Radico Khaitan

“And maybe down the line, 1 quarter or towards the end of the year, we will look at what the guidance for the next year is, but margins shall continue to expand.”

“We remain disciplined in our approach to capital allocation, with capex directed towards maintenance, operational efficiencies and essential capacity optimization.”

“The Prestige & Above category continued its strong upward trajectory, recording highest ever volume of 5.28 million cases at 36% volume growth.”

“Regular volume degrowth was due to a higher base of Q2 FY26 after the change in the route-to-market in the state of Andhra Pradesh and the impact of the policy change in Maharashtra and Karnataka.”

“To give you an example, say Radico in the current quarter, we have grown more than 100% of our premium volumes there.”

“I think we are more than happy because the industry itself has grown only 5.8% to 6% in P&A. We have a 20% non-vodka growth, I think it's a commendable achievement.”

“And vodka, we have grown by about 49%.”

“To answer your first question, the U.K. FTA, we are seeing about close to 8% to 10% reduction in the BIO.”

“In 2025, it was 3.7%; in 2026, it became 4.5%; and this quarter Q2, it is 6.3%.”

“So, we see that, in the next 3 to 5 years, the vodka should outpace any of the category, especially the flavored vodka.”

“Even a 1% shift adds close to about 4 million to 4.5 million cases of vodka.”

“So, we believe that the strong momentum at the top end will continue.”

“On the profitability front, Gross margin during the quarter is 48.0%, representing a 440 basis point expansion on year-on-year basis and 109 basis point compression on quarter-on-quarter basis.”

“Product mix and premiumization added 510 basis points and the price increases added 85 basis points.”

“Gross margin was impacted sequentially due to cyclical brand mix change and inflation in grain prices.”

“This was offset to a certain extent by the recent volatility in the packaging material prices which resulted in approximately Rs. 27 crores of financial impact.”

“To mitigate the impact of increasing grain prices to a large extent, we had built up higher level of stocks, which has supported us through Q2 FY27.”

“This is temporary build, and we expect it to normalize during the second half of this year.”

“So, I think among the new launches, which we are most excited about, I think the Virasat Indian Single Malt because we didn't have a malt in the affordable luxury that is about Rs. 3,500 to Rs. 4,000 a bottle.”

“So, there will be one, two more exciting flavors which will be added on.”

“In August, we launched Magic Moments Aam Panna, bringing a nostalgic flavour cherished in every Indian household into a contemporary format, supported by a digital-first campaign.”

“Effective today, Dilip Banthiya joins the Board as Executive Director and CFO, bringing his deep financial, capital allocations and alcobev industry experience to the Board.”

“Saket Somani has been elevated to Deputy CFO with an expanded mandate across strategy, financial planning, Investor Relations and digital transformation.”

“This is an industry issue which DRI is studying and we don't know how far it , but we are confident that what we are doing is as per the current laws.”

“At the same time, on packaging material, there has been an impact on account of the West Asia war, and particularly on the glass bottle and the PET resin prices and also some laminate prices.”

“So as such, we don't see so much of a challenge in our portfolio at all.”

“And as far as Telangana goes, we have represented to the government, but it all depends on the government about the price issue.”

“The liquor revenue in Uttar Pradesh is very high, close to about Rs. 60,000 crores, Rs. 65,000 crores. It's a very big business. So, I think, the system is very well set. So, I think the elections also, it's not a case of worry at all.”

“During the quarter, IMFL volume stood at over 10 million cases, revenue at Rs. 1,746 crores and EBITDA at Rs. 356 crores, with an EBITDA margin of 20.4%.”

“As the premium and luxury portfolio continue to expand, we expect our capital efficiency and return ratio to improve further.”

“Internationally, we also became the first Indian spirits company to be present across 4 major U.K. airports”

“The second quarter of FY27 has been the strongest in our history with record volume, revenue and profitability.”

“During Q2 FY27, we delivered a strong all-round performance, with total IMFL volumes of over 10 million cases, reflecting a 7% year-on-year growth.”