed by a double-digit volume growth over the next couple of years. We expect a double digit volume CAGR over the next 3 years.
In terms of margins, we expect the consolidated EBITDA margins to reach 16%-18% for the combined business over the next 24 to 36 months. The positive change in guidance also includes the change in the presentation and disclosure of selling
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TILAKNAGAR
INDUSTRIES LTD
expenses, which Mr. Dahanukar had spoken about earlier. As guided in the past as well, we expect the net debt-to-EBITDA ratio to go below 1.0x by FY29.
With that, I would now request the operator to open the call for Q&A.
Moderator:
Thank you, sir. We will now begin the question-and-answer session. The first question comes from the line of Chetan Mahadik with Systematix Group. Please go ahead.
Chetan Mahadik:
Thank you for the opportunity. A few questions. Firstly, I wanted to understand what led to the flattish volume growth in Q4 for our ex-IB business? And for Imperial Blue, if you can tell us about the seasonality in the business, like which are the strongest quarters, which are the weak ones for IB?
Amit Dahanukar:
So one of the reasons is that Q4 last year in Andhra Pradesh was very high because the route to market has just recently changed in October / November of 2024. The route to market change led to sales of Andhra Pradesh being very high in Q4 FY25. So that was predominantly the reason. But on a secondary basis, if you see our existing business - it has grown by around 5%.
Chetan Mahadik:
Okay. And on the Imperial Blue front, if you can highlight about the seasonality in the business, like which are the strong quarters for you?
Ameya Deshpande:
So Chetan, unlike the TI business where Q1 is significantly weaker, and that is very visible in the numbers, IB is slightly more equally distributed among the quarters. Having said so, H2 does form around 52% of the volumes. So you will see some seasonality coming in for IB as well.
Chetan Mahadik:
Okay. Got it. And my last question is on margins. So say, we are expecting around 250 to 400 basis points in margin expansion on the acquired business in the next 2 years. So how much of this should be from the custom duty reduction on scotch imports and say, how much from the operational or strategic initiatives?
Ameya Deshpande:
Any reduction in custom duty, will reduce the scotch prices and consequently provide a positive impact on the gross margin levels. However, this will be majorly towards Imperial Blue business. It will not have any major impact on the Ex-IB portfolio of Tilaknagar. On the combined business basis, the margin benefit will be to the tune of 60-100 bps.*
Apart from the India-UK FTA benefit, there are multiple cost optimization benefits and potential price increases which will have a positive impact on the margins. Telangana is one of the potential states where we are expecting a price increase,
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TILAKNAGAR
MANAGEMENT
but obviously, timelines are not known on that front. But given how large Telangana is for us as a state, it will have a reasonable impact on margins.
Chetan Mahadik: Okay. Got it. Thank you and all the best.
Moderator: Thank you. The next question comes from the line of Mehul Desai with JM Financial. Please go ahead.
Mehul Desai: Thanks for taking my question. Firstly, just wanted to understand on how are you looking at run rate for Imperial Blue given that there is the Maharashtra impact, which might continue for 1 or 2 quarters and Karnataka, there is a benefit that can come, right? So some guidance on how do you look at IB volume growth? And how do you look at base business volume growth in your overall guidance of high-single digit to low-double digit kind of volume growth for FY27?
Ameya Deshpande: Yes. So, I think in terms of IB, Maharashtra, a great part of it is already set in the base of FY26. Going forward, we do expect to grow at a similar clip, if not better than the combined business. Between the 2, which is the erstwhile TI business and the IB business, you are looking at somewhat similar levels of growth. IB business potentially will grow slightly faster than the erstwhile business, probably on account of a lower base of FY26.
Mehul Desai: Got it. And can you help me with what was the NSR for IB in this quarter because there is a change in treatment? You had given the number of some INR 1,300 in last in Q3. Can you give this number for 4Q?
Ameya Deshpande: To be very frank, we are not giving an NSR segregation on a brand-wise basis. This was given in Q3 more from the perspective of giving visibility on modeling out the business plan. But we are not giving a separate number as such. But if you actually look at it, you are looking at somewhere around, let us say, under the new net of selling expenses, you can consider it to be approximately INR 20 to INR 30 above your existing combined NSR that we have reported.
