Radico Khaitan (RADICO) Q4 24/25 earnings summary

Executive summary

• Achieved record quarterly and annual financial performance in FY25, with highest-ever volumes, profitability, and a 28% Q4 volume growth, supported by premiumization, innovation, and expanded distribution.

• Magic Moments Vodka surpassed 7 million cases, and new luxury brand launches are planned, with continued focus on targeted marketing and portfolio strengthening.

• Audited standalone and consolidated results for FY25 were approved with unmodified opinions; 200% dividend (₹4 per share) recommended, subject to AGM approval.

• Strategic focus on cash flow generation, efficient working capital, and no major CapEx for ENA capacity in the next 3-4 years.

• TVA & Co. LLP appointed as Secretarial Auditor for five years, pending shareholder approval.

Financial highlights

• FY25 revenue from operations (net) reached ₹4,851.2 crore, EBITDA ₹668.4 crore, and PAT ₹341.2 crore; Q4 revenue rose 20.9% to ₹1,304.1 crore, with gross margin at 43.5%.

• Q4 IMFL volume at 9.15 million cases, up 28% year-over-year; Prestige & Above (P&A) category volume grew 17%.

• EBITDA margin improved to 13.8% for FY25, with basic EPS at ₹25.81, up 34.9% year-over-year.

• Net debt reduced by ₹172.4 crore to ₹573.6 crore as of March 31, 2025; significant inventory liquidation in Q4.

• Dividend declared at 200% (₹4.00 per share), up from 150% in FY24.

Outlook and guidance

• Confident of surpassing ₹500 crore in luxury portfolio revenue in FY26, building on 32% growth to ₹340 crore in FY25.

• Management expects robust demand, double-digit growth in P&A, 12%-13% growth in regular segment, and further margin expansion in FY26.

• Targeting 35%-40% net debt reduction in FY26, aiming for near-zero debt in two years.

• Two new luxury brands and a super-premium whisky launch planned in FY26.

• Anticipate stable raw material and commodity prices, supporting margin improvement.