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.

Radico Khaitan , a leading Indian spirits manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Revenue and Profitability Surge

The company's revenue from operations saw a substantial increase of 29.6% year-over-year, rising to ₹5,056.72 crore in Q2 FY26 from ₹3,906.59 crore in the same period last year. This impressive top-line growth was accompanied by a remarkable improvement in profitability:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a significant increase of 46% to ₹238.00 crore, up from ₹163.00 crore in Q2 FY25. This growth outpaced the revenue increase, indicating improved operational efficiency.

Margin Improvement

Radico Khaitan's EBITDA margin expanded by 52 basis points to 4.70% in Q2 FY26, compared to 4.18% in the corresponding quarter of the previous year. This margin expansion reflects the company's ability to manage costs effectively while driving revenue growth.

Bottom-line Performance

The company's consolidated net profit witnessed a substantial jump of 73.7%, reaching ₹140.00 crore in Q2 FY26, compared to ₹80.60 crore in Q2 FY25. This sharp increase in net profit underscores Radico Khaitan's strong financial performance and effective management of expenses.

Strategic Initiatives

In a significant corporate development, Radico Khaitan's Board of Directors has approved a merger plan with its fully owned subsidiaries. This strategic move is aimed at streamlining the company's legal structure and reducing operational costs. The merger plan includes Radico Spiritzs India Private Limited and seven other step-down subsidiaries.

Management Commentary

Abhishek Khaitan, Managing Director of Radico Khaitan, commented on the results, stating, "Our robust quarterly performance reflects the strength of our brand portfolio and operational excellence. The significant growth in revenue and profitability demonstrates our ability to capitalize on market opportunities while maintaining cost efficiency."

Outlook

The strong Q2 FY26 results position Radico Khaitan favorably in the competitive Indian spirits market. The company's focus on operational efficiency, coupled with its strategic initiatives like the proposed merger, may contribute to sustained growth and improved shareholder value in the coming quarters.

Investors and market analysts will be keenly watching Radico Khaitan's performance in the subsequent quarters to assess the consistency of its growth trajectory and the impact of its strategic decisions on long-term value creation.