Whalesbook
Tilaknagar Industries reported a strong Q2FY26 with volumes up 16.3% year-on-year to 3.4 million cases, driving net revenue growth to INR 3,982 million. The company gained market share and launched award-winning new products. Choice Institutional Equities maintained its target price of INR 650, forecasting a 19% net income CAGR despite a revised lower margin forecast.
Tilaknagar Industries (TLNGR) announced a robust performance for the second quarter of the financial year 2026 (Q2FY26). Volumes surged by 16.3% year-on-year to 3.4 million cases, marking a 6.5% increase from the previous quarter. This volume growth translated into a 6.2% year-on-year rise in net revenue, reaching INR 3,982 million, or 9.3% higher when adjusted for subsidies.
The company also demonstrated success in market expansion, gaining market share across key Indian states. Its product portfolio was enhanced with the launch of Mansion House Whisky in Odisha, Telangana, and Kerala, and Monarch Legacy Edition Brandy in select duty-free locations and southern markets. Further validating these launches, Mansion House Whisky and Mansion House Lemon Flavoured Brandy received 'Product Debut of the Year' awards at the 2025 Spiritz Conclave & Achievers Awards.
Outlook:
Choice Institutional Equities has revised its estimates to include Imperial Blue's Net Revenues of INR 30.67 billion. However, based on channel checks, the firm has lowered its consolidated margin forecast for FY28E from 15.6% to 11.3%. Despite this, the firm maintains its positive outlook on net income expansion, projecting a Compound Annual Growth Rate (CAGR) of 19% from FY25 to FY28E. Consequently, the target price of INR 650, derived using the Discounted Cash Flow (DCF) approach, has been maintained. This target price implies a Price-to-Earnings (PE) multiple of approximately 62x for FY27E and 42x for FY28E.
Impact:
This report indicates continued strategic growth for Tilaknagar Industries through volume expansion and successful new product introductions. While the revised margin forecast signals potential profitability pressures, the maintained target price suggests sustained confidence from analysts in the company's long-term earnings growth trajectory. Investors may monitor margin performance closely.
Rating: 7/10
Difficult Terms:
Q2FY26: The second quarter of the financial year 2025-2026.
YoY: Year-on-Year, a comparison with the same period in the previous year.
QoQ: Quarter-on-Quarter, a comparison with the immediately preceding quarter.
Mn cases: Million cases, a standard unit for measuring sales volume in the beverage industry.
INR: Indian Rupees, the official currency of India.
Subsidy: Financial assistance provided by the government or other entities.
Market Share: The percentage of total sales in an industry generated by a particular company.
Duty-free: Goods sold without certain taxes or duties, typically at international airports.
Outlook: A forecast or prediction of future conditions or performance.
Estimate: A calculation or judgment of the probable value or cost of something.
Imperial Blue: A brand of whisky, the revenues of which are being incorporated into the analysis.
Net Revenues: Total income generated from sales after accounting for returns, allowances, and discounts.
Channel Checks: Gathering market intelligence directly from distributors, retailers, or end-users.
Margin Forecast: An estimation of a company's profitability percentage in the future.
Consolidated basis: Financial reporting that combines the financial results of a parent company and all its subsidiaries.
FY28E: Fiscal Year 2027-2028, denoted as 'E' for estimated.
CAGR: Compound Annual Growth Rate, the average annual growth rate of an investment over a specified period longer than one year.
Target Price (TP): The price level at which an analyst expects a stock to trade in the future.
DCF approach: Discounted Cash Flow, a method of valuing an investment based on its expected future cash flows.
PE: Price-to-Earnings ratio, a valuation metric comparing a company's stock price to its earnings per share.
