1. Opening Hook
While most FMCG companies are blaming “urban slowdown” and praying to the consumption gods, Radico Khaitan Limited just delivered its highest-ever quarterly volumes. Apparently, whisky didn’t get the memo about weak demand.
Q3 FY26 wasn’t just good — it was “define a new baseline” good. Volumes at 9.75 million cases. Revenue at ₹1,547 crore. EBITDA at ₹265 crore. And margins expanding like wedding guest lists in peak season.
Premiumisation is no longer a buzzword here; it’s showing up in the P&L with 350 bps gross margin expansion. Add benign raw material costs and improving mix, and suddenly the earnings look suspiciously predictable.
But before you declare this a straight-line growth story, wait till we decode Andhra, Maharashtra, Scotland, and Tequila ambitions.
Read on. It gets interesting — and slightly intoxicating.
2. At a Glance
- Volumes up 16.7% – Highest-ever 9.75 million cases; the factory clearly skipped its holiday.
- Net Revenue ₹1,547 crore – Premium bottles doing premium billing.
- Gross Margin 46.9% (+350 bps YoY) – ENA behaved, grain cooperated, mix did the heavy lifting.
- EBITDA Margin 17.2% (+300 bps YoY) – Operating leverage finally clocked in on time.
- Prestige & Above +26% volume – The rich are drinking up, quite literally.
- Andhra Market Share 26% (vs 15% YoY) – From participant to state leader.
- Net Debt down ₹209 crore – Debt packing its bags; FY27 may see it gone entirely.
3. Management’s Key Commentary
“The third quarter represents a defining phase of acceleration for Radico Khaitan.”
(Translation: This wasn’t a fluke. Please update your models.) 😏
“We delivered our highest-ever total IMFL volume of 9.75 million cases.”
(Translation: Volume growth + premiumisation — rare combo unlocked.)
“Gross margin improved 350 bps YoY, with 225 bps from raw material.”
(Translation: ENA prices behaved. We happily took credit.)
“We are not seeing any kind of aggressive pricing activity.”
(Translation: No one is foolish enough to start a price war in premium.)
“On-trade is about 6–7% of sales, but critical for imagery.”
(Translation: Weddings and five-star bars build brands faster than discount shelves.) 🍸
“We expect to be debt-free by FY27.”
(Translation: Cash flows are real. Balance sheet glow-up underway.)
“Luxury portfolio should be close to ₹500 crores this year vs ₹340 crores last year.”
(Translation: Luxury is scaling. This is no longer experimental revenue.)
“We have created a 100% subsidiary in Scotland.”
(Translation: When Scotch is in glut, you quietly secure supply optionality.) 🥃
“We do not chase volumes; we build brands.”
(Translation: Growth, yes. Discounting, no. Ego, maybe.)
4. Numbers Decoded
Metric Q3 FY26 YoY Change What It Really Means
---------------------------------------------------------------------------------------
IMFL Volume 9.75 mn cases +16.7% Scale + premium push
Prestige & Above Volume +26% Strong mix Margin engine firing
Gross Margin 46.9% +350 bps 225 bps RM, 125 bps mix
EBITDA Margin 17.2% +300 bps Operating leverage visible
A&SP Spend 6.9% sales +140 bps YoY Branding muscle flexed
Luxury Revenue (9M FY26) ~₹500 cr run vs ₹340 cr LY Premium scaling fast
Exports 8% of revenue Stable growth Global optionality
Net Debt Reduction ₹209 cr (YTD) Lower leverage FY27 debt-free target
Premiumisation contributed 125 bps to gross margin. Raw material softness did the rest.
Sequentially, mix played a bigger role — meaning this isn’t just commodity luck.
5. Analyst Questions
Andhra sustainability?
Management: Maintain share, push premium.
(Translation: 26% share is lovely; let’s not get greedy.)
Maharashtra disruption?
Industry down ~20% due to MML policy.
Radico launching via JV.
(Translation: If you can’t beat the regulation, partner into it.)
Scotland subsidiary — acquisition coming?
Not in a hurry. Optionality only.
(Translation: Watching for distressed barrels, not trophy assets.)
Margins outlook?
125 bps improvement annually for next two years.
(Translation: Late teens EBITDA margin is the new north star.)
Cash post debt-free?
Likely dividends.
(Translation: Shareholders may get a toast.)
6. Guidance & Outlook
Management sees raw material costs “stable to benign.” Always comforting words in a commodity-sensitive business.
EBITDA margins are guided to improve ~125 bps annually for the next two years, targeting late-teen margins. Assumes continued premium mix improvement and no regulatory curveballs. Bold — but not reckless.
Luxury portfolio
