Radico Khaitan, the granddaddy of India’s IMFL scene (founded in 1943), is pulling a cocktail trick: revenues at ₹5,221 Cr, profits at ₹407 Cr, margins looking decent, and yet the P/E is a drunken 94x. Sales grew 21% last year, profit jumped 52% TTM, but net debt too ballooned from ₹116 Cr (FY22) to ₹750 Cr (Q3 FY25). Basically, this distillery knows how to throw a party—only problem is, they’ve started putting it all on credit.
2. Introduction
Once upon a time, Radico was just bottling booze for army canteens. Fast forward to 1997, they dropped 8 PM Whisky—and it went viral faster than an Insta reel of Virat Kohli breaking a bat. From that point, Radico went from background bartender to DJ of the IMFL club.
Today, Radico isn’t just serving the Indian middle-class whisky drinker; it’s also lording over vodka (59% share), gin (50% share), and premium brandy (64% share). Magic Moments vodka is basically the Maggi noodles of college fests—ubiquitous, cheap, and surprisingly reliable.
But while the premiumization party is making margins sparkle, the P/E ratio is so high that even Dalal Street’s seasoned drinkers are feeling tipsy. And yes, while the brands look premium, the debt meter is rising like a bar tab nobody checked before ordering that third round of tequila shots.
So the million-rupee question: is Radico a classy Rampur Single Malt, or is it just an Old Monk in a fancy decanter?
3. Business Model – WTF Do They Even Do?
Radico’s business model is as simple (and as dangerous) as a bottomless brunch deal. They make alcohol, sell alcohol, and use the profits to market more alcohol. Repeat.
Here’s the breakdown:
Prestige & Above Brands (49% of 9M FY25): Rampur Indian Single Malt, Jaisalmer Craft Gin, Morpheus Brandy—basically the “Instagram-worthy” drinks.
Regular Brands (19%): 8 PM Whisky, Contessa Rum, Old Admiral. More like “Bhai ka daaru peg.”
Non-IMFL (32%): Ethanol, ENA, and bulk alcohol. The behind-the-scenes money-spinner.
The company has 4 distilleries in UP, a JV in Maharashtra, and 43 bottling units nationwide. They push booze through 1 lakh retail outlets and 10,000 on-premise locations—if you’re drinking in India, odds are Radico poured your peg.
They spend ~6% of IMFL revenues on advertising—so if you’ve ever heard a whisky ad disguised as “responsible drinking awareness,” that’s Radico doing jugaad with ASCI rules.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
1,506 Cr
1,137 Cr
1,304 Cr
32.5%
15.5%
EBITDA
232 Cr
149 Cr
178 Cr
55.7%
30.3%
PAT
133 Cr
76 Cr
91 Cr
75.0%
46.2%
EPS (₹)
9.96
5.71
6.78
74.5%
46.9%
Commentary: The QoQ jump in EBITDA is juicier than a double peg. Realizations are rising (₹1,597/case vs ₹1,430 last year), but volumes are dropping (22.2 Mn cases vs 28.7 Mn last year). Translation: Indians are drinking less but drinking better. Premiumization is working, but let’s not forget—volumes declining in alcohol is as rare as Salman Khan admitting guilt.
5. Valuation Discussion – Fair Value Range
P/E Method: EPS = ₹30.1 (FY25), CMP = ₹2,871. At industry P/E of 33 → Fair Value = ~₹990. At 2x industry premium (because Radico sells “luxury”) → ~₹1,980.
EV/EBITDA Method: EV = ₹39,077 Cr, EBITDA FY25 = ₹757 Cr → EV/EBITDA = 51x. Industry EV/EBITDA = 18–22x → Fair EV = ₹13,600–16,600 Cr. Equity Value = ~₹13,000–16,000 Cr → Fair Value per share = ₹970–1,200.
