Tilaknagar Industries has once again caught investors’ attention with its impressive second-quarter (Q2 FY25) results. The company’s shares rose by 11% to ₹322.75 in early trading following a stellar performance, showcasing its resilience and strategic growth in the Indian-made foreign liquor (IMFL) brandy segment. Here’s a deeper look at what’s driving Tilaknagar’s growth and if it could be a valuable addition to your portfolio.
Tilaknagar Industries Q2 FY25 Performance Highlights
- Revenue Growth: The company reported a 23.8% year-over-year (YoY) increase in revenue to ₹823.3 crore, reflecting a strong demand for its flagship brands.
- EBITDA Growth: Tilaknagar achieved its highest-ever quarterly EBITDA of ₹66 crore, marking a YoY growth of 39.1%. The EBITDA margin expanded by 422 basis points to 17.6%.
- Profit After Tax: The company’s profit after tax increased by 82% YoY, reaching ₹58 crore, driven by cost optimization and reduced finance expenses.
- Debt-Free Status: Tilaknagar Industries became net debt-free this quarter with a ₹25 crore cash reserve, a milestone that signifies its sound financial health and reduced risk.
Market Leadership in IMFL Brandy Segment
Tilaknagar Industries holds approximately 20% of the Indian market share in the IMFL brandy segment, supported by its flagship brand, Mansion House Brandy. With 29.5 lakh cases sold in Q2 FY25, it remains the largest-selling brandy in India and the second-largest globally. This market dominance provides Tilaknagar with a strong foundation for consistent revenue and brand recognition.
| Key Metric | Q2 FY25 Performance |
|---|---|
| Revenue | ₹823.3 crore (up 23.8% YoY) |
| EBITDA | ₹66 crore (up 39.1% YoY) |
| EBITDA Margin | 17.6% |
| Profit After Tax | ₹58 crore (up 82% YoY) |
| Market Share in IMFL Brandy | ~20% |
Expansion Plans and Future Outlook
Strategic Moves: Following its success with Mansion House Brandy, the company recently launched Mansion House Whisky in Assam’s semi-premium segment, expanding its product line and tapping into new market opportunities. Tilaknagar’s expansion into whisky complements its existing portfolio and is expected to boost sales volumes further.
Industry Leadership: Tilaknagar is currently the largest IMFL player in Puducherry and holds third place in Telangana and Karnataka’s premium and above (P&A) IMFL segments. This consistent growth underscores its industry leadership and potential to capture additional market share.
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Investment Potential: A Multibagger in the Making?
Over the past five years, Tilaknagar Industries has shown exceptional stock market performance, rising over 2,350% from ₹13 to ₹322 per share. Given the company’s robust Q2 results, debt-free status, and strong market presence, analysts believe it could continue to deliver multibagger returns for investors with a long-term horizon.
Is It a Buy?
Tilaknagar Industries’ financial strength, strategic expansions, and brand loyalty make it a compelling investment for growth-focused portfolios. However, potential investors should consider market risks and the competitive nature of the liquor industry before committing.
Disclaimer: This article is informational and should not be taken as financial advice. Please consult your financial advisor before making investment decisions.
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