Radico Khaitan Q2 FY27 Earnings Call — Analysis (NSE: RADICO)
Radico Khaitan delivered record Q2FY27 results with 36% Prestige & Above volume growth and raised its FY27 P&A volume growth guidance to 30% while holding full-year EBITDA margin guidance at ~20%.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Net Revenue ₹1,746 Cr . Guidance raised — FY27 p&a portfolio volume growth 30% . New story: Premiumization driving margin expansion .
Results
Revenue stood at ₹1,746 Cr with EBITDA of ₹356 Cr (margin 20.4%, +462bps YoY) driven by 36% volume growth in Prestige & Above (5.28 mn cases).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Net Revenue | ₹1,746 Cr | none · Q2FY27 | |
| EBITDA | ₹356 Cr | none · Q2FY27 | |
| EBITDA Margin | 20.4% | +462bps | yoy · Q2FY27 |
| Gross Margin | 48.0% | +440bps | yoy · Q2FY27 |
| Gross Margin | 48.0% | -109bps | qoq · Q2FY27 |
| IMFL Volume | 10.0 million cases | +7% | yoy · Q2FY27 |
| Prestige & Above Volume | 5.28 million cases | +36% | yoy · Q2FY27 |
Guidance
Upgraded FY27 Prestige & Above volume growth guidance to 30% and reaffirmed FY27 EBITDA margin target of ~20% along with 25% value growth in luxury spirits.
What management committed to
- Radico's Prestige & Above portfolio will deliver 30% volume growth during FY27. — 30%, FY27
- Radico's working capital build in H1 FY27 is temporary and will normalize in H2 FY27. — normalized, H2 FY27
- Radico will expand its global travel retail presence to 100 outlets. — 100 outlets, no specific year given
Key themes
Premiumisation surge and category expansion
How the narrative shifted
- Structural vodka multi-year boom: Share achievement upgraded from targeted 6.1% to actual 6.3%; narrative extended from current momentum to a confident multiyear 'trend here to stay' posture.
- Premiumization driving margin expansion: Thread explicitly linked to overcoming the new input cost headwind; upgraded growth guidance strengthens the thesis despite acknowledged macro risks.
- Luxury and single malt portfolio ramp: Luxury portfolio growth reaffirmed at 25% value growth for FY27; Virasat expansion into new states, Rampur and Jaisalmer traction, travel retail target of 100 outlets reinforcing ongoing ramp.
- Debt-free balance sheet and capital discipline: Shift from specific milestone target (net debt free by Q2 FY27) to a broader posture of disciplined capital management and improving capital efficiency.
- Favorable state policy tailwinds (Karnataka, potential Tamil Nadu): Tamil Nadu upgraded from speculative 'large optionality' to a concrete growth story with 20% volume uptick and a digital policy catalyst.
- Brand-led innovation and flavor strategy: Magic Moments Aam Panna launched successfully; Jamun described as a 'craze'; After Dark repack rolled out to 10 states; 8PM Premium Black back in growth; Flavours of India platform expanded as core volume driver.
- Input cost inflation and supply chain volatility: New thread introduced as the primary macro headwind against which the margin guidance must be evaluated, explaining the need for upgraded volume growth to offset input cost pressure.
- U.K. FTA and international brand building: New thread highlighting a significant structural tariff tailwind and international brand-building milestone that strengthens the luxury portfolio narrative.
Operational commentary
- Vodka category share within IMFL expanded structurally from 3.7% in 2025 to 4.5% in 2026 and 6.3% in Q2FY27 (reaching 10% in Maharashtra); Radico's vodka volumes grew 49% YoY.
- Launched Magic Moments Aam Panna in August following strong consumer reception for Jamun; flavoured variants account for ~75% of Radico's vodka portfolio.
- Relaunched After Dark whisky with new packaging and Master Blender endorsement across 10 states, seeing strong initial traction.
- Expanded luxury single malt presence internationally by becoming the first Indian spirits maker listed across 4 major UK airports (Heathrow, Gatwick, Birmingham, Manchester) with a target to reach 100 duty-free locations globally (currently at ~70).
- Working capital increased temporarily in H1FY27 to build strategic inventory of raw materials and packaging materials amid global price volatility, expected to normalise in H2FY27.
Analyst Q&A
Q. What is the status and potential impact of the DRI investigation into Scotch imports under HSN code 2208?
Radico clarified that it imports bulk Scotch under the consistent HSN code 2208 for 10-20 years with complete regulatory compliance, and views the matter as an industry-wide study by DRI and the Ministry of Commerce where Radico foresees no negative impact.
Q. What is driving the repeated guidance upgrades in P&A and how much did state-specific factors like Karnataka contribute?
Abhishek Khaitan highlighted structural shifts toward white spirits (vodka volume grew 49%) and broad-based demand, noting Karnataka premium volumes grew >100% post duty cuts/free pricing, though Saket Somani noted Karnataka saliency is only ~6% of total company volumes.
Q. What is the performance and status of luxury brand Spirit of Kashmyr?
Management declined to provide operational details as the matter is sub judice in court and stated disclosures would be made at the appropriate time.
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