Tilaknagar Industries Q2 Results | Profit falls 10% on margin pressure despite 6% revenue growth

Leading Indian-Made Foreign Liquor (IMFL) manufacturer Tilaknagar Industries Ltd on Thursday (November 13) reported a net profit of ₹52.6 crore for the quarter ended September 2025, down 9.6% from ₹58.2 crore in the same period last year.

Revenue for the quarter increased 6.2% year-on-year to ₹398.3 crore from ₹374.9 crore, indicating steady topline growth. EBITDA, however, declined 8.4% to ₹60 crore from ₹65.7 crore in Q2 FY25, while the operating margin narrowed to 15% from 17.5% in the year-ago period.

For Q2 FY26, consolidated volumes rose 16.2% year-on-year to 34.2 lakh cases, with the company recording market share gains in most key markets. Net revenue grew 6.2% to ₹398 crore from ₹374.9 crore in Q2 FY25. Adjusted for subsidy, revenue growth stood at 9.3% year-on-year. Net sales realisation (NSR) improved to ₹1,215 per case in Q2 FY26 from ₹1,193 in the previous quarter.

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Advertising and promotion (A&P) reinvestment rate, as a percentage of subsidy-adjusted net revenue, rose to 2.1% in Q2 FY26 from 0.6% a year earlier. Diluted earnings per share (EPS) for the quarter stood at ₹2.69.

For the first half of FY26, volumes grew 21% year-on-year to 66.2 lakh cases. Consolidated net revenue rose 17.4% year-on-year to ₹807 crore, while revenue growth adjusted for subsidy stood at 14.4%. EBITDA came in at ₹155 crore, translating to an EBITDA margin of 19.2%, or 15.1% on a subsidy-adjusted basis.

The A&P reinvestment rate increased to 1.7% in H1 FY26 from 0.5% in H1 FY25. PAT for the period was ₹141 crore, with a PAT margin of 13.2% after subsidy adjustment, reflecting a 106 basis points improvement year-on-year. Reported diluted EPS for the first half of FY26 stood at ₹7.21 per share.

Also Read: Tilaknagar Industries expects volume to grow in high teens in FY26

Amit Dahanukar, Chairman & Managing Director, said, "I am pleased to share that during the quarter, we gained market share across most key markets, driven by the strong performance of our existing portfolio, which continued to take share from competition and by incremental gains from the introduction of brands in new territories.

The quarter also saw the introduction of Mansion House Whisky in Odisha, Telangana and Kerala, and the launch of Monarch Legacy Edition Brandy in Hyderabad Duty Free, Odisha, Kerala and Karnataka. "

Shares of Tilaknagar Industries Ltd ended at ₹508.20, up by ₹3.00, or 0.59%, on the BSE.