However, revenue from operations (excluding excise duty) jumped 165.54% to Rs 1,046.03 crore in Q1 FY27 as against Rs 393.92 crore in Q1 FY26.

Profit before tax (PBT) declined 64.46% year on year (YoY) to Rs 31.49 crore in Q1 FY27.

EBITDA stood at Rs 169 crore in Q1 FY27, registering a growth of 78.8%, compared with Rs 94 crore in Q1 FY26. EBITDA margin was at 16.1% in Q1 FY27 as against 24% in Q1 FY26.

Amit Dahanukar, Chairman & Managing Director, said, 'The company made significant progress in integrating the IB business during Q1 FY27, with around 90% of operations transitioned out of the Transition Services & Manufacturing Agreement (TSMA). Only one state remains to be completed, and exceptional transition-related costs are expected to decline significantly over the rest of FY27.

He said volumes remained resilient despite temporary disruptions caused by the TSMA exit in Odisha, Punjab, Uttarakhand and Karnataka, as well as state elections in Assam and West Bengal. Total volumes rose 9% quarter-on-quarter, led by an 18% sequential growth in the IB portfolio. MHB volumes reached 2.6 million cases, up over 7% year-on-year and more than 1% quarter-on-quarter despite seasonal softness. IB also expanded its market share by around 150 basis points sequentially, driven by strong gains across North, West and South India. The brand crossed 2 million cases in both May and June, supporting the company's expectation of delivering double-digit volume growth for IB in FY27.

On margins, Dahanukar said higher packaging costs, particularly glass, weighed on gross margins during the quarter amid geopolitical-driven inflation. However, lower Extra Neutral Alcohol (ENA) prices partly offset the impact. He said the company remains confident of improving on the 15.5% EBITDA margin achieved in Q4 FY26 through cost optimisation, manufacturing efficiencies and supply chain improvements.

Commenting on the regulatory environment, he said the India-UK Free Trade Agreement, which came into effect in mid-July, is expected to reduce Scotch import costs from Q3 FY27. He also highlighted favourable excise policy reforms in Karnataka, a key market for both IB and MHB, which are supporting category growth. Looking ahead, Dahanukar said that with the IB integration largely complete, the company will focus on expanding its luxury and super-premium portfolio while leveraging IB's distribution network to launch new premium products, supporting long-term growth'.

Tilaknagar Industries (TI) is one of India's leading alcoholic beverage (alcobev) companies. It is engaged in the business of manufacturing and selling Indian-made foreign liquor and its related products.

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