Radico Khaitan LtdRecord quarter as P&A guidance upgraded to 25%+ and EBITDA margin hits all-time high

Radico Khaitan delivered its strongest quarter yet, with highest-ever quarterly volume of 10 million cases, revenue of Rs. 1,684 crore and EBITDA of Rs. 348 crore.

EBITDA margin expanded 536 bps YoY to a record 20.7%, and gross margin expanded 610 bps to 49.1%, driven by the Prestige & Above (P&A) portfolio's 36% YoY volume growth -- led by Magic Moments vodka, which grew volumes 43% and value 51% as flavored vodka rose to 75% of its mix. India's vodka category has grown over 20% CAGR since FY22 and now accounts for 6.1% of the IMFL industry, up from 4.6% a year ago, a structural shift management expects to continue for years.

State-level policy reforms are also playing out favourably: Radico's P&A portfolio grew 83% in Karnataka against 9% industry growth after pricing rationalization, while Tamil Nadu's potential retail liberalization is flagged as a meaningful future opportunity. Net debt fell Rs. 138 crore since March, putting the company on track to be debt-free by Q2 FY27. On the back of this performance, management raised its FY27 P&A volume growth guidance from 20% to over 25% and reaffirmed its ~20% EBITDA margin target, already exceeded this quarter.