Mehul Desai: And lastly, how should one look at gross debt and capex over FY27-'28?
Amit Dahanukar: So capex, I think, will be maintenance capex for both the years. I do not think capex will be large. Approximately, we can take INR 25 crore in each of the years.
Mehul Desai: Okay. And on gross debt?
Ameya Deshpande: And on the debt side, see, the way I would look at this is, as we mentioned earlier as well, that we have a moratorium of 2 years. So gross debt may not be the best way
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TILAKNAGAR
WALLERING LTD
to look at this. Maybe net debt is the way that you should look at it. By the end of March-27, you are looking at a net debt of approximately INR 1,700 crore or thereabouts. So you will see a reduction in the net debt with an upside bias to some extent.
Mehul Desai:
Got it. And this TSMA charges, I think only 25% of this business is left to be exited. What are the timelines where you think this can also go for full transition?
Ameya Deshpande:
So see, we have mentioned 3 states which are under TSMA right now. In all likelihood, there will be only 1 state which will continue in TSMA into the second half of this financial year, right? It is something that we have guided earlier as well. But basically, you can consider TSMA fees to be decreasing quarter-on-quarter with a full year impact of, let us call it, anywhere between INR 55 crore to INR 60 crore.
Mehul Desai:
For the entire year. And just, obviously, given that you did highlight that you have invested behind building the team, this Q4 run rate of INR 43 crore of staff cost, is this more a steady-state run rate that one can look at from a staff cost perspective?
Amit Dahanukar:
Yes, that would be correct.
Mehul Desai:
Thanks, Amit. This is really helpful.
Moderator:
Thank you. The next question comes from the line of Heer Gogri with Choice Equities. Please go ahead.
Heer Gogri:
Hello. Thank you for the opportunity. I wanted to understand, are we going to incur any further costs related to Imperial Blue? Do we have any plans there? Or are we all settled?
Ameya Deshpande:
So Heer, there, as we mentioned in the earlier presentations as well, after 4 years of the acquisition, there will be a deferred consideration. There is a deferred consideration of EUR 28 million that we need to pay to Pernod Ricard. But apart from that, there are no other costs that are to be incurred.
Heer Gogri:
And also on the portfolio front, I think we are looking at new P&A launches as well. Any highlights that you can give on that?
Ameya Deshpande:
I think its a little premature for that one. For the moment, our focus very much lies in transitioning IB business into TI as a whole. We see tremendous potential for the combined business as it stands today. Having said so, yes, we have an NPD pipeline in place. And hopefully, we will be in a position to speak a bit more about that in the quarters to come.
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TILAKNAGAR
WALLERING LTD
We also have the luxury business which is something of immense importance for us. We have built a team very recently for that. Sanaya looks at that part of the business and leads that from TI's perspective as well. So frankly, loads of ambitions over there as well. But like I mentioned earlier, we will give further details on that as time progresses.
Heer Gogri:
And one last question from my side would be any comments on the Telangana dues?
Amit Dahanukar:
So Telangana dues from January onwards, they have been stable in terms of number of days. There has been no deterioration in the situation since January, but we are actively working with the government authorities to try and reduce the number of days of outstanding.
Heer Gogri:
Thank you and all the best.
Moderator:
Thank you. The next question comes from the line of Vipin Mittal with JSL Ventures. Please go ahead.
Vipin Mittal:
Thank you for giving me the opportunity. My question is with premium vodka gaining traction in India, does the company have any plans to launch a new vodka brand or expand its existing vodka portfolio?
Ameya Deshpande:
So as a part of our future strategic initiatives in terms of new launches as well, there are certain categories that we are looking at. But as it stands, I would refrain from talking about any new brands that we launched. But having said so, we do have a brand in the form of Amara Vodka, which is a part of the SSL portfolio. And we do see tremendous value in that portfolio as well. And with our usership arrangement kicking in towards the latter part of last year, you should be seeing some level of traction coming out of that into our books as well.
