Multibagger Tilaknagar Industries shares rise 11% after strong Q2 earnings

Stock Market Today: Shares of Tilaknagar Industries surged 11% to ₹322.75 apiece in early morning trade on Tuesday, November 5, following the company’s impressive results for the September quarter and its achievement of net debt-free status.

The company reported revenue of ₹823.3 crore for the second quarter of FY25 (Q2 FY25), reflecting a quarter-over-quarter (QoQ) improvement of 9.7% and a year-over-year (YoY) increase of 23.8%. It achieved its highest-ever quarterly EBITDA of ₹66 crore in Q2, marking a YoY growth of 39.1%.

The EBITDA margin expanded by 422 basis points to 17.6%. Profit after tax rose to ₹58 crore, representing an 82% YoY increase, driven by reduced finance costs.

During the quarter, the company became net debt-free with net cash of ₹25 crore. The company stands as a leader in the Indian-made foreign liquor (IMFL) brandy segment, which contributes to 93% of its total volumes. It has secured approximately 20% of the market share in this segment, as per the analysts.

Its flagship brandy, Mansion House Brandy, holds the distinction of being the largest-selling brand in India and the second-largest globally. During the September quarter, the company sold 29.5 lakh cases, marking the second-highest quarterly volume jump.

During the quarter, it launched Mansion House Whisky in Assam in the semi-premium segment. The company continues to hold its position as the third-largest player in the P&A IMFL segment in Telangana and Karnataka for Q2 FY25, while maintaining its status as the largest IMFL player in Puducherry, according to the company's Q2 earnings filing.

"Our margins expanded on the back of superior brand mix as well as cost optimisation initiatives. All this despite subdued volume growth on account of transitioning of RTM in our key state of Andhra Pradesh (“AP”) in Q2," said Amit Dahanukar, Chairman & Managing Director.

“With retail going private in Andhra Pradesh from mid-October onwards, we expect to continue with our industry-beating growth trajectory, achieved through a combination of doubling down on our market share gains from our brandy portfolio as well as new product launches across categories,” Dahanukar added.

Stock up over 2,350% in 5 years

The company has rewarded their shareholders handsomely in recent years as the stock has been on a continued upward trajectory. 

Over the past five years, the company's shares have surged from ₹13 apiece to the current level of ₹322, marking an impressive gain of 2,376%.

Notably, in September, the stock recorded a fresh all-time high of ₹330 apiece.

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