Radico Khaitan delivered a standout performance in the October-December quarter (Q3 FY26), achieving record quarterly volumes while United Spirits faced headwinds from policy changes in Maharashtra. The contrasting performances highlight the divergent trajectories of two major players in India's alcoholic beverage market.

Record Performance by Radico Khaitan

Radico Khaitan posted exceptional results for Q3 FY26, demonstrating strong execution of its premiumisation strategy across key metrics:

The company's strong performance stems from effective execution of its premiumisation strategy and stronger sales growth compared to larger peers. Radico already derives approximately 65-70% of its portfolio from Prestige & Above brands, providing substantial pricing power in the market.

United Spirits Faces Maharashtra Challenges

United Spirits experienced a more challenging quarter, primarily impacted by adverse policy changes in Maharashtra:

Despite volume declines, United Spirits maintained revenue growth through strong premium portfolio performance and improved realisations. The company's portfolio is even more premiumised than Radico's, with nearly 90% in the Prestige & Above segment.

Maharashtra Policy Impact

The Maharashtra government implemented significant policy changes that particularly affected United Spirits due to its higher exposure to the state:

• Excise Duty Hike: Steep increases pushed Indian Made Foreign Liquor prices up by 30-50%
• Price Adjustments: Companies raised prices by 30-35% in response
• Maharashtra Made Liquor (MML): Introduction of lower-priced category produced and sold within the state
• Industry Response: Legal challenges over fair competition concerns

These changes forced consumers to consider cheaper alternatives and created revenue pressure for established players.

Market Segmentation and Pricing

The Indian alcoholic beverage market operates across four distinct price segments:

Analyst Outlook and Stock Performance

Analyst sentiment remains positive for both companies, with expectations of continued premiumisation trends driving long-term growth:

Radico Khaitan: 21 'buy' calls, 2 'hold' ratings, and 1 'sell' recommendation. Shares closed 5.4% higher at ₹2,986.50 on Thursday.

United Spirits: 23 'buy' recommendations out of 30 brokerages, with 3 'hold' and 4 'sell' calls. Stock rose 1.5% to close at ₹1,338.95.

Analysts project Radico Khaitan to deliver 30-35% earnings growth for FY27, while United Spirits is expected to achieve near-15% growth over the same period. The potential UK-India Free Trade Agreement remains a key catalyst for United Spirits, with expectations of improved Scotch pricing providing revenue and margin uplift from Q2 FY27.

Future Growth Drivers

Both companies are positioned to benefit from India's ongoing premiumisation trend, with multiple growth catalysts identified:

• Product Launches: Radico has rolled out 4-6 new products in FY26, planning expansion across more states
• Geographic Expansion: Wider distribution networks supporting premium brand traction
• Policy Developments: Delhi policy and IPL outcomes flagged as external triggers
• Trade Agreements: UK-India FTA potential for margin improvement

The contrasting Q3 performances reflect different market exposures and policy impacts, but both companies remain well-positioned to capitalise on India's evolving alcoholic beverage consumption patterns.

Radico Khaitan has announced robust financial results for its third quarter, demonstrating strong operational performance with a significant jump in profitability. The alcoholic beverages company reported consolidated net profit of ₹155.00 crores, marking a substantial improvement from the previous year's corresponding period.

Strong Profit Growth in Q3

The company's financial performance showed remarkable improvement during the quarter, with year-on-year growth reaching impressive levels. The consolidated net profit figures reflect the company's enhanced operational efficiency and market positioning.

Operational Excellence Drives Results

The 62.3% year-on-year increase in consolidated net profit demonstrates Radico Khaitan's ability to effectively manage its business operations and capitalize on market opportunities. This substantial growth in profitability indicates improved margins and operational leverage across the company's business segments.

Financial Performance Analysis

The third quarter results showcase the company's strengthened financial position, with net profit rising from ₹95.50 crores in the corresponding quarter of the previous year to ₹155.00 crores in the current period. This performance reflects the company's strategic initiatives and market execution capabilities.

The strong profit growth positions Radico Khaitan favorably within the alcoholic beverages sector, highlighting its operational resilience and business momentum during the quarter.