Radico Khaitan after Q1FY26 Results Says Cheers to High Spirit

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Strong performance driven by premiumisation strategy, new product launches, and robust consumer demand; company trims net debt by ₹164 crore.

By S JHA

MUMBAI, August 1, 2025 —Radico Khaitan Limited, one of India’s leading spirits companies, reported a stellar performance in Q1FY26, achieving its highest-ever quarterly revenue, profitability, and volumes. Gains were led by continued success in its premiumization strategy and recent product launches.

The company announced that revenues surged 33% year-on-year to ₹1,506 crore, while EBITDA grew by 56% to ₹231 crore, and net profit (PAT) rose 75% to ₹133 crore. Pre-tax profit (PBT) stood at ₹178 crore, also up 75% compared to the same quarter last year.

Radico also made significant headway in deleveraging, bringing down its net debt by ₹164 crore to ₹410 crore as of June 2025.

Radico’s performance was driven by a 37.5% increase in total IMFL (Indian Made Foreign Liquor) volumes, reaching 9.72 million cases. Notably, the Prestige & Above segment, which includes its premium offerings, grew 40.8% YoY to 3.84 million cases, while the Regular and Others category surged 52.1% to 5.42 million cases.

Chairman and Managing Director Lalit Khaitan said, “We delivered a standout performance in Q1 FY26, continuing our premiumization journey. This performance reaffirms our strategic direction and ability to create long-term value.”

Managing Director Abhishek Khaitan added, “FY26 marks a transformative phase for Radico, as we expand into the super-premium segment. The launch of Morpheus Super Premium Whisky and Spirit of Kashmir vodka positions us well for the next growth cycle.”

Two major product launches—Morpheus Super Premium Whisky and Spirit of Kashmir Luxury Vodka—have played a pivotal role in Radico’s brand momentum. Early consumer feedback has been highly positive, especially for Morpheus, where Radico previously had no representation.

Other highlights include:

Sangam Whisky, available in 13 states, has seen strong traction and will expand further.
After Dark Whisky volumes doubled to 1.9 million cases, and Radico aims to expand it to 24 states within six months.
Revenue from Luxury and Semi-Luxury brands is expected to touch ₹500 crore in FY26 (from ₹335–364 crore in FY25).

Operational and Financial Highlights

Gross Margin: 43%, up from 41% in Q1 FY25
EBITDA Margin: 15.3% (vs. 13% in Q1 FY25)
Debt Levels: Net debt reduced by ₹164 crore since March 2025
Non-IMFL Revenue: Grew 12% YoY (bulk spirits, alcohols)

Radico also maintained a marketing spend of 7-8% of turnover, focusing on digital campaigns, visibility, and cultural targeting across regions.

Outlook & Guidance

Radico Khaitan projects over 20% volume growth for FY26, driven by the Prestige & Above segment, while aiming to become virtually debt-free by FY27. It has also announced plans to return capital to shareholders, supported by sustained profitability.

Management highlighted strong prospects in states like Maharashtra, Uttar Pradesh, and Andhra Pradesh, where excise policies remain favourable. The company also expects CAPEX of ₹150–160 crore over the next two years for capacity and bottling expansions.

With sharp financial performance, aggressive premium brand rollouts, and a focus on consumer trends, Radico Khaitan has firmly established itself as a frontrunner in India’s evolving alcoholic beverage industry. Its record-setting Q1 results reinforce confidence in its strategy and growth potential for the coming quarters.

Shares of Radico Khaitan gained almost 5% on Friday, closing at ₹2875. The stock has given a return of over 65% in past one year. The stock is closing on its 52-week high of ₹2940.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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