Radico Khaitan Ltd
NSE:RADICO
Radico Khaitan Ltd
Founded in 1943, Radico Khaitan Ltd. began as a humble distillery and has evolved into one of India’s largest spirits companies. The journey of Radico Khaitan is characterized by a strategic shift from being a bulk manufacturer to becoming a renowned brand with a diverse portfolio of Indian Made Foreign Liquor (IMFL). Among its acclaimed offerings are the flagship brands 8PM Whisky, Magic Moments Vodka, and Morpheus Brandy, each carving out substantial market shares in their respective segments. The company’s success is rooted in its ability to blend traditional craftsmanship with modern techniques, ensuring consistent quality and taste that has resonated with consumers globally. Through its state-of-the-art manufacturing facilities, Radico Khaitan not only satisfies domestic demand but also caters to international markets, illustrating its robust operational capabilities and brand equity.
Radico Khaitan's business model centers around leveraging its extensive distribution network, which stretches across India and into several overseas markets. This expansive reach allows the company to tap into diverse consumer bases and efficiently channel its products into retail outlets and establishments. By nurturing relationships with distributors and continuously innovating in its product line—whether through new branding strategies or by launching variants of existing products—Radico Khaitan ensures steady revenue streams and market relevance. Additionally, the company invests substantially in marketing and brand-building activities, reinforcing its status as a household name. This is complemented by an agile production process that responds adeptly to shifts in consumer preferences, cementing Radico Khaitan’s position as a pivotal player in the spirit industry's growth narrative.
Founded in 1943, Radico Khaitan Ltd. began as a humble distillery and has evolved into one of India’s largest spirits companies. The journey of Radico Khaitan is characterized by a strategic shift from being a bulk manufacturer to becoming a renowned brand with a diverse portfolio of Indian Made Foreign Liquor (IMFL). Among its acclaimed offerings are the flagship brands 8PM Whisky, Magic Moments Vodka, and Morpheus Brandy, each carving out substantial market shares in their respective segments. The company’s success is rooted in its ability to blend traditional craftsmanship with modern techniques, ensuring consistent quality and taste that has resonated with consumers globally. Through its state-of-the-art manufacturing facilities, Radico Khaitan not only satisfies domestic demand but also caters to international markets, illustrating its robust operational capabilities and brand equity.
Radico Khaitan's business model centers around leveraging its extensive distribution network, which stretches across India and into several overseas markets. This expansive reach allows the company to tap into diverse consumer bases and efficiently channel its products into retail outlets and establishments. By nurturing relationships with distributors and continuously innovating in its product line—whether through new branding strategies or by launching variants of existing products—Radico Khaitan ensures steady revenue streams and market relevance. Additionally, the company invests substantially in marketing and brand-building activities, reinforcing its status as a household name. This is complemented by an agile production process that responds adeptly to shifts in consumer preferences, cementing Radico Khaitan’s position as a pivotal player in the spirit industry's growth narrative.
Record Quarter: Radico Khaitan posted its highest-ever quarterly volumes at 9.75 million cases and net revenue of INR 1,547 crores, with EBITDA of INR 265 crores.
Margin Expansion: Strong premiumization, stable raw material costs, and operating leverage drove gross margin to 46.9% (up 350 bps YoY) and EBITDA margin to 17.2% (up 300 bps YoY).
Premium Brands Drive Growth: Prestige & Above segment saw 26% volume and 29% value growth, with strong performances from brands like Royal Ranthambore, Magic Moments, and After Dark.
Market Share Gains: Significant share gains in Andhra Pradesh (market share up from 15% to 26%), as well as strong growth in Uttar Pradesh, Telangana, Rajasthan, MP, and Haryana.
Balance Sheet Strength: Net debt reduced by INR 209 crores since March '25; company expects to be debt-free by FY '27.
International Expansion: Board approved setting up a 100% subsidiary in Scotland to secure malt supply and explore future opportunities.
Optimistic Outlook: Management expressed confidence in margin sustainability, strong cash flow, and continued profitable growth.