Tilaknagar Industries Q2 FY27 results: net profit up 2.2% to ₹53.86 crore

How did Tilaknagar Industries perform in Q2 FY27?

On the consolidated basis, revenue for the September 2026 quarter was ₹4,690 crore, compared with ₹915.59 crore in Q2 FY26 and ₹2,252 crore in Q1 FY27. The reported growth was 412.2% year on year and 108.2% sequentially. EBITDA was ₹316.90 crore, up from ₹60.20 crore a year earlier and ₹168.93 crore in the previous quarter; the margin was 6.8%, compared with 6.6% and 7.5%, respectively.

Profit after tax was ₹53.86 crore, against ₹52.68 crore in Q2 FY26 and ₹31.59 crore in Q1 FY27. Basic EPS was ₹2.18, compared with ₹2.71 a year earlier and ₹1.28 in the previous quarter. On the standalone basis, revenue was ₹4,689.93 crore and profit after tax was ₹56.48 crore; profit before tax was ₹53.34 crore.

What changed in Tilaknagar Industries' costs and profit?

Total expenses rose to ₹4,600 crore from ₹864.83 crore in Q2 FY26, a difference of ₹3,736 crore. Cost of materials increased by ₹1,005 crore to ₹1,211 crore, employee cost by ₹76.35 crore to ₹92.77 crore, finance costs by ₹133.55 crore to ₹135.65 crore, depreciation by ₹84.37 crore to ₹91.71 crore and other expenses by ₹2,453 crore to ₹3,086 crore. Other income rose by ₹3.16 crore to ₹5.31 crore, while there was no exceptional-item charge in the year-ago quarter.

The quarter included a ₹41.07 crore exceptional-item charge, against a ₹30.12 crore charge in Q1 FY27 and none in Q2 FY26. The company’s presentation attributed gross-margin pressure to packaging and ENA inflation, while supply-chain efficiencies provided some offset. Tax was unchanged at no exceptional item on the reported quarterly figures, and profit after tax rose by ₹1.18 crore year on year despite the higher expenses.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹6,263.19 crore, compared with ₹6,160.07 crore at 31 March 2026, while total equity was ₹3,018.31 crore against ₹2,981.71 crore. Borrowings declined to ₹2,201.77 crore from ₹2,294.92 crore, and cash fell to ₹72.27 crore from ₹218.20 crore. Inventories rose to ₹530.63 crore from ₹401.89 crore, trade receivables to ₹1,555.12 crore from ₹1,271.79 crore and trade payables to ₹428.43 crore from ₹336.91 crore.

For H1 FY27, operating cash flow was negative ₹4.06 crore, compared with ₹69.65 crore in H1 FY26. Investing cash flow was ₹80.58 crore against negative ₹242.55 crore, while financing cash flow was negative ₹222.45 crore against ₹986.88 crore. Capital expenditure was ₹9.46 crore, compared with ₹37.89 crore in the year-earlier period.

How has Tilaknagar Industries done over the last 8 quarters?

Revenue rose in each of the last eight quarters. It increased from ₹805.35 crore in Q3 FY25 to ₹881.18 crore in Q4 FY25, ₹863.87 crore in Q1 FY26 and ₹915.59 crore in Q2 FY26, before reaching ₹1,453.01 crore in Q3 FY26, ₹2,090.12 crore in Q4 FY26, ₹2,252.42 crore in Q1 FY27 and ₹4,689.98 crore in Q2 FY27.

Profit after tax was highest at ₹88.51 crore in Q1 FY26 and fell to ₹52.68 crore in Q2 FY26. It then moved to a loss of ₹105.41 crore in Q3 FY26 and a loss of ₹14.91 crore in Q4 FY26, before recovering to ₹31.59 crore in Q1 FY27 and ₹53.86 crore in Q2 FY27. The EBITDA margin was 10.9% in Q1 FY26, fell to 6.6% in Q2 FY26 and was 6.8% in Q2 FY27.

What else did the company announce?

