Radico Khaitan reported a 76% rise in net profit to ₹230 crore for the first quarter of FY27, fueled by a 35.8% volume growth in its premium liquor segment. The company has raised its annual growth forecast for premium brands, reflecting shifting consumer demand toward higher-value spirits.
Detailed Coverage
Radico Khaitan has delivered a strong performance for the first quarter ending June 2026, with net profit surging 76% year-on-year to ₹230 crore. The results demonstrate the impact of the company's focus on premiumization, as total revenue grew 11.7% to reach ₹1,684 crore. The operational efficiency also improved, with EBITDA—a measure of operating profitability—rising by 50.4% to ₹349 crore. Consequently, the operating margin expanded to 20.7%, up from 15.4% in the same quarter last year.
Premium Segment Performance
The company’s strategy to shift toward higher-value products is showing clear results. Its 'Prestige & Above' brand segment recorded a 35.8% increase in volumes, reaching 5.22 million cases. This segment is now the largest contributor to the company’s business, accounting for 53.1% of total Indian Made Foreign Liquor (IMFL) volumes. In terms of value, these premium brands now represent 76.8% of total IMFL sales. Specifically, the Magic Moments vodka brand emerged as a major growth contributor, reporting a 43% jump in volume.
Growth Outlook and Targets
Following these results, management has increased its growth expectations for the full financial year. The company now anticipates volume growth of over 25% for its 'Prestige & Above' portfolio for FY27. Furthermore, it has reaffirmed its target to maintain an EBITDA margin of around 20% for the remainder of the year. The leadership team noted that consistent investments in brand building and supply chain infrastructure have helped the company capture a larger share of the premium market despite competitive pressure in the alcoholic beverages sector.
Investor Context and Monitorables
While the current margins show significant improvement, investors should keep in mind that the liquor industry is highly sensitive to state-level regulatory changes, tax policies, and excise duty adjustments. As the company continues to invest in its premium portfolio, the ability to manage raw material costs, such as the prices of extra neutral alcohol (ENA) and packaging materials, will be essential for sustaining these profit margins. Moving forward, the key indicators to track will be the consistency of volume growth in the premium segment and whether the company can maintain these elevated margins if input costs fluctuate throughout the year.