Tilaknagar Industries is emerging as an attractive play on India’s premiumisation trend in the alcoholic beverages industry.

$TI The company has demonstrated strong operating momentum, while the acquisition of the Imperial Blue business provides a major opportunity to scale volumes, revenues and profitability. FY26 was a strong year for TI, with net revenue of approximately ₹2,346 crore, EBITDA of ₹352 crore and adjusted PAT of ₹232 crore. EBITDA grew 55.9% YoY, while the company delivered record annual volumes of around 20 million cases. The biggest growth trigger is the integration of Imperial Blue, a well-established whisky brand acquired from Pernod Ricard India. The acquisition significantly expands TI’s addressable market and product portfolio. Management expects synergies from the transaction to support EBITDA margin expansion, while targeting a net debt/EBITDA ratio below 1x by FY29. The company is also seeing strong traction in its core brands, particularly Mansion House, which has established a strong position in the Indian brandy market. Increasing premiumisation, rising disposable incomes and consumers moving toward branded spirits provide a favourable long-term industry backdrop. Importantly, TI has already demonstrated that it can translate volume growth into operating leverage. With Imperial Blue now contributing to the business, the next phase could involve substantial revenue scale-up, cross-selling opportunities, manufacturing synergies and improved profitability. Another positive is the company’s continued focus on premium spirits and newer categories, while investments in additional distillation capacity and international expansion could create further optionality. Overall view: Tilaknagar Industries presents a compelling combination of strong core brands + Imperial Blue integration + premiumisation + operating leverage + earnings growth potential. If management executes the integration effectively and maintains balance-sheet discipline, the company could see significant earnings compounding over the medium to long term.