Radico Khaitan (RADICO) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 delivered record-high quarterly volume, net sales, and profitability, driven by strong demand for premium and luxury brands, successful new product launches in super premium whisky and luxury vodka, and robust growth in both Prestige & Above and Regular segments.

• Strategic focus on premiumization, innovation, and deeper market penetration continues to yield robust results, with luxury and semi-luxury brands achieving nearly 50% year-on-year value growth.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by statutory auditors, who issued unmodified conclusions.

• The Group's business activity is focused on Alcohol and Alcoholic Beverages, with no segmental reporting required.

Financial highlights

• Total IMFL volume reached 9.72 million cases, up 38% year-on-year, marking the highest-ever quarterly volume; standalone revenue from operations for Q1 FY26 was ₹531,352 lakhs, up from ₹426,562 lakhs in Q1 FY25.

• Prestige and above category volume grew 41%, with value growth of 43%; non-IMFL revenue increased 12% year-on-year.

• EBITDA increased 55.6% year-over-year to ₹230.7 crore; EBITDA margin improved to 15.3% from 13.0% year-on-year.

• Standalone net profit for Q1 FY26 was ₹13,334 lakhs, compared to ₹7,575 lakhs in Q1 FY25; consolidated net profit was ₹13,052 lakhs, up from ₹7,481 lakhs.

• Net debt reduced by INR 164 crores since March 2025, standing at ₹409.8 crore as of June 30, 2025.

Outlook and guidance

• Targeting over 20% overall volume growth in FY26, led by prestige and above categories.

• Margin expansion guidance increased to 125-150 basis points annually for the next three years, supported by premium brand growth and operating leverage.

• CapEx expected at INR 150-160 crores annually for the next two years, focused on brand and malt-related investments.

• Management expects continued margin expansion and net debt reduction, supported by stable raw material prices and premiumization.

• The company continues to focus on its core business and employee stock option plans, with new grants and allotments during the quarter.