Radico Khaitan earnings for the second quarter of fiscal 2027 included revenue of ₹1,746 crore and an EBITDA margin of 20.4%, as the Indian spirits company raised its full-year premium portfolio volume growth guidance to 30%.

Key Takeaways

  • Prestige & Above volumes rose 36% from a year earlier to a record 5.28 million cases.
  • Management maintained its expectation of an EBITDA margin of around 20% for fiscal 2027.
  • Raw material and packaging inflation had an approximately ₹27 crore impact in the quarter.

Radico Khaitan earnings and premium volumes

The company reported quarterly EBITDA of ₹356 crore and Indian-made foreign liquor volumes of more than 10 million cases. Its gross margin was 48%, up 440 basis points from a year earlier, while its EBITDA margin expanded by 462 basis points.

Managing Director Abhishek Khaitan attributed premium portfolio growth partly to a shift toward white spirits, particularly vodka. Radico Khaitan’s portfolio of spirits brands includes Magic Moments Vodka and After Dark Whisky.

The regular segment moved in the opposite direction, with volumes falling 15% year on year. CFO Dilip Banthiya said the comparison reflected a high base associated with route-to-market changes in Andhra Pradesh and policy changes in Maharashtra and Karnataka.

Full-year guidance and cost pressures

The 30% growth forecast for Prestige & Above volumes is management guidance for fiscal 2027, not a completed result. The company also maintained its guidance for an EBITDA margin of around 20% and confirmed a target of 25% value growth for its luxury portfolio.

Higher grain and packaging costs weighed on the quarter. Banthiya expects grain prices to stabilize with the new crop season from November, although he said packaging costs remain volatile. He also said the industry would approach state governments for price increases starting in November.

Exports and Scotch import review

President of International Business Sanjeev Banga said export shipments had rebounded after an initial impact from geopolitical tensions in West Asia. Higher freight rates remain a challenge, although customers are absorbing part of the added cost.

Banthiya said the Directorate of Revenue Intelligence was studying bulk Scotch imports as an industry-wide issue. He said Radico had not changed the classification codes or descriptions for its imports and was confident its actions complied with current laws; the company did not speculate on the investigation’s outcome.

Next milestone

The industry plans to approach state governments for price increases starting in November.

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