TI
Micro CapTilaknagar Industries Limited
Consumer
Tilaknagar Industries Limited (TI) is an Indian alcoholic beverage company. It is India's largest brandy player with Mansion House Brandy surpassing 10 million cases in FY26. Post-Imperial Blue acquisition, TI is transitioning to a pan-India, pan-category player with a focus on premiumization and luxury segments.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 2/100PAT -119% YoY · margin compression · Rev +147% YoY · +52% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹949 Cr | +147.1% | +52.3% |
| EBITDA | ₹155 Cr | +98.7% | +40.9% |
| Operating margin | 16.0% | -400 bps | -200 bps |
| PAT | ₹-15 Cr | -119.5% | NDF |
| PAT margin | -1.6% | -2163 bps | +1527 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
TI reports strong Q4 FY26 volume growth of 135% YoY to 8mn cases, driven by Imperial Blue acquisition. FY26 combined business volume grew 68% YoY to 20mn cases, with Mansion House Brandy reaching 10mn cases. EBITDA margin for Q4 and FY26 stood at 15.5%.
The acquisition of Imperial Blue has significantly boosted volumes and expanded TI's footprint. While integration costs and debt have increased, management has clear targets for margin expansion, debt reduction, and premium portfolio growth. The successful integration and realization of synergies are critical for the thesis.
Volume Saliency (LTM Mar-25)
Latest issuer-disclosed distribution across 2 reported categories.
Imperial Blue Integration & Market Share
Regain peak market share for Imperial Blue and expand its pan-India distribution.
Premiumization & Luxury Portfolio
Utilize IB's distribution strength to proliferate premium brands like Seven Islands Pure Malt Whisky and SSL portfolio in 10+ states.
Brandy Category Leadership
Deliver growth in P&A brandy and continue as category leaders, ensuring brandy gets its 'Share of Voice'.
Manufacturing Footprint Expansion
Planned expansion in manufacturing footprint to ensure supply-side safety and optimize overall footprint for operating leverage.
Andhra Pradesh Distillery Expansion
Government nod received for six-fold capacity expansion at Prag Distillery in Andhra Pradesh, from 6 lakh to 36 lakh cases per annum.
AP Capex Investment
INR 59 crore capex investment for AP expansion is 100% completed, expected to cover ~50% of TI's AP requirements.
Manufacturing Footprint Expansion
Successfully expanded TI’s manufacturing footprint across India in terms of units and bottling capacity, a mix of new units and brownfield expansion.
Imperial Blue Acquisition
Acquisition of Imperial Blue provides pan-India distribution strength and significantly boosts combined business volumes.
Cost Optimization Initiatives
Identified non-disruptive initiatives for packaging changes and new bottling arrangements to reduce costs, aiming for 250-400 bps margin expansion on acquired business.
India-UK FTA
Reduction in customs under India-UK FTA from 150% to 75% for scotch import.
Andhra Pradesh Market Growth
AP is a 40 mn case IMFL market, growing at 15% p.a., where TI is the #1 P&A player.
Input Cost Pressure
Expect some pressure on input costs on account of current geo-political tensions, though hopeful impact will be short-lived.
Business Disruptions
Small business disruptions in the first couple of weeks of April 2026 due to TSMA exit, but bounced back in May.
Integration Challenges
Successful integration of Imperial Blue business, including manufacturing transition and cultural alignment, is ongoing.
High Debt Levels
Total Gross Debt increased to INR 2,295 crore in Mar-26 from INR 42 crore in Mar-25, with Net Debt at INR 1,911 crore.
Finance Costs
Finance cost increased significantly to INR 69 crore in Q4 FY26 and INR 113 crore in FY26 due to acquisition-related borrowings.
Exceptional Items
Q4 FY26 includes INR 63 crores of exceptional items (TSMA/TSSA, transaction costs, labor code changes), impacting reported PAT.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing the impact of the Imperial Blue acquisition on overall growth and profitability. QoQ comparison is important to monitor the sequential progress of Imperial Blue integration and manufacturing transition.
Volume Growth (Combined Business)
Q4 FY26 volumes grew 134.7% YoY to 8.0 mn cases. FY26 volumes grew 67.6% YoY to 20.0 mn cases.
Volume Growth (Ex-IB Business)
Ex-IB business delivered 0.2% YoY volume growth in Q4 FY26 and 14.0% YoY growth in FY26.
Mansion House Brandy Sales
Mansion House Brandy surpassed 10 million cases in sales in FY26, up from 8.7 million cases in FY25.
NSR (Combined Business)
NSR for the combined business stands at INR 1,177/case in Q4 FY26, a 5.4% increase YoY.
FY27 & 3-Year Guidance Unchanged
Guidance for FY27 and next 3 years remains unchanged on both volume and margin fronts.
EBITDA Margin Target
Target to achieve an EBITDA margin of 16-18% on combined business by FY29.
Net Debt/EBITDA Target
Reduce Net Debt / EBITDA below 1.0x.
Volume Growth Target
Deliver a double-digit volume growth for existing brands including Imperial Blue; new launches will be additional.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Imperial Blue TSMA Exit | 3 states remain under TSMA. | Full exit from TSMA by Q4 FY27 and smooth transition of manufacturing operations. |
| EBITDA Margin | 15.5% (Q4 & FY26). | Progress towards 16-18% EBITDA margin target by FY29, indicating successful cost optimization and operating leverage. |
| Net Debt / EBITDA | 5.43x (INR 1,911 cr Net Debt / INR 352 cr FY26 EBITDA). | Reduction in Net Debt / EBITDA below 1.0x, indicating disciplined debt management and capital deployment. |
| Volume Growth (Ex-IB) | 14.0% YoY in FY26. | Sustained double-digit volume growth in the ex-IB business, alongside IB integration. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
43NeutralSMA20 -2.1% / mo
Technical chart
TIdaily · 3Y-13.6%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 51. Wait for confirmation.
- SMA20 falling (~6.5% over last month) — short-term momentum negative.
- RSI(14) at 51 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 16% off 52W high · 15% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 23/25 to the score.
- Balance sheet contributes 6/15 to the score.
- Cash flow contributes 3/10 to the score.
Main drags
- Fair-value margin of safety is negative at -571.5%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 87th percentile of the scored universe and 87th percentile within Consumer. Main check: results consistency is weak at 53/100.
High Trust Lite: Promoter pledge is zero. Key concern: Promoter holding fell 8.3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 87th pctile, median 67 · Micro: 80th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.02.
Trust risks
- ▸Promoter holding fell 8.3%.
- ▸2 recent quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 42.10
- P/B
- 3.55
- EV/EBITDA
- 25.93
- Market Cap
- 10639.00Cr
Profitability
- ROE
- 13.10%
- ROCE
- 11.80%
- ROA
- 0.34%
- Dividend Y
- 0.23%
Growth (CAGR)
- Revenue 5Y
- 34.00%
- EPS 5Y
- 54.00%
- Revenue 3Y
- 26.00%
- EPS 3Y
- 53.00%
Balance Sheet
- Debt/Equity
- 0.77
- Interest Coverage
- 3.71×
- Altman Z
- 3.41
- Book Value
- 121.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 11/5
- OCF
- -445.00 Cr
- EPS TTM
- 0.84
Shareholding
- Promoter Hold
- 31.71%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 44%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.