Tilaknagar Industries Ltd. (TI) is a prominent Indian alcoholic beverage company renowned for its diverse portfolio of brands across various liquor categories. The company is particularly celebrated for Mansion House Brandy, which holds the distinction of being the largest-selling brandy in India and the second-largest globally. Established by Amit Dahanukar in 1933, Tilaknagar Industries has cemented its position as a leading player within the Indian alcoholic beverage market.
The company's core business involves the manufacturing and sale of Indian Made Foreign Liquor (IMFL) and extra neutral alcohol. TI boasts a comprehensive range of brands spanning brandy, whisky, vodka, gin, and rum.
Tilaknagar Industries' brand portfolio is extensive, featuring well-known names such as Mansion House Brandy, Courrier Napoleon Brandy (Green and Red variants), Vodka, Mansion House Whiskey, Senate Royale Whiskey, Madira Rum, and Blue Lagoon Gin. With a legacy dating back to 1933, Tilaknagar currently leads India's brandy segment, commanding approximately 25% of the market share. While over 90% of its current sales are derived from brandy, the company is strategically focused on diversifying into the whisky segment, a category that dominates the broader Indian liquor market.
The company operates an extensive distribution network across India, comprising one owned facility, approximately three operating liquor subsidiaries, three leased units, and over nine tie-up units strategically located nationwide. Furthermore, Tilaknagar Industries manufactures and exports extra neutral alcohol to various international markets, including Africa, the Middle East, Southeast Asia, and Europe.
As of the latest available data, Tilaknagar Industries has a Market Capitalization of ₹6,602 Crore, showing a significant increase of 46.2% over the past year. This valuation positions it as the fifth-largest alcoholic beverage firm by market capitalization in India. The current stock price is ₹342, with key financial ratios including a Stock P/E of 28.9 and a Book Value of ₹45.6.
The company has reported strong financial performance in recent quarters:
Q4 FY25 Results (Quarter ended March 2025):
- Net Profit: Increased by 145.95% to Rs 77.35 crore, compared to Rs 31.45 crore in the same quarter of the previous year (March 2024).
- Sales: Grew by 13.11% to Rs 405.81 crore, up from Rs 358.78 crore in the corresponding quarter of the previous year.
- EBITDA: Subsidy-adjusted EBITDA showed robust growth of 35.5% year-on-year, reaching Rs 65 crore, with a margin of 16.6%.
FY25 Full Year Performance (Year ended March 2025):
- Net Profit: Rose by 66.36% to Rs 229.59 crore, an increase from Rs 138.01 crore in the previous fiscal year (FY24).
- Sales: Increased by 2.88% to Rs 1434.15 crore, up from Rs 1393.95 crore in the previous fiscal year.
- EBITDA: Subsidy-adjusted EBITDA for FY25 stood at Rs 226 crore, with a margin of 16.1%.
Tilaknagar Industries operates with a nearly debt-free financial structure. In Q3 FY25, the company fully repaid its term loan from Kotak Bank, resulting in a gross debt of only Rs 45 crore while maintaining a net debt-free position. The company's diligent focus on cash flow management has led to a net cash level of Rs 107 crore, underscoring its strong balance sheet.
The company consistently maintains robust profitability metrics, with a Return on Capital Employed (ROCE) of 28.4% and a Return on Equity (ROE) of 29.9%. Over the past five years, Tilaknagar Industries has achieved a commendable profit growth of 26.5% CAGR.
Tilaknagar Industries, the maker of Mansion House brandy, is in exclusive negotiations to acquire the Imperial Blue whisky brand from the French spirits group Pernod Ricard. This potential acquisition represents a significant strategic move for the company, with the Imperial Blue brand estimated to be valued at up to $600 million. If successful, this deal would be the largest acquisition in India's liquor sector in over a decade, following Diageo's $1.9 billion buyout of United Spirits in 2013.
The company plans to finance the acquisition of the Imperial Blue whisky brand, valued at Rs 5,206 crore, through a combination of debt and equity. Tilaknagar Industries has already secured a credit upgrade, which has led to reduced interest rates on loans. The company is actively working with Kotak Mahindra Bank and Avendus Capital to raise funds through non-convertible debentures and loans from foreign banks.
The company has made a decisive foray into the luxury, craft, and premium spirits categories. The Monarch Legacy Edition Brandy has received highly positive feedback from both the trade and consumers. Tilaknagar Industries is actively capitalizing on the burgeoning demand for premium alcoholic beverages by launching new products that have garnered favorable market responses.
In Q3 FY25, the company achieved its highest sales volumes in Karnataka and continues to expand its market share in Telangana, Kerala, and Puducherry. Despite facing operational challenges in Andhra Pradesh due to a strategic transition, the company demonstrated resilience with a 10% growth in primary volumes, particularly in the southern states.
Tilaknagar Industries shares experienced a rally of 11% on June 12, 2025, recovering from previous day's losses. Positive industry outlook is also being driven by expectations of lower input costs due to increased inventory levels of rice and wheat, which are expected to positively impact the liquor industry.
Currently, 100% of analysts recommend a 'BUY' rating for Tilaknagar Industries Ltd. The analyst target price for the stock is ₹438, suggesting an upside potential of 25.25% from the current price of ₹349.70.
With its debt-free status and a steadfast commitment to sustainable growth, the management expresses optimism regarding future revenue growth projections, particularly within the premium segment. The company remains vigilant about market dynamics and tax implications.
Tilaknagar Industries' strong financial performance, debt-free status, established market leadership in the brandy segment, and strategic expansion into the whisky market through the potential Imperial Blue acquisition position it favorably for continued growth in India's dynamic alcoholic beverage industry.
