Tilaknagar Industries Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Tilaknagar Industries' FY2025-26 accounts carry a qualified opinion for the seventh consecutive year, all on the same un-impaired ENA plant, while the acquisition of Imperial Blue added goodwill of ₹9,496.55 lacs and acquisition-related costs of ₹22,006.72 lacs as Exceptional Items in FY2025-26. The record shows a decade of failed subsidiaries, related-party write-offs, and promoter-entrenched governance, with public institutional shareholders repeatedly voting against promoter-linked resolutions. The core risk sits in the idle plant qualification and the back-loaded acquisition debt, with the promoter warrant conversion and deferred consideration ahead.

Key findings

  1. Auditor has qualified every annual report from FY2020 through FY2026 on the same un-impaired ENA plant Critical - The standalone audit opinion for FY2025-26 is qualified because no impairment assessment was done on one ENA plant not in operation, a qualification appearing for the 11th time. The consolidated opinion for FY2025-26 is qualified on the same matter, with the auditor stating it "may have an adverse effect on the functioning of the Group". The FY2021-22 opinion carried three qualifications, including no impairment provision for equity investments in Prag Distillery and PunjabExpo Breweries despite NCLT liquidation and negative net worth.
  2. The auditor qualified the FY2025-26 opinion on the ENA plant impairment test Major - The FY2025-26 consolidated opinion is qualified because the Holding Company did not carry out an impairment assessment of one ENA plant as required by Ind AS 36. Management states the grain distillery plant is not in operation, expects to restart it post capital expenditure, and believes no impairment exists. The Imperial Blue acquisition added goodwill of ₹9,496.55 lacs and acquisition-related costs of ₹22,006.72 lacs as Exceptional Items in FY2025-26.
  3. Tilaknagar Industries repeatedly funded related-party subsidiaries that failed, writing off over ₹136 crore in loans and advances Major - Tilaknagar Industries impaired advances with Prag Distillery for ₹9,761.20 lacs in FY2022-23, up from ₹9,164.38 lacs in FY2021-22. It impaired loans and advances with PunjabExpo Breweries for ₹3,886.54 lacs in FY2022-23, against NIL in the prior year. The entire loans and advances of both subsidiaries were written off during FY2023-24.
  4. A decade-long pattern of loss-making, capital-eroded and liquidated subsidiaries has been repeatedly absorbed, revived or written off inside the group Major - The group's consolidated net worth was negative at ₹5,571.84 lacs as at March 31, 2021. Prag Distillery was ordered into liquidation by NCLT on July 26, 2018, yet its accounts were prepared on a going concern basis with no impairment of the ₹1,543.35 lacs equity investment. Four wholly owned subsidiaries with no activities were amalgamated into Tilaknagar under an NCLT order dated May 17, 2023.
  5. Promoter-family control is entrenched through spouse directorships, rising guaranteed remuneration, and repeated preferential warrant allotments Major - Mr. Amit Dahanukar and Mrs. Shivani Amit Dahanukar, spouse, have simultaneously held board positions since at least FY2019-20. Public institutional shareholders voted 52.8027% against ESOP 2025 implementation and 82.8841% against its extension to group company employees. As on March 31, 2026, 70,70,000 convertible warrants issued to promoters were pending conversion, with ₹20,255.55 lacs outstanding.
  6. Reported profits across the decade have been repeatedly shaped by large one-time write-backs and write-offs Major - In FY2019-20, the company wrote back ₹45,518.35 lacs from one-time settlements with Bank of India, State Bank of India and IDBI Ltd.. In FY2022-23, EARC waived balance debt of ₹12,662.70 lacs, written back under exceptional items. Deferred tax assets were not created on carried-forward business losses and unabsorbed depreciation of ₹23,329.07 lacs as on March 31, 2020, rising to ₹33,319.45 lacs as on March 31, 2026.
  7. Revenue is heavily concentrated in three state-controlled customers Major - Revenue of ₹3,73,276 lacs in FY2025-26 was derived from three external customers each contributing more than 10% of total revenue. Prag Distillery held unsecured overdue trade receivables of ₹586.55 lacs from Andhra Pradesh Beverage Corporation Ltd that were long overdue and doubtful of recovery with no provision made, as reported in the consolidated auditor's report for FY2020-21. The same receivable was flagged again in FY2021-22.

What to watch

Bottom line: The record is clean on cash conversion and disclosed, but the risk sits in one place: the idle ENA plant qualification that has appeared for the 11th time, and the back-loaded acquisition debt that swung the company to a state where interest coverage fell to 0.8x. The promoter warrant conversion and the deferred consideration are the next events to watch.