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75% of Imperial Blue Volumes Captured, Balance by Q4FY27E

TLNGR, driven by the first full quarter of Imperial Blue (IB) consolidation and stable performance across its legacy brands, delivered Q4FY26 net revenue of INR 9.5 Bn (+148% YoY). IB volumes came in at 4.6 Mn cases, volume growth was supported by momentum in the P&A portfolio. EBITDA margin moderated to 16.3% due to integration-related cost, investments in distribution infrastructure and a higher operating cost base, following the acquisition. In our model, we have also accounted for a total of INR 110 Mn of TSMA expense for FY27E due to transition. We cut our FY27E revenue estimate by ~16% as we assume that TLNGR will be able to fully transition by Q4FY28E only. View and Valuation We revise our forecast downwards for both, FY27E and FY28E, as we account for transitional impact to continue in the near-term. We now bake in Revenue / EBITDA / Adj. PAT CAGR of 34.0% / 48.3% / 24.2% over FY26–FY29E, respectively. We cut our TP to INR 520 using the DCF approach, our TP implies a PE of 37x on FY28E fully diluted EPS of INR 13.9. Given an upside of 14.3%, we assign an “ADD” rating to the stock.

View and Valuation

We revise our forecast downwards for both, FY27E and FY28E, as we account for transitional impact to continue in the near-term. We now bake in Revenue / EBITDA / Adj. PAT CAGR of 34.0% / 48.3% / 24.2% over FY26–FY29E, respectively. We cut our TP to INR 520 using the DCF approach, our TP implies a PE of 37x on FY28E fully diluted EPS of INR 13.9. Given an upside of 14.3%, we assign an “ADD” rating to the stock.

Imperial Blue volumes kick in for a full quarter

* TLNGR’s volumes (ex-Imperial Blue) remained flat YoY to 3.4 Mn cases for Q4FY26. Imperial Blue volumes came in at 4.6 Mn cases for Q4FY26 thus taking TLNGR’s total combined volume to 8 Mn cases * NSR for the combined business declined 5% QoQ to INR 1,177

* Net revenue stood at INR 9,495 Mn; however, in this quarter, TLNGR received a subsidy of INR 85 Mn

* Gross margin remained stable YoY; however, EBITDA margin de-grew by 493 bps YoY at 15.5%, adjusted for subsidy

* TLNGR reported a loss of INR 150 Mn due to one-time acquisition-related exceptional expenses. Adjusting for these expenses, PAT came in at INR 476 Mn (INR 391 Mn ex-subsidy) in Q4FY26

Integration 75% Complete, 100% Imperial Blue Volume Capture by Q4FY27E

Three states are expected to continue in the temporary Transaction Services and Manufacturing Agreement (TSMA) for at least another four quarters. This has delayed revenues for about a year. We continue to believe that TLNGR will benefit from its newly acquired nationwide supply chain across both the Imperial Blue and existing portfolios, supporting revenue growth to approximately INR 5.0 Bn by FY28E. Further upside is anticipated from upward revision in margin guidance largely driven by strategic initiatives in packaging, bottling and supplychain optimisation, which are expected to support margin expansion of 133 bps over FY27E–FY29E. In this quarter, TLNGR also received approval for the sixfold capacity expansion at its Prag Distillery in Andhra Pradesh, enhancing backward integration gains and supply security.

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