Vipin Mittal:
Okay. Thank you so much. One more question. What are the 3 states remaining under the TSMA?
Ameya Deshpande:
We will not disclose that.
Moderator:
The next question comes from the line of Karan Kamdar with Choice Institutional Equities. Please go ahead.
Karan Kamdar:
We did about 4.6 million cases in Q4, right? So given that into 4 and the current realization of INR 1,300, we would do about INR 2,400 crore of revenue on an annual basis. Is that a correct run rate to pitch IB business at for the next like, let us say, 1 year until this full integration is complete?
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TILAKNAGAR INDUSTRIES LTD
Ameya Deshpande: Yes. So the only thing is, as I mentioned, the NSR now with the change in the accounting needs to be adjusted accordingly, right? And you are on the right track. Just that you need to change the NSR per case assumption.
Karan Kamdar: Okay, NSR that would be on the higher side, right? Because if you exclude discounts, it will come a little bit lower, right, maybe 5%, 10-odd percent.
Ameya Deshpande: That is right. Yes.
Karan Kamdar: So when are we expecting like this full integration to complete '28 onwards? Or will is it likely to get delayed from that? What would be the challenge like it to get delayed?
Ameya Deshpande: Yes. So I do not think it will go into '28. We would be transitioned by end of FY27 itself. I do not see any reason for any kind of delays on that front.
Karan Kamdar: On the qualification that we have been receiving, so my understanding was that that is related to the Prag distillery. Is that not correct? Like when we do the investment that we did this year, will that not resolve it? Or is it about some other distillery?
Ameya Deshpande: So this relates to the Shrirampur distillery. It is not the Prag Distillery. This relates to the ENA distillery that we have in Shrirampur.
Karan Kamdar: And any plans on when we would be doing this investment this year, next year?
Ameya Deshpande: So it is under consideration. We will take a call at the appropriate time in terms of recommissioning of the distillery.
Karan Kamdar: One last question I have is on the synergies between 2 businesses. So when do you expect those to kick in? Like when can we expect Samsara to sort of benefit from this IB merger and nationwide presence say '27-'28, how do you see that kind of synergy picture?
Ameya Deshpande: So see, the SSL synergies have already kicked in. So we have already started the usership arrangement and so on and so forth. And as and when that takes further shape, you will see a good amount of cross linkages in terms of our TI organic luxury portfolio and super premium portfolio along with the SSL portfolio. But the bigger synergies also lie in the Imperial Blue acquisition, right, and the post stage of that.
Now what we have already started seeing is that from day 1 of acquisition itself, you have seen optimizations taking place on the employee cost front, given that we already had a team for the southern part of the country, a little bit of East and
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TILAKNAGAR
INDUSTRIES LTD
Northeast and obviously, on the corporate side. Along with that, there will be multiple optimization initiatives that we are running on the supply chain side as well, whether it is to do with bottling.
Let us remember that IB was a Pernod brand and Pernod had bottling units, which, to a great extent, many a times were dedicated for themselves, right, where all kinds of brands used to get done. So you will see kind of benefits coming out of bottling charges. You will also see other supply chain benefits on account of packaging as well as other general and admin overheads, which would be at a much lower end at TI.
Along with that, you will also have revenue synergies that will start kicking in FY27 onwards in the form of erstwhile TI brands as well as new brands getting launched in states where we were not present to begin with. And for that matter, even IB being launched in states where they were not present in, especially a couple of regions, right? So multiple revenue synergies to also kick in, in FY27.
Karan Kamdar:
If I can squeeze in one last question on margins. Very ambitious margins and 16% to 18% guidance. Can you sort of give us a path to that number from current, let us say, 14%, 15%?
Ameya Deshpande:
Yes. So as you would see in Q4, we have already done 15.5%. For the whole of FY26, we have done 15.5%. So I do not see a reason to start at a base of 14% firstly. I would use 15.5% as the base for our guidance. Now with regards to how is it that we are achieving this, obviously, on the lower end of our range of the guidance, you are looking at a 50 basis points improvement. This has purely been kept from the perspective of the current geopolitical tensions that exist, right?
