Tilaknagar Industries Crosses Rs 2,000 Crore Revenue in H1 FY27 as Imperial Blue Gains Market Share

Tilaknagar Industries Limited reported net revenue of over Rs 1,000 crore for the second consecutive quarter, taking its net revenue for H1 FY27 to Rs 2,059 crore, up 180 percent year-on-year after adjusting for subsidy. The company's performance was supported by growth in secondary sales, market share gains for Imperial Blue Whisky and stabilisation of operations in states transitioning out of its Transition Services & Manufacturing Agreement (TSMA).

While primary volumes remained largely flat in Q2 FY27, secondary volumes increased 7.8 percent quarter-on-quarter. Imperial Blue Whisky recorded 8.5 percent growth, while Mansion House Brandy grew 7.1 percent. Imperial Blue also gained over 100 basis points in all-India market share, with growth across 17 states, including Karnataka, Andhra Pradesh, Uttarakhand, Assam and Rajasthan. Mansion House Brandy became the number one brandy across price points in Karnataka in September 2026.

The states that transitioned out of the TSMA after Q1 have now stabilised under TI's operations. The company expects the final remaining state to transition towards the end of FY27, with related exceptional costs declining significantly during the quarter.

Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries Limited, said, "With the states transitioned out of TSMA after Q1 now stabilised, we have taken another decisive step towards completing the Imperial Blue integration. Our secondary volumes grew by 7.8% during the quarter and Imperial Blue continued to gain market share across the country, reflecting the strength of our brands and the reach of our expanded distribution network."

The company reported an EBITDA margin of 14.1 percent in Q2 FY27, compared with an estimated 16.5 percent excluding inflationary pressures. Higher costs for packaging materials, particularly glass, continued to affect margins, while extra neutral alcohol (ENA) prices began rising towards the end of the quarter due to higher fuel and grain costs. TI said cost optimisation measures introduced in Q1 had started delivering results and helping contain the impact of input cost increases.

Net sales realisation per case declined slightly due to changes in state mix. The company expects realisations to improve through a more favourable state mix, price increases and new product launches from FY28 onwards.

Policy changes in key markets also influenced performance. Karnataka's recent excise reforms supported growth in the Prestige and Above category, benefiting Imperial Blue and Mansion House. In Tamil Nadu, the company reported early signs of policy reform. Mansion House Reserve Brandy recorded more than 25 percent quarter-on-quarter volume growth and 50 percent year-on-year growth in September 2026, its highest-volume month to date.

During the quarter, TI also entered the tequila category through a strategic investment in Black Tiger Distilleries, the producer of Bodega Suprema No. 5, a 100 percent Blue Weber Agave Tequila. The company also launched its first above-the-line campaign for Imperial Blue Packaged Drinking Water under the "Men Will Be Men" platform.

Dahanukar said, "Our focus continues to be on delivering profitable growth in Imperial Blue and Mansion House, with a clear vision of long-term value creation. As the largest domestic P&A IMFL player in India and the largest P&A IMFL player in South India, we will continue to accelerate our luxury and super-premium portfolio across key markets, while leveraging Imperial Blue's strong distribution network to introduce new products across premium price points."

The company also showcased Mansion House Brandy and Monarch Legacy Edition Brandy in Times Square, New York City, for 72 hours over Independence Day, recording 2,500+ plays and reaching 1.2 mn+ visitors.