Radico Khaitan , a leading Indian spirits manufacturer, has announced its financial results for the second quarter, showcasing strong growth across key metrics.

Financial Highlights

• Revenue from Operations (Net) increased by 33.8% year-over-year to ₹1,493.90 crore
• EBITDA grew by 45.4% to ₹236.10 crore, with margins expanding to 15.8% from 14.5% in the same quarter last year
• Total Comprehensive Income surged by 68.9% to ₹137.80 crore
• Earnings Per Share (EPS) rose to ₹10.38, up from ₹6.14 in the same quarter last year

Volume Growth

Radico Khaitan reported significant volume growth across its product categories:

• Total IMFL (Indian Made Foreign Liquor) volume increased by 37.8% to 9.34 million cases
• Prestige & Above category volume grew by 21.7% to 3.89 million cases
• Regular & Others category volume surged by 79.6% to 5.04 million cases

Financial Performance Analysis

The company's gross profit increased by 33.9% to ₹652.00 crore, maintaining a stable gross margin of 43.6%. The EBITDA margin expansion to 15.8% reflects improved operational efficiency and cost management.

Radico Khaitan's focus on premiumization is evident in the performance of its Prestige & Above category, which contributed 68.6% to total IMFL revenue, slightly lower than the 75.7% share in the same quarter of the previous year.

Management Commentary

Dr. Lalit Khaitan, Chairman & Managing Director of Radico Khaitan, commented on the results, stating, "I am pleased to report a stellar performance in Q2, reaffirming our commitment to value-led growth and resilience in a dynamic operating environment. Supported by a stable raw material scenario, our continued focus on premiumization, and operating leverage, we delivered strong operating margins while deepening consumer and market engagement."

Mr. Abhishek Khaitan, Managing Director, added, "Our premium-first strategy continues to deliver exceptional results, reinforcing Radico Khaitan's standing as one of India's most aspirational spirits companies. Morpheus Rare Luxury Whisky continues to strengthen its position in the super-premium whisky segment with expanding consumer reach across markets, while The Spirit of Kashmyr Vodka is now available in 7 states and is rapidly scaling its footprint across key metros and premium outlets."

Balance Sheet and Cash Flow

The company reported a reduction in net debt by ₹146.10 crore compared to March, bringing it down to ₹427.40 crore. This improvement in the balance sheet position indicates strong cash flow generation and effective debt management.

Market Position and Future Outlook

Radico Khaitan's performance underscores its strong position in the Indian spirits market, particularly in the premium segment. The company's strategic focus on premiumization and brand building has yielded positive results, with flagship brands like Morpheus and Magic Moments continuing to gain market share.

Looking ahead, the company plans to expand its premium portfolio further, with The Spirit of Kashmyr Vodka set to launch in four more states. Additionally, Radico Khaitan is poised to benefit from the ongoing shift towards premiumization in the Indian spirits landscape.

While the global trade situation has posed short-term challenges for exports, the company's robust domestic portfolio and strategic initiatives position it well for sustained growth in the coming quarters.

Corporate Actions

The Board of Directors has approved a Scheme of Amalgamation for its wholly owned subsidiary and step-down subsidiaries. This move is expected to streamline the corporate structure and bring land holdings directly into the company, potentially improving operational efficiency.

In conclusion, Radico Khaitan's Q2 results demonstrate the company's ability to capitalize on market opportunities and drive growth through a combination of volume expansion, premiumization, and operational efficiency. As the Indian spirits market continues to evolve, Radico Khaitan appears well-positioned to leverage its strong brand portfolio and strategic initiatives for future success.

Radico Khaitan Limited, a leading Indian spirits company, has announced a significant reduction in its net debt position along with robust financial results for the second quarter of fiscal year 2026.

Net Debt Reduction

The company reported a net debt reduction of Rs 146 crore since March 31, 2025. This substantial decrease in the overall debt position demonstrates Radico Khaitan's commitment to strengthening its balance sheet and improving financial flexibility.

Q2 FY2026 Financial Highlights

Radico Khaitan's Q2 FY2026 results showcase strong growth across key financial metrics:

Volume Growth

The company's volume performance was equally impressive:

• Total IMFL (Indian Made Foreign Liquor) volume increased by 37.80% to 9.34 million cases
• Prestige & Above category volume grew by 21.70% to 3.89 million cases
• Regular & Others volume surged by 79.60% to 5.04 million cases

Management Commentary

Dr. Lalit Khaitan, Chairman & Managing Director of Radico Khaitan, commented on the results: "I am pleased to report a stellar performance in Q2 FY26, reaffirming our commitment to value-led growth and resilience in a dynamic operating environment. Supported by a stable raw material scenario, our continued focus on premiumization, and operating leverage, we delivered strong operating margins while deepening consumer and market engagement."

Mr. Abhishek Khaitan, Managing Director, added: "Our premium-first strategy continues to deliver exceptional results, reinforcing Radico Khaitan's standing as one of India's most aspirational spirits companies. With a strong innovation pipeline, expanding distribution, and consistent brand investments, we are entering the next phase of accelerated, high-quality growth, both in India and across international markets."

Strategic Developments

The company's Board of Directors has approved a Scheme of Amalgamation for its wholly-owned subsidiary and step-down subsidiaries. This move aims to streamline the corporate structure and is expected to result in cost savings and administrative benefits.

Outlook

With its strong financial performance, debt reduction, and strategic initiatives, Radico Khaitan appears well-positioned to capitalize on the growing premiumization trend in the Indian spirits market. The company's focus on innovation and brand building, coupled with its improving financial position, suggests a positive outlook for future growth and market expansion.

As the Indian spirits landscape undergoes a fundamental shift towards premiumization, Radico Khaitan's strategic positioning and financial strength may enable it to lead this transformation and capture emerging opportunities in both domestic and international markets.