So any kind of inflationary impact is going to be taken care of at the lower range of our guidance. As we go towards the higher end, obviously, everything that I have spoken about earlier on this call as well as in our past interactions will come to fruition, whether it is in the form of cost optimizations, whether it is in the form of just operating leverage, right, on account of growth as well as certain other factors like price increases.
Karan Kamdar:
Thank you, and all the best.
Moderator:
The next question comes from the line of Mehul Desai with JM Financial.
Mehul Desai:
Just on this margin thing, you said 15.5% for the lower end of the guidance. I mean, even in the case of RM inflation or the current crisis, you will be able to at least
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TILAKNAGAR
INDUSTRIES LTD
sustain the lower end of your guidance, right, as a base for maybe FY27. Is that a correct understanding?
Ameya Deshpande: So Mehul, from a full year perspective, yes. However, if we start talking about quarter-on-quarter basis, see, we are already into almost the third month of the quarter, right? And we have faced certain input cost inflations in Q1. So in Q1, I mean it will be incorrect of me to say that we will expand on these margins. You may see some level of short-term impact. But in a full year perspective and going forward, you should go with the guidance that we have provided.
Mehul Desai: Right. And this guidance includes UK FTA benefit, right?
Ameya Deshpande: Yes. The upper end of the guidance, Mehul, includes UK FTA benefit.
Mehul Desai: And the upper end also includes anything from Telangana price hike?
Ameya Deshpande: To some extent, it does. But I would like to surprise you with a higher margin.
Mehul Desai: Great. That is good to hear. Thank you so much. Sorry, one last question. On working capital, how should one look at inventory days and receivable days? I mean just some guidance on working capital given that FY27 will be a full year with both IB and base business being there.
Ameya Deshpande: Yes. So I think on an ongoing basis, Mehul, we can look at the working capital cycle in the range of 53 to 55 days of gross revenue. So that is the way I would look at it.
Mehul Desai: Great. Thanks, Ameya. Thank you so much.
Ameya Deshpande: Thanks.
Moderator: The next question comes from the line of Chetan Mahadik with Systematix Group.
Chetan Mahadik: Thank you for the follow-up opportunity. Just wanted to ask on the Nigeria subsidiary where we will be doing an investment of up to INR 30 crore. So like what is the strategic rationale behind this? And if you can highlight what is the addressable volume opportunity we are looking out there?
Rajesh Choudhary: Okay. So we have an existing business in Nigeria for around 2.5 lakh cases, and that is what we see the opportunity there.
Chetan Mahadik: Okay. Good.
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TILAKNAGAR
INDUSTRIES LTD
Rajesh Choudhary: It is a fairly decent business there. And Pernod had invested over a couple of years, and it is a sustainable business in Nigeria.
Chetan Mahadik: Okay, got it.
Moderator: The next question comes from the line of Raghav Rathi with Quadrrun Holdings. Please go ahead.
Raghav Rathi: Good morning, and thank you for taking my question. So we have earlier indicated that Imperial Blue will do around INR 2,200 crore of business. But when we had taken it over, it was doing around INR 3,300 crore. So when will we reach that normalcy in the Imperial Blue business? And when can we see a consolidated business of INR 5,000 crore plus along with our brandy and Imperial Blue inclusive?
Ameya Deshpande: So, I think, let me just clarify. In terms of our FY27 numbers, right, I think you will see us exceeding what we acquired the business at in FY25. I think there is some issue with the calculation because the Imperial Blue business would have done approximately on a pro forma basis, somewhere around 21 million to 21.5 million cases for this. So you are arriving at a much higher number than the INR 2,000 crore that you are referring to. But needless to say, just reiterating that FY27 will be a bigger business than what we acquired the business at in terms of FY25 being the base.
Raghav Rathi: So we should be able to do a revenue of more than INR 5,000 crore, including our brandy business?
Ameya Deshpande: Again, it comes down to the change in the accounting, right? Had we stuck on with the original accounting of not deducting the selling costs, right? Yes, we would have. But now that we are deducting it, it will be lesser than INR 5,000 crore.
