Radico Khaitan reported robust FY2026 results with consolidated revenue up 24.7% to ₹6,050.4 Crore and net profit soaring 74.9% to ₹604.5 Crore. This performance is driven by premiumization and operational efficiency, with the 'Prestige & Above' segment showing strong growth.
Radico Khaitan FY2026 Earnings: Record Revenue and Profit
Radico Khaitan's consolidated revenue reached ₹6,050.4 Crore in FY2026, while net profit was ₹604.5 Crore.
Reader Takeaway: Premiumization strategy drives strong revenue and profit growth, with debt reduction as a key focus.
What just happened
Radico Khaitan announced its financial results for the fiscal year 2026, reporting significant growth across key metrics. Consolidated revenue from operations increased by 24.7% to ₹6,050.4 Crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 52.4% to ₹1,018.5 Crore. Net profit saw a substantial jump of 74.9%, reaching ₹604.5 Crore. Basic Earnings Per Share (EPS) stood at ₹45.2.
The company's 'Prestige & Above' segment was a major contributor, with volumes growing 28.5% to 16.7 million cases. This segment now represents over 45% of total Indian Made Foreign Liquor (IMFL) volumes and over 70% of IMFL sales value.
Why this matters
These results indicate the successful execution of Radico Khaitan's strategy focused on premiumization and operational efficiency. The substantial increase in net profit and EBITDA, alongside margin expansion from 13.8% to 16.8%, highlights the company's ability to translate sales growth into higher profitability. The strong performance of the premium segment suggests a successful shift towards higher-value products.
The backstory
Radico Khaitan has been strategically focusing on enhancing its product portfolio with premium offerings and improving operational leverage. This has been a multi-year effort to move away from lower-margin products towards a more profitable and sustainable business model. The company had previously set targets for revenue and profitability, which it appears to have met or exceeded in FY2026.
What changes now
With record revenues and EBITDA crossing the ₹1,000 Crore mark, the company is in a stronger financial position. Radico Khaitan aims to become debt-free in the first half of FY2027. The Board has recommended a final dividend of ₹9 per share.
Risks to watch
Investors should monitor regulatory risks within the highly regulated liquor industry, as state-specific policy changes can impact operations. Additionally, global geopolitical tensions could affect commodity and energy prices, potentially impacting margins.
Peer comparison
While specific peer data is not provided in the filing, Radico Khaitan's growth in the premium segment and margin expansion places it in a competitive position within the Indian spirits market. Companies focusing on premiumization have generally shown better growth and profitability trends.
Context metrics (time-bound)
The company reported FY2026 consolidated revenue of ₹6,050.4 Crore, a 24.7% increase from FY2025's ₹4,851.2 Crore. EBITDA grew 52.4% to ₹1,018.5 Crore from ₹668.3 Crore in FY2025. Net profit increased 74.9% to ₹604.5 Crore from ₹345.6 Crore in FY2025. EBITDA margin improved by 305 basis points to 16.8% in FY2026.
What to track next
Investors will be keen to see the company achieve its target of becoming debt-free in H1 FY2027. Tracking the planned 120 basis points EBITDA margin expansion in FY2027 and the continued growth of the 'Prestige & Above' segment will be crucial.