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    Radico Khaitan

    RADICO
    Fast Moving Consumer Goods·7 May 2026
    Management Summary

    Radico Khaitan delivered a strong performance in Q4 FY26, achieving record net revenue and EBITDA for the full year, driven by robust growth in its Prestige & Above segment. The company saw significant margin expansion and reduced net debt, while also outlining plans for new product launches and market expansion. Management acknowledged challenges from policy changes and input cost inflation but expressed confidence in its strategy and future growth trajectory.

    Highlights

    8

    • FY26 net revenue exceeded INR 6,000 crores, marking a key milestone.

    • FY26 EBITDA crossed INR 1,000 crores, demonstrating strong profitability.

    • Prestige & Above segment recorded 28% volume growth in Q4 FY26, driving portfolio mix improvement.

    • Magic Moments Vodka achieved 21% volume growth in FY26, reaching 8.6 million cases and INR 1,500 crores in sales value.

    • After Dark Whisky grew over 60% in FY26, crossing 3.1 million cases.

    • Q4 FY26 EBITDA margin was 19%, expanding 565 basis points year-on-year, the highest ever.

    • Gross margin in Q4 FY26 was 48%, expanding 450 basis points year-on-year.

    • Net debt reduced by INR 329 crores during FY26, with a target to become debt-free in H1 FY27.

    Concerns

    3

    • Regular volume degrowth in Q4 FY26 due to a higher base in Q4 FY25 and policy changes in Maharashtra and Karnataka.

    • Potential implications for supply chain and input costs due to global environment, especially West Asia developments.

    • Glass prices increased by approximately 15% in the last month, though factored into costing.

    Key financials

    Single quarter

    06 metrics
    1. 01Net Revenue₹6,000 Cr
    2. 02EBITDA₹1,000 Cr
    3. 03EBITDA Margin19%+5.7%YoY
    4. 04Gross Margin48%+4.5%YoY
    5. 05IMFL Volume9.52 Mn+4%YoY

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹150 crores

    Debt

    Debt disclosed

    Guidance & targets

    12
    CategoryTargetPriority
    Prestige & Above Portfolio Volume Growth
    Volume growth
    20%
    		High
    EBITDA Margin
    Expansion
    125 basis points
    		High
    Luxury Portfolio Value Growth
    Value growth
    25%
    		High
    Luxury Portfolio Value
    Value
    INR 1,000 crores
    		Medium
    Regular Segment Volume Growth
    Volume growth
    3% to 5%
    		Medium
    P&A Category Volume Growth
    Volume growth
    20%
    		High
    IMFL Business Margin
    Margin
    20% to 21%
    		High
    Non-IMFL Business Margin
    Margin
    9%
    		High
    Non-IMFL Business Growth
    Growth
    7% to 8%
    		Medium
    Dividend Payout Policy
    Minimum payout
    20%
    		High
    Market Share in UPML/UPCL
    Market share
    24%, 25%
    		High
    IMFL Business Growth
    Growth
    20%
    		High

    Debt-free status

    H1 FY27
    CurrentNet debt reduced by INR 329 crores in FY26
    TargetDebt-free

    Why it matters

    Achieving debt-free status will strengthen the balance sheet and improve financial flexibility.

    Our balance sheet remains strong, and we are on track to become debt-free in H1 FY27.

    How to verify

    capital_allocation.debt.net_debt

    Risks & concerns

    3
    RiskSeverity

    Global environment and West Asia developments impacting supply chain and input costs

    The company will monitor the global environment closely, especially developments in West Asia, due to potential implications for supply chain and input costs. — Management acknowledged

    medium

    Inflation in glass prices

    Glass prices increased by around 15% in the last month, but this has been factored into costing, and the company is confident in its margin expansion. — Management acknowledged

    medium

    Regular volume degrowth due to policy changes in Maharashtra and Karnataka

    Regular volume degrowth in Q4 FY26 was attributed to a higher base in Q4 FY25 and the impact of policy changes in Maharashtra and Karnataka. — Management acknowledged