The board approved the unaudited consolidated and standalone financial results for the quarter and half year ended 30 September 2026. It approved the appointment of Lt. Gen Shailesh Tinaikar (Retd) and Mr. Sanjay Saxena as additional independent directors for three years, subject to shareholder approval. Maj Gen Dr. Dilawar Singh (Retd.) and Mr. Satish Chand Mathur ceased as independent directors after completing their second consecutive terms, and the board committees were reconstituted from 31 October 2026.

The same-day filings did not report a dividend or fund raise. The company’s earnings presentation also said that it had entered the tequila category through a strategic investment in Black Tiger Distilleries, maker of Bodega Suprema No. 5. The board meeting began at 2.15 p.m. and concluded at 4.45 p.m. on 30 October 2026.

What did the auditors point out?

The auditors’ report included an emphasis of matter concerning the composite scheme of amalgamation between the company and its subsidiaries. The scheme had been approved by the board but remained subject to approval by creditors, the NCLT and other regulatory authorities, so no accounting effect had been given for it as of the balance-sheet date. The auditors said their conclusion was not modified in respect of this matter.

The excerpts also identified a qualified-opinion signal and referred to the acquisition of the Imperial Blue business division. The transaction was completed through a slump sale on a going-concern basis for a lump-sum cash consideration of ₹3,442 crore, with deferred consideration of EUR 28 million, approximately ₹290 crore, payable after four years. The Competition Commission of India approved the transaction on 7 October 2025, and the acquisition was completed on 1 December 2025.

What did Tilaknagar Industries' management say?

Management maintained FY27 combined-business volume-growth guidance at high single-digit to low double-digit growth. Beyond FY27, it maintained mid-teens volume-growth guidance, including planned launches from FY28 onwards, and mid-to-high-teens revenue growth over the next couple of years. The combined-business EBITDA-margin target remained 16-18% by FY29, with upward bias; management also expected net debt/EBITDA below 1x by March 2029 and March 2027 net debt below the March 2026 level.

Management said Imperial Blue’s FY27 volume growth remained double-digit and that the TSMA transition was expected to finish by the end of FY27. It said exceptional TSMA and integration costs were expected at ₹10-11 crore per quarter in Q3-Q4 FY27, with no TSMA fees in FY28. Packaging inflation reduced margins by about 2.5%, or roughly ₹25 crore per quarter, and management said pricing and cost actions were being pursued.

Management identified packaging inflation, elevated near-term ENA prices, further inflation sensitivity, the UKFTA classification review and Telangana overdues of about ₹550 crore as risks. It said Imperial Blue gained market share across 17 states, that secondary volumes grew 8.5% for Imperial Blue and about 7% for the existing business, and that pricing, state mix and launches from FY28 onwards were expected to support net sales realisation. Chairman and Managing Director Amit Dhankar said: “I want to reassure you that our target is to take the net debt in March 27 to below March 26 levels.”

How did Tilaknagar Industries shares react?

The filing was released after market hours. Tilaknagar Industries’ shares fell 3.8% within 5 minutes, 2.8% within 15 minutes and 1.8% within 30 minutes of the filing appearing. The reaction-day close was down 1.6% from the previous close of ₹478.75, and by the next day’s close the stock was down 3.0% from that pre-results close.

The stock underperformed the other Breweries & Distilleries companies: the industry median was up 0.3% on the reaction day and 1.1% by the next day, while the excess-sector move was negative 1.9 percentage points and negative 4.2 percentage points, respectively. Earlier results-day moves were positive 0.1% on 27 July 2026, negative 4.9% on 29 May 2026, negative 1.1% on 13 February 2026, negative 4.1% on 13 November 2025, positive 3.6% on 11 August 2025, positive 12.7% on 14 May 2025, negative 2.9% on 4 February 2025 and positive 14.8% on 4 November 2024.

How did other Breweries & Distilleries companies do?

Five other Breweries & Distilleries companies were compared for the quarter, with a median peer revenue growth of negative 2.6%. All 5 peers grew slower than Tilaknagar Industries, while none grew faster than the company. Among the peers for which profit was compared, 3 reported higher profit.