RADICO KHAITAN Q2 CONCALL: RECORD REVENUE OF ₹1,746 CR, EBITDA MARGIN EXPANDS 462 BPS TO 20.4%, PREMIUM VOLUMES SURGE 36%, VODKA GROWS 49% & FY27 PREMIUM VOLUME GUIDANCE UPGRADED TO 30%

• MANAGEMENT UPGRADED FY27 PRESTIGE & ABOVE (P&A) VOLUME GROWTH GUIDANCE TO 30%, SUPPORTED BY STRONG PREMIUMIZATION, VODKA DEMAND, NEW PRODUCT LAUNCHES & IMPROVED DISTRIBUTION • MANAGEMENT MAINTAINS FY27 EBITDA MARGIN GUIDANCE OF APPROXIMATELY 20%, SUPPORTED BY HIGHER PREMIUM PRODUCT CONTRIBUTION, BETTER REALISATIONS & OPERATING EFFICIENCIES • MANAGEMENT MAINTAINS FY27 LUXURY PORTFOLIO REVENUE GROWTH GUIDANCE OF 25%, DRIVEN BY RAMPUR, ROYAL RANTHAMBORE, VIRASAT & OTHER HIGH-VALUE SPIRITS • MANAGEMENT EXPECTS VODKA, PARTICULARLY FLAVOURED VODKA, TO OUTPERFORM OTHER SPIRITS CATEGORIES OVER THE NEXT 3–5 YEARS, SUPPORTED BY CHANGING CONSUMER PREFERENCES & CATEGORY EXPANSION • MANAGEMENT EXPECTS REGULAR PORTFOLIO VOLUMES TO STABILISE, WITH POTENTIAL GROWTH OF APPROXIMATELY 1–2%, FOLLOWING RECENT DECLINES CAUSED BY BASE EFFECTS & STATE POLICY CHANGES • MANAGEMENT EXPECTS WORKING CAPITAL TO NORMALISE DURING H2 FY27 AS INVENTORY REQUIREMENTS STABILISE, WHILE GRAIN PRICES COULD BEGIN STABILISING FROM NOVEMBER 2026 • Q2 REVENUE REACHED A RECORD ₹1,746 CR, SUPPORTED BY STRONG PREMIUM SPIRITS DEMAND, HIGHER REALISATIONS & RAPID GROWTH IN VODKA AND LUXURY BRANDS • Q2 EBITDA REACHED ₹356 CR, WITH EBITDA MARGIN EXPANDING 462 BPS YOY TO 20.4%, REFLECTING SIGNIFICANT IMPROVEMENT IN PRODUCT MIX & OPERATING PROFITABILITY • Q2 GROSS MARGIN IMPROVED 440 BPS YOY TO 48%, ALTHOUGH IT DECLINED 109 BPS SEQUENTIALLY DUE TO HIGHER RAW MATERIAL & PACKAGING COSTS • PREMIUM PRODUCT MIX CONTRIBUTED APPROXIMATELY 510 BPS TO REALISATION IMPROVEMENT, WHILE PRICING ACTIONS ADDED AROUND 85 BPS, PARTLY OFFSET BY INPUT-COST INFLATION • TOTAL IMFL SALES VOLUMES EXCEEDED 10 MILLION CASES, GROWING APPROXIMATELY 7% YOY, WHILE PREMIUM CATEGORIES SIGNIFICANTLY OUTPERFORMED THE OVERALL PORTFOLIO • PRESTIGE & ABOVE VOLUMES SURGED 36% YOY TO 5.28 MILLION CASES, REFLECTING STRONG PREMIUMIZATION & HIGHER CONSUMER DEMAND FOR VALUE-ADDED SPIRITS • VODKA PORTFOLIO VOLUMES GREW APPROXIMATELY 49% YOY, WHILE NON-VODKA PREMIUM BRANDS DELIVERED GROWTH OF AROUND 20% OR MORE • REGULAR SEGMENT VOLUMES DECLINED APPROXIMATELY 15% YOY, AFFECTED BY PREVIOUS-YEAR BASE EFFECTS & CHANGES IN STATE DISTRIBUTION POLICIES • MANAGEMENT INDICATED VODKA'S SHARE OF INDIA'S IMFL MARKET INCREASED FROM 3.7% IN 2025 TO 4.5% IN 2026 & APPROXIMATELY 6.3% IN Q2 FY27, HIGHLIGHTING STRONG CATEGORY MOMENTUM • VODKA CONTRIBUTES APPROXIMATELY 30% OF RADICO'S VOLUMES, WHILE FLAVOURED VODKA ACCOUNTS FOR AROUND 75% OF ITS VODKA PORTFOLIO • MAGIC MOMENTS CONTINUES TO BENEFIT FROM FLAVOURED VODKA DEMAND, WITH JAMUN RECEIVING A