Shares of Tilaknagar Industries rose 14% to hit a 52-week high of Rs 157.15 on the BSE in intraday trade on Thursday. The stock, which is trading at its highest level since 2010, has gained ground over the past two days and surged 17% after the brewery and distillery company reported strong earnings for the January-March quarter (Q4FY23).

It has risen 37% over the past month, compared with a 3.2% gain for the S&P BSE Sensex.

The stock was up 13% at Rs 155 at 1:13 pm, compared with a 0.13% gain in the benchmark index. The average trading volume over the counter jumped more than six-fold today. A total of 3.95 million shares changed hands on the NSE and BSE.

In Q4FY23, Tilaknagar Industries’ profit after tax (PAT) more than doubled to Rs 326.9 crore on strong volume growth. The company posted an after-tax profit of Rs 10.03 crore in Q4FY22. Revenue rose 18% quarter-on-quarter and 48% year-on-year to Rs 3.57 billion.

Reported gross margin contracted 409 basis points to 44.7%. However, reported EBITDA margin rose 147 basis points to 12.2%.

Gross margin was impacted in the quarter due to the quarter-over-quarter impact of glass price increases, which occurred in the middle of Q3FY23, as well as the regional mix. Despite the decline in gross margin, the company was able to maintain its EBITDA margin through several cost optimisation measures and improved productivity, the company said.

Management said that the company’s Mansion House Flandy range of flavoured brandies has seen strong growth; it added that Flandy is currently only available in Telangana and Puducherry and will soon be available in other regions.

Tilaknagar Industries is principally engaged in manufacturing and selling Indian Made Foreign Liquor (IMFL) and related products. The company is the manufacturer of India’s largest-selling premium brandy, Mansion House Brandy. It has more than 15 brands, covering brandy, whiskey, gin, rum and vodka.

The consumption of IMFL in India continues to rise due to increasing urbanisation. The acceptance of alcoholic beverage consumption in urban areas is profound. Rising income has led to increasing bar and cocktail culture adoption in urban areas, which has also increased the demand for alcoholic beverages. Additionally, more than 10 million people join the eligible drinking population each year, making India potentially one of the fastest-growing alcohol markets, the company said.