Radico Khaitan (RADICO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 marked a significant turnaround in operational performance, with resilience despite sector-wide challenges from inflation and commodity volatility.

• Achieved 20.7% year-over-year growth in net revenue from operations in Q2 FY2025, with Prestige & Above brands driving double-digit volume and value growth.

• Prestige & Above brands now contribute 53.2% of IMFL volumes and 75.7% of IMFL sales value, reflecting ongoing premiumization.

• EBITDA margin improved to 14.5% in Q2 FY2025, up from 13.0% in Q2 FY2024, with total comprehensive income up 33.0% year-over-year.

• Unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2024, were approved by the Board and reviewed by statutory auditors with an unmodified conclusion.

Financial highlights

• Q2 FY2025 net revenue from operations: ₹1,116.3 Cr (+20.7% YoY); H1 FY2025: ₹2,252.8 Cr (+19.9% YoY).

• Prestige and above category volume grew 12.6%, with value growth of 18%.

• Q2 FY2025 EBITDA: ₹162.4 Cr (+34.7% YoY) at 14.5% margin; H1 FY2025 EBITDA: ₹310.6 Cr (+29.7% YoY) at 13.8% margin.

• Q2 FY2025 gross profit: ₹487.0 Cr (+19.3% YoY) at 43.6% margin; H1 FY2025 gross profit: ₹953.5 Cr (+15.7% YoY) at 42.3% margin.

• Basic EPS for Q2 FY2025: ₹6.14 (+32.8% YoY); H1 FY2025: ₹11.85 (+26.6% YoY).

Outlook and guidance

• Expectation of continued margin improvement, targeting EBITDA margin increases of 100–125 basis points annually, aiming for late teens margin in three years.

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

• Strategic focus remains on innovation, premiumization, and prudent marketing investments to sustain growth.

• Premium and luxury segments projected to maintain double-digit growth, especially during festive periods.

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