Radico Khaitan , a leading Indian spirits manufacturer, has reported exceptional performance for the first quarter, setting new records in volumes, net sales, and profitability.

Strong Volume Growth and Premiumization

The company witnessed a remarkable 37.5% year-on-year growth in Indian Made Foreign Liquor (IMFL) volumes, reaching 9.72 million cases. This growth was primarily driven by robust demand for premium brands. The prestige and above category volumes surged by 41%, while value terms grew by an impressive 43%.

Margin Expansion and Financial Performance

Despite higher marketing expenditure, Radico Khaitan's EBITDA margin expanded from 13.0% to 15.3%. The company attributes this improvement to economies of scale and a favorable product mix. Management has raised its margin expansion guidance to 125-150 basis points annually for the next three years, aiming to reach the late teens.

New Product Launches

Radico Khaitan has strengthened its premium portfolio with two significant launches:

1. Morpheus Super Premium Whisky: This marks the company's entry into the fast-growing super premium whisky segment, addressing a gap in their portfolio.

2. The Spirit of Kashmyr: A luxury vodka aimed at competing with imported brands in the premium segment.

Performance of Existing Brands

• Royal Ranthambore: The brand, operating in the Bottled in India Scotch category, delivered exceptional 90% growth this quarter.
• Magic Moments: The flagship vodka brand posted a solid 20% volume growth.
• After Dark Whisky: The brand is on track to double its volume in the current fiscal year, having sold 1.9 million cases last year.

Market Share Gains

Radico Khaitan has significantly increased its market share in Andhra Pradesh, growing from 10% in the first half to over 28%, which is the highest in the industry.

Financial Outlook

The company is poised to deliver over 20% overall volume growth, with robust contribution from the prestige and above category. Management expects to generate Rs. 500.00 crores in revenue from luxury and semi-luxury brands.

Debt Reduction

Net debt reduced by Rs. 164.00 crores, primarily due to improved profitability and working capital reduction. The company aims to be almost debt-free by FY27.

Industry Trends and Future Outlook

Radico Khaitan's management sees a structural shift in the Indian alcoholic beverage industry towards more lifestyle-driven consumption. The company is well-positioned to capitalize on the increasing demand for premium and luxury segments, driven by rising affluence and evolving consumer preferences.

With a strong innovation pipeline and strategic focus on premiumization, Radico Khaitan remains optimistic about its growth trajectory in the coming years. The company continues to invest in brand building and expanding its presence across various price segments in the Indian spirits market.

Radico Khaitan Limited, a prominent player in the Indian spirits industry, has unveiled ambitious growth plans for the coming years, signaling confidence in its market position and operational strategies.

Volume Growth Projection

The management of Radico Khaitan has set an optimistic target for volume growth, expecting to exceed 20% for the fiscal year 2026 (FY26). This projection suggests a robust outlook for the company's product demand and market expansion strategies.

Debt Reduction Strategy

In a move that could significantly strengthen its financial position, Radico Khaitan has outlined plans to achieve a near debt-free status by fiscal year 2027 (FY27). This strategic goal indicates the company's focus on improving its balance sheet and reducing financial leverage.

Recent Financial Performance

The company recently held an earnings conference call for analysts and investors on August 1, 2025, discussing its unaudited financial results for the quarter ended June 30, 2025. The audio recording of this call has been made available on the company's website, demonstrating transparency in its communications with stakeholders.

Investor Relations and Compliance

Radico Khaitan continues to maintain open lines of communication with its investors. The company has promptly disclosed the availability of its earnings call recording, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The audio recording of the earnings conference call can be accessed through the following link: https://radicokhaitan.com/wp-content/uploads/2025/08/Q1-FY2026-Concall-Recording.mp3

These developments suggest that Radico Khaitan is positioning itself for substantial growth while simultaneously working towards financial stability. Investors and market watchers will likely keep a close eye on the company's progress towards these ambitious targets in the coming years.