Radico Khaitan (RADICO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 marked a significant operational turnaround, with resilience amid sector-wide inflation and commodity volatility, and unaudited standalone and consolidated results approved by the Board and auditors.

• Prestige and above category saw strong double-digit volume and value growth, now contributing 53.2% of IMFL volumes and 75.7% of IMFL sales value.

• New luxury products and campaigns were launched, expanding the premium portfolio and international presence.

• Management highlights successful navigation of inflationary pressures and continued investment in premium brands and innovation.

• 47,581 equity shares were allotted under the ESOP Scheme 2006 during the quarter.

Financial highlights

• Q2 FY25 net revenue from operations was ₹1,116.3 Cr (+20.7% YoY); standalone revenue was ₹390,658.53 lakhs, up from ₹356,906.52 lakhs YoY.

• Q2 FY25 EBITDA was ₹162.4 Cr (+34.7% YoY) at 14.5% margin; gross margin was 43.6%.

• Q2 FY25 net profit was ₹8,162.90 lakhs standalone and ₹8,008.93 lakhs consolidated, both up YoY.

• Basic EPS for Q2 FY25 was ₹6.14 standalone and ₹6.03 consolidated, both up YoY.

• Net debt increased over March 2024 due to cyclical inventory buildup and higher receivables.

Outlook and guidance

• Management expects continued double-digit premium volume growth and stable margins as input cost pressures ease.

• EBITDA margin targeted to increase by 100–125 basis points annually, aiming for late teens in three years.

• Premiumization and luxury segment growth expected to drive profitability and volume.

• Regular category volumes anticipated to return to mid-single digit growth as state-specific disruptions ease.

• Anticipates improvement in grain and ENA cost trends from Q3 FY2025 onwards.