Radico Khaitan earnings rose in the quarter ended September 2026 as strong growth in premium spirits volumes offset a decline in its regular liquor portfolio. The company raised its full-year premium volume growth guidance while retaining its margin target.

Key Takeaways

  • Standalone net profit rose 66.1% year on year to ₹230.9 crore, while net revenue increased 16.8%.
  • Prestige & Above volumes grew 35.8%, compared with a 9.7% decline in Regular & Others volumes.
  • Radico raised its FY27 premium volume growth guidance to 30% and continued to target an EBITDA margin of around 20%.

Radico Khaitan earnings benefit from premium mix

Net revenue from operations reached ₹1,745.1 crore in the second quarter of fiscal 2027. Gross profit rose 28.6% to ₹838.4 crore, while EBITDA increased 51% to ₹356.5 crore. The figures are on a standalone basis.

The gross margin expanded to 48% from 43.6% a year earlier, and the EBITDA margin widened to 20.4% from 15.8%. A richer product mix meant premium brands contributed a larger share of the company’s volumes and Indian-made foreign liquor revenue.

Premium volumes grow as regular sales decline

Prestige & Above volumes reached 5.28 million cases, while Regular & Others volumes fell to 4.55 million cases. Premium products accounted for 53.7% of Radico’s own volumes, up from 43.6% a year earlier. Their share of Indian-made foreign liquor revenue rose to 77.1% from 68.6%.

Radico attributed the regular-volume decline partly to a higher year-earlier base following a route-to-market change in Andhra Pradesh, as well as policy changes in Maharashtra and Karnataka.

Vodka led premium volume growth, expanding 49% to 2.96 million cases. Radico’s brands include Magic Moments vodka, 8PM Premium Black whisky, Rampur Indian Single Malt and Jaisalmer Indian Craft Gin.

Inventory build supports quarter but raises working capital

Radico said it had built up stocks to mitigate rising grain prices. The inventory supported performance during the quarter, the company said, but also increased working capital requirements.

Selling and distribution expenses rose 19.5% to ₹184.3 crore, and other operating expenses increased 14.5% to ₹230.6 crore. Interest expense declined 29.9% to ₹11.4 crore.

FY27 targets and debt position

The company raised its FY27 Prestige & Above volume growth guidance to 30% and reiterated its expectation of an EBITDA margin of around 20%. Those targets are forecasts, separate from the second-quarter results. Radico also expects advertising and sales promotion spending to remain around 6%–8% of Indian-made foreign liquor revenue.

Net debt stood at ₹175.4 crore on September 30, 2026, down ₹68.7 crore from March 31. Radico said it expects to become net debt-free in the second half of FY27.

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