Radico Khaitan Q1 Results: Premium push drives 76% profit growth; FY27 guidance raised

Radico Khaitan Ltd has upgraded its FY27 guidance for its Prestige & Above (P&A) portfolio, now expecting volume growth of more than 25%, up from its earlier forecast of 20%.

The liquor maker also reiterated its expectation of delivering an EBITDA margin of around 20% for the financial year, after reporting a record June quarter driven by premiumisation and strong consumer demand.

The company posted its highest-ever quarterly volume, net sales and EBITDA, with management attributing the performance to sustained momentum in premium brands.

Consolidated net profit surged 76% year-on-year to ₹230 crore from ₹131 crore, while revenue rose 10.4% to ₹5,867 crore from ₹5,313.5 crore. EBITDA climbed 50% to ₹348 crore, with margin expanding sharply to 20.7% from 15.4% a year earlier.

The company said Indian Made Foreign Liquor (IMFL) revenue grew 18% during the quarter, led by its Prestige & Above portfolio. Non-IMFL revenue declined due to higher captive consumption and lower bulk alcohol sales during the period.

Radico Khaitan also continued to step up investments behind its brands. Advertising and sales promotion (A&SP) expenditure increased to 6.9% of IMFL sales in the June quarter, compared with 5.8% a year ago. The company said it intends to maintain A&SP spending within a 6–8% range of IMFL revenue to sustain growth momentum and strengthen market share.

Chairman and Managing Director Lalit Khaitan said the company had carried forward the momentum from the previous year, delivering a strong start to FY27 through sustained premiumisation, disciplined execution and long-term strategic investments.

He acknowledged that geopolitical uncertainties, supply chain disruptions and volatility in certain input costs continue to pose challenges. However, he noted that the Indian IMFL industry continues to benefit from favourable structural tailwinds, including regulatory reforms, an improving policy environment and rising consumer preference for premium brands.

Khaitan added that the company's investments in brand building, manufacturing capacity, backward integration and supply chain resilience have strengthened its competitive position and provided a robust platform for long-term growth. He also highlighted India's favourable demographics, rising disposable incomes and growing appetite for premium experiences as key drivers of future demand.

Investors welcomed the upbeat guidance and earnings performance. Following the results, shares of Radico Khaitan climbed 3.53% to ₹4,296.10 on the Stock Exchange as of 3:19 pm.