Radico Khaitan (RADICO) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly performance with IMFL volumes of 9.75 million cases, net revenue of ₹1,547 crores, and EBITDA of ₹265 crores in Q3 FY26, driven by premiumization and strong execution.

• Prestige & Above segment volume grew 25.9% year-over-year, with total IMFL volume up 16.7%.

• Margin expansion and improved return ratios supported by stable raw material costs and enhanced operating leverage.

• Premium and luxury portfolio, including new launches like Rampur 1943 Virasat Indian Single Malt, led growth and brand equity, with strong traction in both domestic and export markets.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board and reviewed by statutory auditors with an unmodified conclusion.

Financial highlights

• Revenue from operations (net) increased 19.5% year-over-year to ₹1,546.7 crore; gross profit rose 29.2% to ₹719.4 crore; EBITDA up 44.9% to ₹265.4 crore.

• Standalone revenue from operations for Q3 FY26 was ₹542,384 lakhs, up from ₹444,090 lakhs in Q3 FY25.

• Net debt reduced by ₹208.5 crore since March 2025, standing at ₹365.0 crore as of December 31, 2025.

• Gross margin expanded to 46.9%, up 350 bps year-on-year and 290 bps sequentially; EBITDA margin rose 300 bps year-on-year to 17.2%.

• Total comprehensive income grew 61.1% to ₹153.7 crore, including an exceptional charge of ₹9.56 crore due to the New Labour Code.

Outlook and guidance

• Management expects continued margin support from stable raw material prices and ongoing premiumization, targeting further margin improvement of 125 bps annually over the next two years.

• Strategic focus on scaling luxury Indian spirit brands globally and sustaining long-term growth.

• Marketing investments to remain at 6–8% of IMFL revenues to drive sales momentum.

• The company continues to monitor the impact of new labour codes and government clarifications, with further updates to be provided as necessary.

• Confident in sustaining momentum and delivering consistent, profitable growth in the coming quarters.