    medium

    Q&A highlights

    8

    “To answer your first question about the new launches, if you see in the last year itself, we have launched three-four brands in the luxury as well as the P&A category. So, we want to consolidate that. That will be our first objective and take it nationally like our Virasat Indian Single Malt, The Spirit of Kashmyr. Right now, it is in 10 states, we want to take it to 20 states. So, that will be our prime focus. Plus, we have launched new flavours of Magic like Jamun, Mango, Thandai, which we are going to again take nationally. And in the coming year what we feel we are going to launch is some more flavours in the Magic family and those will be also in the Flavours of India category. Also at the end of the year we will be coming out with Tequila in D'YAVOL Spirits. So, these are our launch plans. ... So, on the margin front, as you noticed that in last quarter we have improved our gross margin by 450 basis points and EBITDA margin by 565 basis points and we are quite confident to add 120 basis points to 125 basis points margins in the coming year ‘27. So, this is on annualized basis. We have got the price increases in some of the states which amount to be around 60 basis points. At the same time product premiumisation and operating leverage will yield us more than 200 basis points. So, we will be more than mitigating the impact of the cost push and thereafter also we are confident to deliver 120 basis points to 125 basis points margin expansion.”

    Provides detailed roadmap for new product launches and expansion, and explains the strategy for achieving and mitigating margin expansion targets despite commodity costs.

    asked by Aditya Soman

    3 min read7 chapters

    Detailed Narrative

    01

    Strong FY26 Performance and Key Milestones

    Radico Khaitan achieved a robust performance in FY26, crossing significant milestones with net revenue exceeding INR 6,000 crores and EBITDA surpassing INR 1,000 crores. This performance was attributed to disciplined execution, a richer portfolio mix, and a focus on value-led growth. The company's business model sustainability and brand strength were highlighted as key drivers for these achievements.

    02

    Prestige & Above and Luxury Portfolio Growth

    The Prestige & Above segment continued to lead growth, with the luxury portfolio delivering INR 475 crores in sales value for FY26. Magic Moments Vodka showed strong momentum with 21% volume growth, reaching 8.6 million cases and INR 1,500 crores in sales value, including a 28% year-on-year growth in Q4. After Dark Whisky also performed strongly, growing over 60% and crossing 3.1 million cases, contributing to the overall premiumisation strategy.

    03

    Margin Expansion and Profitability

    Gross margin in Q4 FY26 expanded by 450 basis points year-on-year to 48%, driven by a better portfolio mix, softer raw material prices, and ongoing premiumisation. EBITDA margin reached a highest-ever 19% in Q4 FY26, expanding 565 basis points year-on-year, reflecting the strength of the premiumisation strategy and operating leverage. The company expects a further 125 basis points EBITDA margin expansion in FY27, supported by price increases and product premiumisation.

    04

    Capital Allocation and Debt Reduction

    Net debt was reduced by INR 329 crores during FY26, with the company on track to become debt-free in H1 FY27, driven by improved profitability and cash flow generation. Capital expenditure for FY26 was in the range of INR 150-175 crores, primarily for internal capacity expansion and optimization. The Board articulated a strong dividend policy with a minimum payout of 20% of profit after tax, emphasizing confidence in cash generation and a focus on organic growth.

    05

    Market Dynamics and State Policy Impacts

    Karnataka's rationalized pricing for premium brands has positively impacted Radico Khaitan's portfolio, with anticipation of further similar government actions. In Maharashtra, the IMFL industry saw a 20-25% decline post-MML introduction but is now stabilizing, with the Premium & Above category remaining stable. The company is monitoring changes in West Bengal and potential upliftment of prohibition in Bihar for future strategic adjustments, aiming to benefit from these market shifts.

    06

    Innovation and Consumer Engagement

    New flavor innovations for Magic Moments Vodka, including 'Flavours of India' category (Jamun, Mango, Thandai), are contributing to robust momentum and catering to GenZ preferences for white spirits. The company is deepening consumer engagement through focused marketing, on-trade activations, and brand advocacy initiatives, including 1,000 advocacy sessions planned in the on-trade. A Tequila launch under D'YAVOL Spirits is also planned for the end of the year, further expanding the premium portfolio.

    07

    Supply Chain and Input Cost Management

    Radico Khaitan's power and fuel needs are 90% biofuel-driven in Sitapur and Rampur plants, ensuring self-sufficiency and independence from LPG. While glass prices increased by about 15% in the last month, this has been factored into costing, and the company maintains long-standing relationships with manufacturers to ensure supply continuity. The company is confident in mitigating cost push impacts through product premiumisation and operating leverage, aiming for sustained margin expansion.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.