Radico Khaitan Q1 FY27 Results (NSE: RADICO)
Signal: Margin expansion
The read
Margins inflected further upward — 5th straight quarter of OPM expansion — with EBITDA margin (net rev) reaching 21.15% (+573bps YoY) as premiumisation and operating leverage combined with lower finance costs to deliver 76% PAT growth despite only 12% net revenue growth. The trajectory remains bullish if premium momentum and cost control sustain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,867.69 Cr | +10.4% | +13.2% |
| EBIT | ₹296.05 Cr | +64.5% | |
| Net profit | ₹229.6 Cr | +75.9% | |
| EPS | ₹17.15 | +75.9% | |
| EBIT margin | 17.58% |
P&L walk
Revenue (gross) grew 10.4% YoY to ₹5,86,769 Lakh; net revenue (ex-excise) up 11.8% to ₹1,68,369 Lakh. Gross margin expanded ~610bps YoY to 49.1% on premium mix and stable input costs. EBITDA margin (net) widened 573bps YoY to 21.15%, the 5th consecutive quarter of expansion, driven by operating leverage (opex grew only 15% vs net rev +12%) and lower finance costs. PAT surged 75.9% to ₹22,960 Lakh, EPS ₹17.15.
Key positives
- Gross margin expanded ~610bps YoY to 49.1% (net rev basis) on premium mix and stable input costs.
- EBITDA margin (net rev) expanded 573bps YoY to 21.15% — fifth consecutive quarter of expansion.
- PAT up 75.9% YoY to ₹22,960 Lakh; EPS up 75.9% to ₹17.15.
- Finance costs down 26.9% YoY, supporting bottom-line growth.
- CARE Ratings upgraded outlook to Positive in July 2026.
Key concerns
- Net revenue growth decelerated to +11.8% YoY from ~15-20% in recent quarters, partly due to high base.
- Excise duty remains large at 71.3% of gross revenue, making reported revenue highly dependent on tax rates.
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