Radico Khaitan Reports ₹604 Crore Profit for FY26, Recommends 450% Dividend

Radico Khaitan Limited has announced its audited financial results for the fiscal year ended March 31, 2026. The company reported a consolidated revenue of ₹20,988.23 crore and a net profit of ₹604.48 crore for the year.

Dividend Boost for Shareholders

The company's Board of Directors has recommended a final dividend of 450%, which translates to ₹9 per equity share based on a ₹2 face value. This significant payout is subject to shareholder approval at the upcoming Annual General Meeting (AGM) scheduled for August 7, 2026. The record date for determining eligibility for this dividend is July 24, 2026.

Key Corporate Approvals

In addition to the dividend, the Board approved the re-appointment of Walker Chandiok & Co. LLP as the Statutory Auditors for a second five-year term. The company also gave its nod to a scheme for subsidiary amalgamation, which aims to streamline its corporate structure. This plan is contingent upon receiving necessary regulatory and other approvals.

Strategic Investment in D'YAVOL Spirits

Radico Khaitan also approved an investment of ₹38.86 crore in D'YAVOL Spirits, potentially adding to its prior stake acquired for ₹40 crore. This move aligns with the company's strategy of focusing on premiumisation and expanding its presence in the luxury spirits market. The venture, co-founded by Aryan Khan and involving Shah Rukh Khan and Nikhil Kamath, targets the luxury spirits market with international products.

Rationale and Future Focus

The strong financial performance and the substantial dividend payout reflect Radico Khaitan's healthy profitability and confidence in its future outlook. The proposed amalgamation seeks to enhance operational efficiencies by consolidating subsidiaries. The investment in D'YAVOL Spirits signals a strategic push into a high-growth luxury segment, potentially opening new revenue streams.

Risks to Monitor

The successful implementation of the subsidiary amalgamation scheme depends on obtaining necessary regulatory and other clearances. The timeline and conditions for these approvals remain key factors to watch.

Peer Performance

Radico Khaitan's financial results are often compared with industry peers such as United Spirits Ltd. and Globus Spirits Ltd. While United Spirits reported a 75% profit increase in its Q4 FY25, Radico Khaitan's FY26 net profit stood at ₹604.48 crore.

What to Watch Next

Investors will be tracking shareholder approval for the proposed 450% final dividend at the AGM. Progress on obtaining regulatory approvals for the subsidiary amalgamation is also a key development. Furthermore, updates on the market performance and penetration of D'YAVOL Spirits following the recent investment will be closely observed. The company is also assessing the implications of new labour codes on its financial reporting.