NEW DELHI: Tilaknagar Industries is targeting double-digit volume growth in FY27, with the company expecting revenue growth to outpace volume growth by 200–250 basis points, driven by premiumisation, a stronger product mix and anticipated price increases across key markets.
The company is also strengthening its manufacturing and supply-chain capabilities through the sixfold expansion of its wholly owned Prag Distillery. The distillery’s bottling capacity has increased from 6 lakh cases per annum to 36 lakh cases per annum, and the expanded facility has received the necessary approvals to commence commercial production.
The expanded Prag Distillery capacity is expected to meet nearly half of Tilaknagar Industries’ total brand requirements in Andhra Pradesh. The move is likely to improve supply-chain efficiency, reduce freight costs and lower other structural operating expenses by enabling greater localisation of production in the state.
Tilaknagar Industries’ growth strategy comes after the company crossed the ₹1,000 crore quarterly revenue milestone for the first time. Consolidated net revenue stood at ₹1,046 crore in Q1 FY27, reflecting the impact of the company’s expanded business following the acquisition of Imperial Blue.
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However, profitability remained under pressure during the quarter. Consolidated net profit declined 64.31% year-on-year to ₹31.59 crore in Q1 FY27, compared with ₹88.50 crore in the corresponding quarter of FY26. Consolidated EBITDA margin also fell to 16.15% from 23.98%, primarily due to the consolidation of the lower-margin Imperial Blue business.
The company also faced pressure from higher packaging costs, particularly glass prices. Gross profit margin declined to 42.1% in Q1 FY27 from 45.2% in Q4 FY26, reflecting inflation in glass packaging and other input costs.
Despite the near-term margin pressure, Tilaknagar Industries expects revenue growth to remain ahead of volume growth by 200–250 basis points in FY27. Premiumisation, product mix improvement and potential price hikes are expected to support the company’s revenue and margin expansion strategy.
Tilaknagar Industries is also planning product price increases over the coming months, with a potential price revision in Telangana emerging as an important growth and profitability trigger. The company expects successful price revisions to support annualised EBITDA margin expansion of around 150–200 basis points.
The sixfold expansion of Prag Distillery is expected to provide an additional structural advantage as Tilaknagar Industries scales its business in Andhra Pradesh. By increasing localised production, the company can reduce logistics-related expenses and improve operational efficiency while supporting its expanding brand portfolio.
The Indian-Made Foreign Liquor (IMFL) industry is witnessing increasing premiumisation, supported by rising disposable incomes and changing consumer preferences. However, state-level pricing regulations and inflation in inputs such as glass and Extra Neutral Alcohol (ENA) continue to create margin challenges for manufacturers.
For Tilaknagar Industries, the key factors to watch in FY27 will be the pace of volume growth, implementation of price increases, recovery in gross margins and the cost efficiencies generated by the expanded Prag Distillery. Successful execution of these initiatives could strengthen the company’s profitability while supporting its longer-term expansion in key Indian spirits markets
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