At a Glance
Radico Khaitan’s Q1 FY26 results hit the market with a blend stronger than its 8PM whisky. Net Profit jumped to ₹133 crore (up 81.6% YoY) on revenue of ₹1,506 crore (up 32.5% YoY). The launch of its luxury vodka “The Spirit of Kashmyr” stirred up premium market buzz, but the stock’s P/E of 89.7 is enough to give investors a hangover. Add a tax reassessment expense of ₹6.99 crore lurking in notes, and this cocktail isn’t for the faint-hearted.
Introduction
Radico Khaitan, India’s OG liquor giant, has been around since 1943 – long before craft gins and Instagram mixologists existed. Famous for mass-market hits like 8PM Whisky and Magic Moments Vodka, Radico has recently turned into a premium play, chasing high-margin segments like luxury vodka and single malts.
Q1FY26 proves the premium strategy is working: sales and profits soared, even as competition from United Spirits and Allied Blenders heats up. However, the stock is now priced like it’s selling limited edition Scotch at duty-free. Investors have to ask – is the rally liquid gold or just froth?
Business Model (WTF Do They Even Do?)
Radico’s game is simple yet intoxicating:
- IMFL Manufacturing: Whiskies, vodkas, rums, gins, and brandy.
- Premiumisation: Pushing high-margin premium brands.
- Exports: Selling to 100+ countries.
- CSD Supplies: Selling to armed forces canteens – steady business.
It’s a brand play rather than just a manufacturing story. With names like Rampur Indian Single Malt and the newly launched “The Spirit of Kashmyr” luxury vodka, Radico is milking India’s premium alcohol wave.
Financials Overview
Q1 FY26 Results:
- Revenue: ₹1,506 crore (+32.5% YoY)
- EBITDA: ₹232 crore (margin 15%)
- Net Profit: ₹133 crore (+81.6% YoY)
- EPS: ₹9.96
FY25 Snapshot:
- Revenue: ₹5,221 crore
- PAT: ₹402 crore
- EPS: ₹30.05
- OPM: 14%
Margins are improving as premium sales rise, but a looming tax expense could hit bottom lines in coming quarters.
Valuation
- P/E: 89.7 (industry avg ~60)
- P/B: 13.6 (crazy high)
- EV/EBITDA: ~45x (premium pricing)
Fair Value Estimate:
- P/E Method: EPS FY26E ~₹40, fair P/E 50–60 → ₹2,000–₹2,400
- EV/EBITDA: Sector avg 30x → Fair value ₹2,100–₹2,300
- DCF: Aggressive assumptions needed to justify ₹2,700+
Fair Value Range: ₹2,100–₹2,400
(Current price ₹2,732 – priced for perfection)
What’s Cooking – News, Triggers, Drama
- New Launch: “The Spirit of Kashmyr” – saffron-infused vodka, priced ₹2,500–₹3,000, targeting premium segment.
- Tax Hit: ₹6.99 crore reassessment expense disclosed – may impact future earnings.
- Premium Push: Rampur Malt and luxury vodkas driving margin expansion.
- Global Expansion: Exports growing rapidly.
- Trigger: Sustained premiumisation & tax clarity.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 4,605 |
| Liabilities | 1,914 |
| Net Worth | 2,691 |
| Borrowings | 750 |
Commentary: Healthy balance sheet, low leverage (D/E ~0.3). Can fund growth comfortably.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Ops | 224 | 166 | 362 |
| Investing | -684 | -226 | -171 |
| Financing | 482 | 24 | -237 |
Observation: Strong operating cash, heavy capex in past (premium plants), now stabilising.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 13.6% |
| ROCE | 16.2% |
| P/E | 89.7 |
| PAT Margin | 7.9% |
| D/E | 0.3 |
Verdict: Returns are decent, but valuation is stretched like a cocktail umbrella in a hurricane.
P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 3,133 | 4,106 | 5,221 |
| EBITDA | 359 | 507 | 757 |
| PAT | 204 | 256 | 402 |
Commentary: Strong revenue CAGR (21%) and profit CAGR (52% TTM). Premiumisation is paying off.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| United Spirits | 12,069 | 1,630 | 59.8 |
| United Breweries | 9,304 | 466 | 110.6 |
| Allied Blenders | 3,685 | 239 | 60.2 |
| Radico Khaitan | 5,221 | 402 | 89.7 |
Roast: Radico’s profits are smaller, but P/E is almost as tipsy as UBL’s.
Miscellaneous – Shareholding, Promoters
- Promoters: 40.2%
- FIIs: 17.8% (slight drop)
- DIIs: 26% (increasing stake)
- Public: 16%
- Buzz: FIIs trimmed, DIIs added – mixed sentiment.
EduInvesting Verdict™
Radico Khaitan is riding India’s premium alcohol wave like a rockstar at a whiskey tasting. Revenue growth is solid, margins improving, and new launches like luxury vodka show strong brand evolution. However, the stock is priced to perfection, with a P/E that assumes flawless execution.
SWOT
- Strengths: Strong brands, premiumisation strategy, global presence.
- Weaknesses: High valuation, low ROE vs peers.
- Opportunities: Premium segment growth, export expansion.
- Threats: Tax risks, raw material inflation, competition from global players.
Final Word: Excellent business, intoxicating growth, but at ₹2,732 you’re paying for the champagne while drinking domestic whiskey. Great hold, risky fresh buy.
Written by EduInvesting Team | 31 July 2025SEO Tags: Radico Khaitan, IMFL, Liquor Stocks, Premium Alcohol, Luxury Vodka
