Radico Khaitan achieved record net revenue of ₹6,050.4 crore and EBITDA of ₹1,018.5 crore in FY2026. The company's focus on premium products is driving growth and margin expansion, with plans to be debt-free by early FY2027.
Radico Khaitan Posts Record FY2026 Results with ₹6,050 Crore Revenue
Radico Khaitan has announced its financial results for the fiscal year ended March 31, 2026, achieving a landmark ₹6,050.4 crore in net revenue and ₹1,018.5 crore in EBITDA.
Reader Takeaway: Strong premiumisation drives revenue and margin growth; company aims for debt-free status soon.
What Just Happened
Radico Khaitan reported its financial performance for FY2026. Net revenue saw a significant year-on-year increase of 24.7%, reaching ₹6,050.4 crore. EBITDA surged by 52.4% to ₹1,018.5 crore, marking the first time the company crossed the ₹1,000 crore EBITDA milestone. Profit Before Tax (PBT) grew by 72.9%, and Total Comprehensive Income increased by 75.9%. The company also proposed a dividend of ₹9.00 per share.
Why This Matters
These results underscore the successful execution of Radico Khaitan's strategy, particularly its focus on premiumisation. The substantial growth in revenue and profitability, alongside an improved EBITDA margin of 16.8%, indicates enhanced operational efficiency and a strong consumer response to its higher-value products. The company's progress towards becoming debt-free by H1 FY2027 will also enhance financial flexibility.
The Backstory
For the past few years, Radico Khaitan has been strategically shifting its product mix towards higher-margin 'Prestige & Above' brands, often referred to as its 'Indi-Lux' vision. This involved concentrating on brands like Magic Moments, 8 PM, Encore, and Remy Martin (through a distribution partnership). The company has also been working on deleveraging its balance sheet.
What Changes Now
The company has set ambitious targets for FY2027, aiming for over 20% volume growth in the Prestige & Above category and approximately 25% growth for its luxury and semi-luxury portfolio. Management also guided for a further 120 basis points expansion in EBITDA margin.
Risks to Watch
As a player in the alcoholic beverage industry, Radico Khaitan faces inherent risks related to regulatory changes across various Indian states. Taxation policies and licensing conditions can significantly impact operations and profitability. Additionally, volatility in input costs, such as grain and Extra Neutral Alcohol (ENA), remains a concern that could pressure margins if not effectively managed.
Peer Comparison
Radico Khaitan operates in the Indian Made Foreign Liquor (IMFL) segment, competing with companies like United Spirits and Globus Spirits. Its strong performance in the premium segment contrasts with the broader industry, highlighting its successful strategy. United Spirits also focuses on premiumisation, while Globus Spirits caters to various segments, including mass market and semi-premium.
Context Metrics (Time-Bound)
- FY2026 Net Sales: ₹6,050.4 Crore (up 24.7% Y-o-Y from ₹4,851.2 Cr in FY2025)
- FY2026 EBITDA: ₹1,018.5 Crore (up 52.4% Y-o-Y from ₹668.4 Cr in FY2025)
- FY2026 EBITDA Margin: 16.8% (up from 13.8% in FY2025)
- 'Prestige & Above' Volume: 16.70 million cases (up 28.5% Y-o-Y)
- Net Debt Reduction: ₹329 crore in FY2026
What to Track Next
Investors will be closely watching Radico Khaitan's progress towards its FY2027 guidance, particularly the volume growth in premium categories and the planned EBITDA margin expansion. The company's ability to maintain its debt-free status and manage input cost fluctuations will also be key factors to monitor.