Radico Khaitan (RADICO) Q3 24/25 earnings summary

Executive summary

• Achieved industry-leading IMFL volume growth of 15.3% year-on-year in Q3 FY25, with prestige and above-category volumes up 17.7% and luxury/semi-luxury brands crossing INR 100 crores in Q3 and INR 250 crores in nine months.

• Achieved highest ever quarterly volume, net sales, and EBITDA in Q3 FY2025, driven by robust growth in premium brands and a sharp recovery in regular brands after nine quarters of decline.

• Prestige & Above brands contributed over 50% of IMFL volumes and over 72% of IMFL sales value, reflecting ongoing premiumization.

• Core brands like Magic Moments Vodka and After Dark Blue Whisky showed strong momentum, with After Dark achieving over 100% growth in nine months and joining the Millionaires Club.

• Financial results for the quarter and nine months ended December 31, 2024, were approved by the Board and reviewed by statutory auditors with an unmodified conclusion.

Financial highlights

• Q3 FY2025 revenue from operations (net) rose 11.5% year-over-year to ₹1,294.2 Cr; gross profit up 14.6% to ₹556.8 Cr at 43.0% margin; EBITDA increased 28.8% to ₹183.2 Cr (14.2% margin); total comprehensive income up 30.0% to ₹95.4 Cr.

• Standalone revenue from operations for Q3 FY25 was ₹444,090.15 lakhs, up from ₹411,123.70 lakhs in Q3 FY24; standalone net profit for Q3 FY25 was ₹9,541.64 lakhs, compared to ₹7,338.08 lakhs in Q3 FY24.

• Gross margin improved to 43% in Q3 FY25 from 41.8% in Q3 FY24, but declined 60 bps sequentially due to food grain inflation.

• Basic EPS for Q3 FY2025 was ₹7.18, up 30.1% year-over-year.

• Employee benefit expenses and interest costs rose sequentially due to annual appraisals, incentives, and higher working capital utilization.

Outlook and guidance

• Strong growth momentum expected to continue in both domestic and international markets, with luxury and semi-luxury portfolio projected to cross INR 500 crores in FY26.

• Margin expected to improve by 100-125 bps annually for the next three years, targeting 13% margin.

• Regular segment recovery anticipated, with mid-single-digit growth expected.

• Ongoing focus on premiumization, new product development, and expanding distribution, especially for high-growth brands.

• Debt reduction targeted, with a stable debt scenario expected by mid-FY27.