Radico Khaitan Limited has communicated the tax deduction requirements for the proposed dividend of ₹9 per share for the financial year 2025-2026. The Board of Directors recommended this dividend at a meeting held on May 6, 2026, subject to the approval of shareholders at the Annual General Meeting scheduled for August 7, 2026. The company will deduct tax at source (TDS) at the time of payment in accordance with the Income Tax Act 2025 and Income Tax Rules 2026.

The dividend will be paid to members whose names appear in the Register of Members or in the records of the Depositories as Beneficial Owners on the close of business hours on Friday, July 24, 2026. The applicable TDS rate varies based on the residential status and category of the shareholder, as well as the submission of requisite declarations and documents.

For resident individual shareholders, the TDS rate is set at 10% if the aggregate dividend during the Tax Year 2026-27 exceeds ₹10,000, provided a valid Permanent Account Number (PAN) is registered. No tax will be deducted if the aggregate dividend does not exceed ₹10,000. A higher rate of 20% applies if the shareholder does not possess a valid PAN or if the PAN is not linked with Aadhaar. Shareholders may submit Form 121 to claim a nil rate, subject to eligibility conditions.

Resident shareholders other than individuals, such as insurance companies and mutual funds, are eligible for a nil TDS rate upon furnishing specific self-declarations and supporting documents, including proof of registration with regulatory bodies like the Insurance Regulatory and Development Authority (IRDA) or the Securities and Exchange Board of India (SEBI). Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, face a standard TDS rate of 20% plus applicable surcharge and cess, unless they provide a valid Tax Residency Certificate (TRC) and other documentation to claim benefits under a Double Tax Avoidance Agreement (DTAA).

The company has emphasized that it is under no obligation to consider forms or declarations submitted after the deadline or if the documents are incomplete. All necessary documents must be uploaded on the Registrar and Transfer Agent's website by July 24, 2026. Additionally, the company noted that dividend payments will be made only through electronic mode, and physical dividend warrants have been discontinued. Members holding shares in physical form must ensure their KYC details are updated to receive the dividend.

Tax Deduction Rates for Resident Individuals

Key Dates and Deadlines

Citi has maintained a positive stance on radico khaitan , underpinned by a confluence of regulatory improvements, brand momentum, and margin expansion prospects. The brokerage's constructive view is anchored in several operational and structural developments across the company's key markets and product portfolio.

Regulatory Environment Supporting Premiumisation

A key pillar of Citi's positive outlook is the improving state regulatory environment across multiple markets. The brokerage specifically highlights developments in Uttar Pradesh, Karnataka, Andhra Pradesh, and Rajasthan as creating a more favourable backdrop for premiumisation. These regulatory shifts are seen as enabling Radico Khaitan to accelerate its strategic push into higher-value product segments.

Premium Brands and White Spirits Drive Growth

Citi points to strong growth from premium brands and white spirits as a significant growth driver for the company. The brokerage also notes meaningful traction in new product launches, the on-trade channel, and the vodka segment, indicating broad-based momentum across the portfolio. These factors collectively reflect the company's efforts to deepen its presence in premium and fast-growing categories.

Key Growth and Margin Drivers at a Glance

The following table summarises the key factors highlighted by Citi in support of its positive view on Radico Khaitan:

Margin Expansion Outlook

Beyond top-line growth, Citi also identifies a pathway for further margin expansion at Radico Khaitan. The brokerage attributes this potential to a more favourable product mix, improvement in gross margins, and the stability of raw material costs. Together, these elements are expected to support profitability as the company continues to shift its portfolio towards premium offerings.