Radico Khaitan (RADICO) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly performance in Q2 FY2026, driven by robust volume growth, premiumization, and disciplined execution.

• Prestige and Above (P&A) segment saw record volumes, with Magic Moments vodka and After Dark whisky leading growth.

• Continued investments in brand building, innovation, and new launches in luxury and flavored segments supported high-quality growth ambitions.

• Management highlights resilience amid global trade challenges and strong domestic portfolio performance.

• Unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2025, were approved by the Board and reviewed by auditors with an unmodified conclusion.

Financial highlights

• Total IMFL volume reached 9.34 million cases, up 38% year-on-year; revenue from operations rose 33.8% year-over-year to ₹1,493.9 crore.

• EBITDA increased 45.4% year-over-year to ₹236.1 crore, with EBITDA margin at 15.8%.

• Net profit for Q2 FY26 was ₹13,784 lakhs (standalone) and ₹12,941 lakhs (consolidated), both up significantly year-over-year.

• Gross margin stable at 43.6% year-on-year, up from 43% in Q1 FY2026.

• Net debt reduced by INR 146 crore (₹146.1 crore) since March 2025.

Outlook and guidance

• Confident of delivering strong double-digit growth in P&A category and surpassing 20% volume growth guidance for the full year.

• Margin guidance: 150 bps increase in FY2026, with further 125 bps annual increases over next two years, targeting late teens.

• On track to become debt free by FY2027.

• Plans to maintain advertising and sales promotion spend at 6–8% of IMFL revenues to sustain momentum.

• Expanding strategic investments, including acquiring a 47.5% stake in D'YAVOL Spirits B.V., with a similar acquisition in D'YAVOL Spirits Private Limited in process.