Radico Khaitan delivered a robust performance for FY2026, crossing key milestones with net revenue exceeding INR 6,000 crores and EBITDA surpassing INR 1,000 crores. The company’s focus on its Prestige & Above segment and luxury portfolio continues to drive sustainable growth, with significant volume increases in its core brands. Management remains confident in maintaining its growth momentum and expanding margins by 125 basis points in the upcoming fiscal year.
Financial Highlights and Milestones
During FY2026, Radico Khaitan achieved significant financial success, characterized by disciplined execution and a premium-led portfolio mix. The company successfully crossed the INR 6,000 crore mark in net revenue and surpassed INR 1,000 crores in EBITDA. Profitability saw a strong boost during Q4 FY26, with EBITDA margins expanding by 565 basis points year-on-year to reach 19%, the highest ever reported by the company.
Strong Growth in Premium and Luxury Segments
The Prestige & Above segment continues to be the primary engine for growth. The luxury portfolio generated INR 475 crores in sales value, with the company projecting a 25% value growth in this category for FY2027. Core brands performed exceptionally well, with Magic Moments Vodka recording 21% annual volume growth to reach 8.6 million cases, and After Dark Whisky delivering over 60% growth to cross 3.1 million cases. Furthermore, Royal Ranthambore Whisky saw an outstanding 50% growth during the year.
Future Outlook and Strategic Focus
Looking ahead, the company is prioritizing the national expansion of its luxury brands, including Rampur 1943 Virasat Indian Single Malt and The Spirit of Kashmyr. Management is confident in maintaining this trajectory, targeting a 20% volume growth for the Prestige & Above portfolio in FY2027. With net debt reduced by INR 329 crores throughout the year, the company is on track to become debt-free in the first half of FY2027. The company also confirmed a shareholder-friendly dividend policy with a minimum payout of 20% of profit after tax.
Operational Efficiency
Radico Khaitan continues to optimize its operations, with 90% of power and fuel at its Sitapur and Rampur distilleries now driven by biofuel. The company remains committed to outsourcing 60% to 65% of its bottling requirements, ensuring that capacity is not a constraint for future growth. Through a focus on brand advocacy and distribution expansion, particularly in the on-trade segment, the management team believes it is well-positioned to navigate near-term global uncertainties and sustain its profitable growth journey.
Source: BSE