POSITIVE RESPONSE & NEW AAM PANNA FLAVOUR SHOWING ENCOURAGING INITIAL TRACTION • MANAGEMENT ESTIMATES EVERY ADDITIONAL 1 PERCENTAGE POINT OF VODKA MARKET SHARE COULD ADD APPROXIMATELY 4–4.5 MILLION CASES TO THE OVERALL INDIAN VODKA CATEGORY • AFTER DARK WHISKY GREW APPROXIMATELY 60% IN THE PREVIOUS YEAR, WITH REDESIGNED PACKAGING ALREADY INTRODUCED ACROSS 10 STATES & FURTHER EXPANSION PLANNED • 8PM PREMIUM BLACK IS SHOWING IMPROVED MOMENTUM FOLLOWING ITS PACKAGING REFRESH, SUPPORTING GROWTH IN THE COMPANY'S BROADER PREMIUM WHISKY PORTFOLIO • VIRASAT INDIAN SINGLE MALT HAS RECEIVED ENCOURAGING INITIAL DEMAND, TARGETING THE AFFORDABLE-LUXURY SEGMENT WITH PRICING OF APPROXIMATELY ₹3,500–4,000 PER BOTTLE • LUXURY PORTFOLIO GENERATED APPROXIMATELY ₹475 CR REVENUE IN FY26, WITH MANAGEMENT EXPECTING CONTINUED GROWTH FROM RAMPUR, ROYAL RANTHAMBORE, VIRASAT & PREMIUM GIN • KARNATAKA PREMIUM VOLUMES GREW OVER 100% DURING Q2, BENEFITING FROM DUTY REDUCTIONS & GREATER PRICING FLEXIBILITY, WHILE THE STATE CONTRIBUTES ONLY APPROXIMATELY 6% OF TOTAL BUSINESS • MAHARASHTRA P&A PORTFOLIO RETURNED TO GROWTH, WHILE TAMIL NADU VOLUMES INCREASED APPROXIMATELY 20%, SUPPORTED BY IMPROVING MARKET CONDITIONS • MANAGEMENT HAS REQUESTED PRICE INCREASES IN TELANGANA, WITH GOVERNMENT APPROVAL STILL PENDING, WHILE ANDHRA PRADESH REGULAR VOLUMES WERE AFFECTED BY PREVIOUS ROUTE-TO-MARKET CHANGES • COMPANY EXPANDED INTERNATIONAL DUTY-FREE DISTRIBUTION TO HEATHROW, GATWICK, BIRMINGHAM & MANCHESTER AIRPORTS, STRENGTHENING GLOBAL BRAND VISIBILITY • INTERNATIONAL DUTY-FREE PRESENCE HAS REACHED APPROXIMATELY 70 LOCATIONS, WITH MANAGEMENT TARGETING EXPANSION TO 100 LOCATIONS • EXPORT SHIPMENTS HAVE RECOVERED FOLLOWING INITIAL WEST ASIA DISRUPTIONS, ALTHOUGH HIGHER FREIGHT COSTS CONTINUE TO AFFECT INTERNATIONAL PROFITABILITY • MANAGEMENT DOES NOT EXPECT AN IMMEDIATE MAJOR THREAT TO RADICO'S PREMIUM POSITIONING FROM UK–INDIA FTA-RELATED SCOTCH PRICING BENEFITS • IMFL BUSINESS MARGINS STOOD AT APPROXIMATELY 24% OR HIGHER, WHILE NON-IMFL BUSINESS MARGINS WERE AROUND 9.5–10%, HIGHLIGHTING THE PROFITABILITY ADVANTAGE OF PREMIUM SPIRITS • RAW MATERIAL & PACKAGING INFLATION IMPACTED Q2 COSTS BY APPROXIMATELY ₹27 CR, REDUCING GROSS MARGIN BY AN ESTIMATED 156–160 BPS • MANAGEMENT HAS INCREASED INVENTORY & WORKING CAPITAL TO SUPPORT PREMIUM GROWTH AND SECURE RAW MATERIAL AVAILABILITY, WHILE CAPEX REMAINS FOCUSED ON MAINTENANCE, EFFICIENCY & CAPACITY OPTIMISATION • MANAGEMENT REMAINS STRONGLY POSITIVE ON PREMIUMIZATION, VODKA CATEGORY EXPANSION, LUXURY BRAND GROWTH & SUSTAINABLE MARGINS, BUT GRAIN AND PACKAGING INFLATION, STATE PRICING APPROVALS, REGULATORY SCRUTINY, EXPORT FREIGHT COSTS & WORKING CAPITAL REQUIREMENTS REMAIN KEY RISKS

RADICO KHAITAN LTD

← Back to feed