Raghav Rathi: And what does the selling cost come to in percentage?
Ameya Deshpande: So see, the thing is that we are not explicitly sharing that number. Having said so, you will be able to calculate it on the back of Q3 numbers since we have in the past given a Q3 grossed up number as well. Basis that number, you will arrive at a percentage of anywhere between 6% to 6.5% of grossed up revenue.
Raghav Rathi: Okay. Thank you so much.
Moderator: Thank you. The next question comes from the line of Venkatesh D with Alpha Trade. Please go ahead.
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TILAKNAGAR INDUSTRIES LTD
Venkatesh D:
Hello, good morning. My question is regarding the recent policy changes in Karnataka. What will be that effect to the IB brand and for Tilaknagar Industries?
Amit Dahanukar:
So as I had mentioned in my opening remarks, we expect an MRP reduction of approximately INR 20 on both the flagship brands, Imperial Blue and Mansion House, on the 180 ml pack size. So with the reduction in the MRP, we may expect a further uptake in the volumes going forward.
Ameya Deshpande:
And just to give some kind of reference point, right, in terms of growth and all, the last time that a price reduction took place in Karnataka, wherein we saw similar kind of a price reduction for our portfolio from INR 257 a nip to INR 235 a nip, which was around INR 22, we saw significant growth in that state, right? So our growth in that state is beyond just high teens.
Venkatesh D:
Okay. And regarding the brandy market for overall India, can you give me some outlook on that? And how we will be growing on this?
Ameya Deshpande:
So see, brandy market, what is relevant for us is the Prestige and Above brandy market. So I will just speak about that for the moment. Now Prestige and Above brandy market is to a great extent driven by TI performance on the back of Mansion House and Courrier Napoleon brandy performance. So from that perspective, you can assume that brandy P&A will grow at a similar clip as what we would be growing at. So you can go with the guidance that I have already provided.
Venkatesh D:
Okay. Thank you. That is all from my side.
Moderator:
Thank you. The next question comes from the line of Anand S with Avendus Spark. Please go ahead.
Anand S:
Just a couple of questions. Firstly, in terms of taking our brandy to beyond South markets, your North and West, how many touch points we would have reached so far, let us say, in Q1? And what is the target we are looking for the current year? That is in terms of brandy penetration in the non-South market?
The second one is in terms of the TSMA costs that we are calling out for an exceptional item, right? There is no proportion of, let us say, a portion of operational expense that is a part of this TSMA cost? Or is it not going to reflect as our operational cost once the transition happens 100% towards Tilak-oriented entities? So how should we look at it? Just these couple of questions.
Ameya Deshpande:
Understood. So as it stands, we have not launched brandy in the northern markets. But having said so, we are in the process of doing that in FY27. This is true not only
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for the mass and the semi-prestige or mass and the mid-prestige portfolio, but even for our luxury portfolio in the form of Monarch. That is the first point. With regards to the TSMA fees, if I understand correctly, your question is whether any part of these fees will start showing up in operating expenses. Is that what you were asking?
Anand S: Yes.
Ameya Deshpande: No. So these are all significantly, what do you say, extraordinary items itself. And thereby, they will not show up at a future point in time in our operating expenses apart from a really small component of maybe 5% of the cost.
Anand S: Sure. That was helpful. Thank you.
Moderator: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for their closing comments.
Amit Dahanukar: Thank you all for joining today's call and for your continued interest in our progress. FY26 has been a landmark year for us. And as we look ahead, we are incredibly excited about 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 have identified the critical areas, both short term and long term that will drive our success. We are equally excited to have you with us on this journey as we work towards building a truly pan-India premium-focused alcobev company.
Thank you once again for your time and support. We look forward to reconnecting with you soon. Thank you.
Moderator: Thank you. On behalf of Tilaknagar Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.
- The transcript has been updated for a factual inaccuracy in response during the call.
Disclaimer: This is a transcription and may contain transcription errors. The Company takes no responsibility of such errors, although an effort has been made to maintain a high level of accuracy. The document has been edited for clarity.