Radico Khaitan (RADICO) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly performance in Q1 FY26 across volume, net sales, and profitability, driven by strong demand for premium and luxury brands, successful new product launches, and robust growth in core and new premium brands.

• Strategic focus on premiumization, innovation, and operational efficiency continues to deliver robust growth and margin expansion, with management confident in sustaining topline growth and further net debt reduction.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by statutory auditors, who issued unmodified conclusions.

• The Group's business activity is focused on Alcohol and Alcoholic Beverages, with no segmental reporting required.

Financial highlights

• Total IMFL volume reached 9.72 million cases, up 38% year-over-year; prestige and above category volume grew 41%.

• Revenue from operations (net) rose 32.5% year-over-year to ₹1,506.0 crore; standalone revenue for Q1 FY26 was ₹531,352 lakhs, up from ₹426,562 lakhs in Q1 FY25.

• Gross profit increased 38.8% to ₹647.7 crore; EBITDA up 55.6% to ₹230.7 crore; net profit margin improved to 8.9%.

• Net debt reduced by INR 164 crores (₹163.7 crore) since March 2025, with expectations to be nearly debt-free by FY27.

• Non-IMFL revenue grew 12% year-over-year; luxury and semi-luxury brands delivered nearly 50% value growth.

Outlook and guidance

• Poised to deliver over 20% overall volume growth in FY26, led by prestige and above category.

• Margin expansion guidance raised to 125-150 basis points annually for the next three years, supported by premium brand growth and operating leverage.

• CapEx expected at INR 150-160 crores annually for the next two years, focused on brand and malt-related investments.

• Marketing investments to remain around 6–8% of IMFL revenues to drive sales momentum.

• Luxury and semi-luxury brands targeted to achieve INR 500 crores revenue in FY26.