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Radico Khaitan Ltd
NIFTY 200 NIFTY 500 Midcap 100 Midcap 150 FMCG
₹46,405 Cr
Market Cap
75.2
P/E
1.83
PEG
24.2%
ROCE
20.3%
ROE
0.15
D/E
11.8%
OPM
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📈 Price History
Ratio Health
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About

Incorporated in the year 1943, Radico Khaitan is one of the most recognised IMFL (Indian Made Foreign Liquor) brands in India. The company was initially known as Rampur Distillery Company and was focussed on distillation and bottling for branded players and canteen stores of armed forces. Later on in the year 1997, Radico Khaitan ventured into its own branded IMFL products and launched its first brand 8PM whisky which became its millionarie brand within a year of its launch.

✓ Strengths 1
  • Company has reduced debt.
! Concerns 1
  • Stock is trading at 14.0 times its book value
Key Ratios Snapshot
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📈 Growth Pattern
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Strong beat: Revenue grew 15.3% YoY, EBITDA margin expanded 565 bps to 19.0%, and Total Comprehensive Income nearly doubled to ₹176.5 Cr. quarter Investor Presentation One-Pager Mar 2026
Revenue
₹1,503.7 Cr
+15.3% YoY; net revenue from operations
EBITDA Margin
19.0%
+565 bps YoY; absolute EBITDA ₹286.3 Cr
PAT
₹176.5 Cr
+99.6% YoY; Total Comprehensive Income
Prestige & Above Volume
4.35 Mn Cases
+27.9% YoY; 72.2% of IMFL revenue
What Went Right
  • Prestige & Above volume grew 27.9% YoY to 4.35 Mn cases, driving revenue mix to 72.2% of IMFL revenue.
  • Gross margin expanded 453 bps YoY to 48.0% due to benign raw materials and premium mix.
  • EBITDA margin expanded 565 bps YoY to 19.0%, with absolute EBITDA of ₹286.3 Cr.
  • Total Comprehensive Income nearly doubled to ₹176.5 Cr, up 99.6% YoY.
  • Net debt reduced by ₹329.5 Cr since Mar 2025 to ₹244.1 Cr; management expects net debt free by H1 FY2027.
What to Watch
  • Regular volume declined 10.2% YoY due to route-to-market changes in Andhra Pradesh and policy changes in Maharashtra and Karnataka.
  • QoQ revenue fell 2.8% from Q3, indicating seasonal softness or competitive pressure.
  • A&SP spend was only 6.7% of IMFL sales in Q4, at the low end of the 6-8% target range, potentially underinvesting in brand support.
  • Total IMFL volume growth was just 4.0% YoY (9.52 Mn cases), dragged by regular segment weakness.
  • No explicit numeric guidance for FY27 was provided, only qualitative confidence in margin expansion.
Investor Lens
The premiumisation thesis remains intact: Prestige & Above volume grew 28% and now represents 72% of IMFL revenue, driving a 453 bps gross margin expansion. Management's confidence in sustaining margin expansion is supported by operating leverage and benign raw materials, but the regular segment's 10% volume decline highlights regulatory vulnerability in key states like Andhra, Maharashtra and Karnataka. Net debt reduction of ₹330 Cr in the year strengthens the balance sheet, with a stated target of net debt free by H1 FY27. Watch for FY27 margin sustainability if raw material tailwinds fade, and whether A&SP spend rises to the upper end of the 6-8% band to defend growth. The geopolitical risk in West Asia flagged by the Chairman is worth monitoring, though the company remains confident in the trajectory.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Exceptional 94.6% profit surge and 500bps margin expansion drive strong operational performance
Revenue
Revenue reached ₹1,504.0 Cr, marking a solid 15.3% YoY growth compared to Mar 2025. However, there was a minor sequential softening of 2.8% from the Dec 2025 quarter.
Profitability
Net profit nearly doubled YoY to ₹179.0 Cr, supported by a significant jump in EPS from 6.88 to 13.40. This profitability surge is underpinned by strong operational leverage and stable tax incidence at 24%.
Margins
Operating margins expanded dramatically to 19% from 14% YoY and 17% QoQ. This led to a substantial 59.6% increase in absolute operating profit, reaching ₹284.0 Cr.
Balance Sheet
The balance sheet remains lean with total borrowings of ₹498.0 Cr against reserves of ₹3,289.0 Cr. A low Debt-to-Equity ratio of 0.21 reflects conservative leverage and high financial stability.
Key Risks
The primary risk is the very high PE ratio of 85.4, which prices in significant future growth. Additionally, the sequential revenue dip and low ROCE of 16.2% relative to premium valuations warrant observation.
Outlook
The outlook is highly positive as the company shifts toward a higher-margin product profile, evidenced by the 500bps YoY margin expansion. Future performance will depend on sustaining this premiumization trend while scaling return ratios.
Generated by AI · Mar 2026 results · Not investment advice
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