Analysts/Institutional Investor Meet/Con. Call Updates

November 06, 2026 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Bandra-Kurla Complex, Bandra (East), Mumbai 400001 Mumbai-400 051. Scrip Code : 507205 Symbol : TI Sub: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Transcript of Earnings Conference Call held for Q2 FY27 results Dear Sir/Madam, With reference to our letter dated October 27, 2026 and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the transcript of the earnings conference call with analysts and investors held on Saturday, October 31, 2026 to discuss the Q2 FY27 results. The same is available on the website of the Company at www.tilind.com. Kindly take the above on record and acknowledge receipt. Thanking you, Yours faithfully, For Tilaknagar Industries Ltd. Minuzeer Bamboat Company Secretary & Compliance Officer Encl: a/a Tilaknagar Industries Limited Q2 FY27 Earnings Conference Call Transcript October 31, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Tilaknagar Industries Limited's earnings conference call. I now hand the conference over to Mr. Siddharth Rangnekar from CDR India. Thank you, and over to you, sir. Siddharth Rangnekar: Thank you. Good morning, everyone, and thank you for joining us on Tilaknagar Industries Limited's Q2 FY27 earnings conference call. We are joined today by Chairman and Managing Director, Mr. Amit Dahanukar, Chief Strategy Officer, Mr. Ameya Deshpande, Deputy Chief Financial Officer of the company, Mr. Anil Singal, and General Manager, Growth and Innovation, Ms. Sanaya Dahanukar. We shall commence with views from Mr. Dahanukar on the brief of performance and financial highlights, followed by commentary from Mr. Deshpande on the strategy going ahead. This will be followed by an interactive question-and-answer session. Before we commence, I would like to state that certain statements made on today's call could be forward-looking in nature. And a disclaimer to this effect has been included in the results presentation that was shared with you earlier and which is also available on the Stock Exchange website. I would now like to request Mr. Dahanukar to make his opening remarks. Over to you sir. Amit Dahanukar: Good morning, everyone. Happy to have you all join us on this earnings call to discuss the Q2 FY27 results. I will provide an update on the current quarter's performance, which will be followed by Ameya taking you through the updates on our strategic investments, Imperial Blue integration and guidance on future performance. Before I begin with the quarterly performance, there are a few key highlights I wanted to share. Firstly, both our flagship brands, Imperial Blue Whisky and Mansion House Brandy have registered a robust secondary volume growth of 8.5% and 7.1%, respectively, in Q2 FY27 versus Q1 FY27. This has led to 100 bps market share increase for Imperial Blue and 70 bps market share increase for TI in Prestige & Above segment on a quarter-on-quarter basis in Q2 FY27. Imperial Blue market share rose Page 1 of 12 in 17 states across India with significant market share gains in Karnataka, Andhra Pradesh, Uttarakhand, Assam and Rajasthan. We have continued to introduce Imperial Blue in newer markets by launching the brand in Kerala during October 2026. We will soon be launching the brand in Tamil Nadu as well. While these are smaller whisky markets, we are confident that our existing presence in these states will immensely benefit Imperial Blue. We have leveraged Imperial Blue’s distribution strength in Daman and Diu to re- launch Mansion House Brandy and in Uttarakhand to launch Madira Rum. We have also introduced Imperial Black in Uttar Pradesh and Meghalaya during the quarter. In Q2, our overall volumes increased by 160% on a year-on-year basis and 2% on a quarter- on-quarter basis. The quarterly growth was largely flattish on account of higher primary in Q1 FY27 in the states which had exited TSMA during Q4 FY26 and states which were planned for exit in June 2026. Now moving to financial performance, the overall NSR moderated by 0.75% to Rs. 1,174 per case for Q2 FY27 from Rs. 1,183 per case in Q1 FY27 and increased by 3.2% from Rs. 1,138 per case in Q2 FY26. On a H1 basis, the NSR grew by 4.2% from Rs. 1,131 in H1 FY26 to Rs. 1,179 in H1 FY27. The slight reduction in NSR in Q2 was on account of change in state-mix and brand-mix, however, we are confident of sustained growth in NSR going forward. The NSR growth will be driven by favourable state mix, price increases and expected new launches FY28 onwards. We witnessed a strong growth of 173% year-on-year basis to reach a net revenue of Rs. 1,035 crore during the quarter. Adjusted for subsidy, we recorded a growth of 172% to reach Rs. 1,033 crore. The ongoing geopolitical tensions have resulted in continued inflationary pressures across packaging inputs particularly glass, resulting in a meaningful increase in packaging costs during the last 2 quarters. While exiting Q2 FY27, ENA prices have also started to show an inflationary trend with rising fuel and grain costs. Consequently, gross margins were under pressure. However, as committed in Q1, we have been working consistently on our cost optimization initiatives, which have shown positive results, helping us protect our margins. Adjusted for subsidy, we have achieved a gross profit of Rs. 432 crore in Q2 FY27 and a margin of 41.8% compared to 42.1% in Q1 FY27. Excluding the impact of inflationary pressures, the margin would have been higher, closer to 44%. EBITDA stood at Rs. 148 crore for Q2 FY27, clocking a growth of 146% year-on-year and a margin of 14.3%. Adjusted for subsidy, the EBITDA grew by 143% to Rs. 146 crore and a 14.1% margin on the combined business. Excluding the impact of inflationary pressures, the margin would have been approximately 16.5%. A&P reinvestment rates increased by 61 bps in Q2 FY27 versus Q1 FY27 on the back of strong ATL and BTL execution drives ahead of the festive season. PAT adjusted for exceptional items and acquisition-related amortization stood at Rs. 68 crore for Q2 FY27, clocking a growth of 30% year-on-year and a margin of 6.6%. Adjusted for subsidy, the Page 2 of 12 PAT grew by 26% to reach Rs. 66 crore and a 6.4% margin on the combined business. Excluding the impact of inflationary pressures and subsidy, the margin would have been approximately 9%. We have incurred an exceptional expense to the tune of Rs. 11 crore during Q2 FY27, predominantly on account of TSMA fees and integration related expenses. As on 30th September 2026, our gross debt stood at Rs. 2,202 crore and net debt stood at Rs. 2,074 crore. There is a slight reduction in net debt levels as compared to June 2026. I want to reassure you that our target is to take the net debt in March 2027 to below March 2026 levels. I wanted to reiterate that our focus going forward will be divided into 4 parts: 1. Continue our journey to generate and fulfil demand for our brands to deliver double-digit volume growth over a 2–3-year period 2. Optimize packaging, processes and supply chain and reap benefits of operating leverage and economies of scale helping us achieve an EBITDA margin of 16%-18% on combined business 3. Focus on efficient capital deployment, disciplined debt management and working capital investments facilitating the reduction of Net Debt to EBITDA below 1.0x by FY29. 4. Ride on the Pan-India distribution strength of Imperial Blue and Mansion House franchises to expand the TI's luxury and premium portfolio including strategic investment brands We have consistently focused on our brand communications and have made impactful strides during the current quarter. On the proud occasion of Independence Day, we had 2 great outcomes. Firstly, Mansion House Brandy and Monarch Legacy Edition Brandy were sh [Showing first 8,000 characters — download PDF for full document]