Tilaknagar Industries bank facility rating remains on developing watch by CRISIL

CRISIL Ratings Limited has reiterated its "Rating Watch with Developing Implications" for Tilaknagar Industries Limited's (TIL) long-term bank facilities, amounting to Rs 200 crore, as of October 17, 2025. This follows an announcement on August 1, 2025, regarding TIL's acquisition of Pernod Ricard India Pvt Ltd's Imperial Blue brand business for an enterprise value of €412.6m (Rs 4,150 crore). The acquisition is slated to be funded through a mix of equity and debt, with Rs 2,295.63 crore from a preferential issue of equity shares (Rs 549 crore) and convertible warrants (Rs 1,746 crore) already approved.

As of September 29, 2025, Rs 549 crore in equity shares and Rs 437 crore in convertible warrants have been allotted, infusing approximately Rs 986 crore of equity. The Competition Commission of India (CCI) approved the deal on October 8, 2025. CRISIL Ratings will continue to monitor the transaction's progress, including specifics on payment, financial implications of Imperial Blue, and integration strategies, with a resolution of the watch expected once regulatory approvals are complete and more clarity emerges on these aspects.

TIL's revenue increased by 2.9% from Rs 1,394 crore in fiscal 2024 to Rs 1,434 crore in fiscal 2025, with a net cash accrual to total debt ratio improving to 5.90 times in fiscal 2025. The operating margin also rose from 13.3% in fiscal 2024 to 17.8% in fiscal 2025. However, the acquisition is anticipated to moderate the company's financial risk profile due to increased leverage.