Radico Khaitan , one of India's largest IMFL (Indian Made Foreign Liquor) companies, has reported robust financial results for the second quarter of fiscal year 2026, driven by strong performance in its premium brands and expansion in key markets.

Key Highlights

• Total IMFL volume grew by 37.8% year-on-year to 9.34 million cases
• Prestige & Above category recorded 21.7% volume growth and 24% value growth
• EBITDA margin expanded by 126 basis points year-on-year to 15.8%
• Net debt reduced by Rs. 146.00 crores since March 2025

Financial Performance

Brand Performance

Magic Moments Vodka maintained its strong growth trajectory with nearly 20% volume growth, achieving sales of around 2 million cases during the quarter. After Dark Whisky recorded an impressive 115% growth year-on-year in the first half, crossing 1.5 million cases. Royal Ranthambore Whisky delivered 67% growth in Q2.

Market Expansion

Radico Khaitan's market share in Andhra Pradesh increased significantly, rising from around 10% in the first half of last year to over 30% in Q2 FY26, making it the leading player in the state. This expansion has been a key driver of growth for the company.

New Product Launches

The company launched six new brands in Q2, including Morpheus Whisky and Spirit of Kashmyr variants, further strengthening its premium portfolio. Management expects to achieve Rs. 500.00 crores in revenue from the luxury and semi-luxury portfolio.

Outlook

Radico Khaitan's management has guided for a 150 basis point increase in EBITDA margin for the current fiscal year. The company remains focused on premiumization, with the Prestige & Above category now contributing 46.1% to IMFL volumes and 69.4% in value terms.

Abhishek Khaitan, Managing Director of Radico Khaitan, commented, "Our innovation-led approach, balanced portfolio, and sharp focus on premiumization continue to lay the foundation for sustainable growth and value creation. Looking ahead, we remain confident of delivering strong double-digit growth in the Prestige & Above category, enhanced profitability, and a continuous focus on cash flow generation."

The company's strategic investments, including the Sitapur distillery, are now fully operational, supporting the growth of its branded business. With a strong presence in over 100 countries and a robust domestic portfolio, Radico Khaitan is well-positioned to capitalize on evolving consumer preferences and regulatory reforms in the Indian spirits market.

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.