Whalesbook
FY26 Financial Performance
Radico Khaitan reported a record Fiscal Year 2026, with revenue climbing 24.7% year-on-year to ₹6,050.4 crore. The company's operational profit, or EBITDA, saw a significant increase of 52.4%, reaching ₹1,018.5 crore. Gross Profit grew 31.9% to ₹2,740.9 crore, and Total Comprehensive Income for FY26 jumped 75.9% to ₹600.3 crore. In the fourth quarter of FY26, revenue rose 15.3% to ₹1,503.7 crore, with EBITDA surging 64.0% to ₹286.3 crore.
Drivers of Strong Performance
The company's impressive results stem from its ongoing focus on premiumisation, especially within its Prestige & Above segments. These premium brands continue to grow faster than overall volume. Additionally, a substantial reduction in net debt by ₹329.5 crore to ₹244.1 crore has significantly strengthened the company's financial position.
Debt Reduction Journey
Radico Khaitan has made strong progress in strengthening its balance sheet, as part of its aim to become net debt-free by the first half of FY2027. This consistent reduction in debt reflects disciplined financial management alongside its business expansion.
Shareholder Value and Future Outlook
Shareholders are set to benefit from increased returns, with a recommended dividend of ₹9 per share for FY2026, up from ₹4 in FY2025. The company has also adopted a new minimum 20% dividend payout policy to ensure sustained shareholder returns. Looking ahead, investors will focus on Radico Khaitan's progress towards its net debt-free target by H1 FY2027, the impact of marketing investments and new product launches, and its ability to maintain margin expansion.
Geopolitical Risks to Monitor
Management is closely watching geopolitical developments in West Asia, as these could affect business and financial performance.
Comparison to Industry Peers
Radico Khaitan's performance in FY2026 significantly outpaced its listed peers. While Radico Khaitan saw revenue growth of 24.7% and EBITDA growth of 52.4%, United Spirits reported revenue growth of 8.5% and EBITDA growth of 25.3%. Allied Blenders and Distillers posted revenue growth of 8.1% and EBITDA growth of 28.5%.
Key Financial Metrics
- Net Debt: Decreased from approximately ₹573.6 Crore in FY2025 to ₹244.1 Crore in FY2026 (Standalone).
- Total Comprehensive Income: Increased from approximately ₹341.2 Crore in FY2025 to ₹600.3 Crore in FY2026 (Standalone).