Radico Khaitan (RADICO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 marked a significant operational turnaround, with 20.7% year-over-year net revenue growth and resilience despite sector-wide challenges from inflation and commodity volatility.

• Prestige and above category volume grew 12.6% year-over-year, now contributing 53.2% of IMFL volumes and 75.7% of IMFL sales value, reflecting ongoing premiumization.

• EBITDA increased 34.7% year-over-year to ₹162.4 Cr, with margin improvement to 14.5%.

• New luxury products and campaigns were launched, expanding the premium portfolio and international presence.

• Unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2024, were approved by the Board and reviewed by statutory auditors with an unmodified conclusion.

Financial highlights

• Q2 FY2025 net revenue from operations was ₹1,116.3 Cr (+20.7% YoY); H1 FY2025: ₹2,252.8 Cr (+19.9% YoY).

• IMFL volume reached 6.78 million cases, up 2.5% year-over-year; prestige and above category volume grew 12.6%.

• Gross margin for Q2 was 43.6%, up from 41% in Q1 FY25; EBITDA margin expanded by 250 basis points year-over-year to 14.5%.

• Standalone net profit for Q2 FY25 was ₹8,162.90 lakhs, up from ₹6,139.11 lakhs in Q2 FY24; consolidated net profit for Q2 FY25 was ₹8,008.93 lakhs, up from ₹6,433.40 lakhs in Q2 FY24.

• Basic EPS for Q2: ₹6.14 (+32.8% YoY); consolidated EPS for Q2 FY25 was ₹6.03, up from ₹4.85 in Q2 FY24.

Outlook and guidance

• Expectation of continued margin improvement, with EBITDA margin targeted to increase by 100–125 basis points annually, aiming for late teens in three years.

• Management expects continued double-digit premium volume growth and consistent, profitable performance as input cost pressures ease.

• Premiumization and luxury segment growth expected to drive profitability and volume.

• Regular category volumes anticipated to return to mid-single digit growth as state-specific disruptions ease.

• Anticipates improvement in raw material cost trends from Q3 FY2025 onwards.