Radico Khaitan delivered exceptional financial results in Q1 FY27, with consolidated net profit soaring 76% year-on-year to ₹229.60 crore compared to ₹130.52 crore in the corresponding quarter of the previous year. According to the company's BSE filing, this represents the highest ever volume, top line and profitability in the company's history. The strong performance was driven by premiumisation strategies and disciplined cost management, positioning the company well for future growth in the Indian spirits industry.
The company's revenue from operations increased 13.22% to ₹5,867.69 crore in Q1 FY27, up from ₹5,182.30 crore in the same quarter of the previous fiscal year. As reported by ETRetail, this growth was significantly boosted by a 35.8% increase in Prestige and Above brand sales, with these premium brands contributing ₹970 crore in net sales and 76.8% to total IMFL sales value. The company's total IMFL volume increased by 2.8% to 10 million cases during the quarter.
Gross margin expanded significantly to 49.1% during the quarter, representing a 610 basis points expansion year-on-year and 110 basis points quarter-on-quarter improvement. According to the company's earnings statement, this margin expansion was driven by a relatively benign raw material scenario coupled with ongoing premiumisation. Total expenses increased 8.53% to ₹5,571.64 crore, while the company maintained strong operational leverage despite recent volatility in packing material prices resulting in approximately ₹30 crore financial impact. The company expects to deliver EBITDA margin of around 20% for full year FY2027.
Radico Khaitan's annual performance for FY26 demonstrated remarkable growth, with consolidated revenue increasing 24.72% to ₹6,050.43 crore from ₹4,851.15 crore in FY25. Net profit more than doubled, increasing by 73.54% to ₹598.96 crore from ₹345.13 crore in the previous year. The company's Return on Equity (ROE) improved significantly to 18.23% in FY26 from 12.55% in FY25, while Earnings Per Share (EPS) climbed to ₹45.16 from ₹25.84. Shares surged 2.05% to ₹4,541.20 in early trading, reflecting strong investor sentiment and confidence in the company's premiumisation strategy. The stock is currently among the top gainers on the Nifty Midcap 150 index, with current market sentiment remaining very bullish.
