Radico Khaitan reports strong Q2 FY2026 growth driven by premiumization

Radico Khaitan reported total IMFL volume of 9.34m cases in Q2 FY2026, a 38% year-on-year growth. The Prestige & Above (P&A) category saw 22% volume growth and 24% value growth, reaching its highest-ever quarterly P&A volume. The regular category volume grew sharply by 80% after nine quarters of degrowth. Magic Moments Vodka achieved nearly 20% volume growth, selling around 2m cases, and Royal Ranthambore Whisky surged over 67% in Q2, securing a 10% market share in the CSD segment during September 2025.

The company's gross margin stood at 43.6% in Q2 FY2026, remaining stable year-on-year and up from 43% in Q1 FY2026. EBITDA margin expanded by 126 basis points to 15.8%, reflecting operational leverage benefits. Net debt decreased by INR 146 crore since March 2025, with Radico Khaitan aiming to become debt-free by FY27. The company also noted a significant increase in market share in Andhra Pradesh, rising from approximately 10% last year to over 30% in Q2 FY2026, making it the leading player in the state.

The Sitapur distillery is operating at 95% capacity, contributing strategically to the company’s branded business, which has grown by 38% in the first half of the year. The company expects the EBITDA margin to increase by 150 basis points in the current fiscal year and an additional 125 basis points year-on-year over the next two years, reaching late teens. The luxury and semi-luxury portfolio is targeted to achieve INR 500 crore in revenue this year, with growth across all states.