Radico Khaitan Limited announced record-breaking results for the second quarter of FY27, driven by a 36% volume growth in its Prestige & Above portfolio and overall revenue of ₹1,746 crores. The company achieved a record EBITDA of ₹356 crores with a margin of 20.4%, demonstrating strong premiumization strategy and operational efficiency amidst volatile input costs.
Radico Khaitan Delivers Record Q2 FY27 Performance
Radico Khaitan Limited has reported its strongest second quarter in history for FY27, marked by record volume, revenue, and profitability. The company announced that its IMFL volume stood at over 10 million cases during the quarter, contributing to a revenue of ₹1,746 crores and an EBITDA of ₹356 crores, with an impressive EBITDA margin of 20.4%.
Premiumization Drives Growth
The company highlighted that its Prestige & Above portfolio saw a significant volume growth of 36%, outpacing the industry and contributing to a richer product mix. Key growth drivers included the performance of brands like Magic Moments in the vodka category, After Dark and 8PM Premium Black in whisky, and the luxury portfolio featuring Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, and Virasat Indian Single Malt. The structural shift towards vodka is gaining pace, with its share of IMFL reaching 6.3% in Q2.
Financial Highlights and Outlook
Dilip Banthiya, Executive Director and CFO, stated that the momentum from the first quarter was sustained, reflecting business resilience driven by premiumization and disciplined execution. The gross margin stood at 48.0%, with an EBITDA margin of 20.4%, expanding by 462 basis points year-on-year. Radico Khaitan has upgraded its Prestige & Above volume growth guidance to 30% for FY27 and remains confident in sustaining an EBITDA margin of around 20% for the year. The company also announced leadership changes with Dilip Banthiya joining the Board as Executive Director and CFO, and Saket Somani elevated to Deputy CFO.
International Expansion and Market Strategy
Internationally, Radico Khaitan has become the first Indian spirits company to be present across 4 major U.K. airports, enhancing its global travel retail presence. The company continues to focus on premiumization and product mix enhancement to navigate global volatility in raw material and packaging costs.
Questions and Answers Highlights
During the Q&A session, management addressed inquiries regarding industry scrutiny, raw material cost impacts, and pricing freedom. They reaffirmed their 20% EBITDA margin guidance for the full year, despite a negative impact of approximately ₹27 crores from packaging material costs. The company also discussed the growing trend towards white spirits like vodka, with its market share increasing significantly in India, and positive traction from new launches in the super-premium segment like Virasat Indian Single Malt and Jamun.
Management provided insights into the U.K. FTA, international market strategies, and the growth trajectory of brands like After Dark. They also detailed the sales contribution of different spirits categories, with vodka at 30% of volume, whisky at 40%-45%, and the luxury portfolio expected to grow by 25% in FY27. The company expressed confidence in its strategy to drive profitable growth and create long-term shareholder value.
Source: BSE
