Profit Surge Driven by Premium Mix
Radico Khaitan, the home-grown liquor major, posted a strong financial performance for the quarter ended September 2026, with consolidated net profit climbing 66.5% to Rs 232.34 crore. This significant jump from the Rs 139.55 crore reported in the same quarter of the previous fiscal year was attributed to the company's continued focus on its premium-first strategy.
The company’s revenue from operations rose 10.4% year-on-year to Rs 5,582.71 crore. Total income, which includes other income, increased by a similar margin of 10.45% to Rs 5,587.76 crore. The strong top-line growth was underpinned by a 10.1% increase in total volume, reaching 9.83 million cases (9 litres each).
Premium Segment Outperforms Industry
The core driver of this performance was the 'Prestige and Above' segment, which saw volume growth of 35.8% to 5.28 million cases. Managing Director Abhishek Khaitan highlighted that this portfolio grew well ahead of the industry average, enriching the company’s product mix.
Within this premium portfolio, vodka sales led the charge, surging 49% to 2.96 million cases. This was supported by strong growth in the whisky portfolio, which includes brands like Rampur Indian Single Malt Whisky. In contrast, the 'Regular & Others' segment contracted by 9.7% to 4.55 million cases. The company noted that this decline was due to a high base in the year-ago period following a route-to-market strategy change in Andhra Pradesh, along with the impact of policy changes in Maharashtra and Karnataka.
Margin Expansion and Cost Management
Radico Khaitan’s gross margin expanded by 440 basis points year-on-year to 48% in the second quarter of FY27. This improvement was largely driven by the higher contribution from premium products. However, the company did face inflationary pressure in grain prices. To mitigate this, Radico Khaitan had built up higher levels of stock, which supported the company through the quarter. This strategy resulted in higher working capital requirements during the period.
Total expenses increased by 8.35% to Rs 5,280.04 crore, which was lower than the revenue growth rate, contributing to the significant profit expansion.
Balance Sheet Strength and Future Outlook
As of September 30, 2026, Radico Khaitan reported a net debt of Rs 175.4 crore, a reduction of Rs 68.7 crore from March 31, 2026. Total debt stood at Rs 247.1 crore, including term loans of Rs 54.3 crore, while cash and cash equivalents were at Rs 71.7 crore. Term loans declined by Rs 75.7 crore during the first half of the fiscal year. The company has stated its expectation to become net debt-free in the second half of FY27.
Looking ahead, the company noted that a rationalised duty framework in Karnataka is showing early signs of a more premium-friendly market, with encouraging signals also coming from Tamil Nadu.
In a separate corporate announcement, Radico Khaitan informed that finance chief Dilip Banthiya would be inducted onto the board as an executive director alongside his CFO duties, effective October 28. Additionally, Senior Vice President Saket Somani will serve as deputy chief financial officer from the same date.