Radico Khaitan (RADICO) Q3 24/25 earnings summary

Executive summary

• Achieved industry-leading IMFL volume growth of 15.3% year-on-year in Q3 FY25, with prestige and above-category volume up 17.7% and luxury portfolio showing strong momentum.

• Luxury and semi-luxury brands crossed INR 100 crores in Q3 and INR 250 crores in nine months, expected to surpass INR 500 crores in FY26.

• Prestige & Above brands contributed over 50% of IMFL volumes and over 72% of IMFL sales value.

• After Dark Blue Whisky joined the Millionaires Club, achieving over 1.34 million case volumes in nine months and over 100% year-over-year growth.

• Management remains focused on premiumization, global brand elevation, and long-term value creation.

Financial highlights

• Q3 FY25 revenue from operations rose 11.5% year-over-year to ₹1,294.2 Cr; nine-month revenue up 16.7% to ₹3,547.1 Cr.

• EBITDA for Q3 grew 28.8% year-over-year to ₹183.2 Cr, with a margin of 14.2%.

• Gross margin improved to 43% in Q3 FY25 from 41.8% a year ago.

• Standalone net profit for Q3 FY25 was ₹9,541.64 lakhs, up from ₹7,338.08 lakhs in Q3 FY24; consolidated net profit was ₹8,008.93 lakhs, up from ₹7,466.69 lakhs.

• Basic EPS for Q3 was ₹7.18, up 30.1% year-over-year.

Outlook and guidance

• Strong growth momentum expected to continue, with luxury and semi-luxury brands projected to cross INR 500 crores in FY26.

• Margin improvement of 100-125 bps per year targeted for the next three years, aiming for 13% margin.

• Focus on profitable growth, cash flow generation, and efficient working capital management to reduce debt.

• CapEx expected at INR 100-125 crores annually for the next 2-3 years.