This article first appeared on GuruFocus .
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Net Revenue:1547 crores for Q3 FY26.
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EBITDA:265 crores for Q3 FY26.
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Volume:9.75 million cases, reflecting 16.7% year-on-year growth.
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Gross Margin:46.9%, a 350 basis point expansion year-on-year.
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EBITDA Margin:Expanded by 300 basis points to 17.2% year-on-year.
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Net Debt Reduction:Reduced by 209 crores since March 25.
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Royal Grantham Co. Whiskey Growth:Over 50% growth in Q3.
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Magic Moment Vodka Sales:Crossed 1,050 crores in the nine-month period.
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After Dark Whiskey Growth:40% year-on-year growth in Q3.
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Regular Category Volume Growth:33% in Q3.
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Market Share in Andhra Pradesh:Increased from 15% to 26% year-on-year.
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Release Date: January 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Radico Khaitan Ltd ( BOM:532497 ) achieved its highest-ever quarterly performance with volumes of 9.75 million cases, net revenue of 1547 crores, and EBITDA of 265 crores.
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The company experienced a significant margin expansion, with gross margin improving by 350 basis points year-on-year, driven by a favorable raw material environment and premiumization.
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Radico Khaitan Ltd ( BOM:532497 ) saw strong growth in its premium and luxury portfolio, with brands like Royal Grantham Co. Whiskey and Magic Moment Vodka showing impressive growth rates of over 50% and 18% respectively.
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The company has successfully increased its market share in key states such as Andhra Pradesh, Uttar Pradesh, and Telangana, with Andhra Pradesh market share rising from 15% to 26%.
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Radico Khaitan Ltd ( BOM:532497 ) is on track to become debt-free by FY27, with net debt reduced by 209 crores since March 2025, reflecting strong cash flow generation.
Negative Points
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The company faces challenges in the Maharashtra market due to new regulations favoring local companies, resulting in a decline in industry volumes by about 20%.
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There are ongoing collection issues in Telangana, although recent payments have been received, the situation remains a concern.
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Radico Khaitan Ltd ( BOM:532497 ) is experiencing competitive pressures in the country liquor segment in Uttar Pradesh, although it maintains a leading market share.
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The company is cautious about potential pricing pressures in the market as competitors may become more aggressive due to improved gross margins across the industry.
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Despite strong performance, sustaining high growth rates in markets like Andhra Pradesh may be challenging due to the high base effect.
Q & A Highlights
Q: Apart from Andhra Market, which markets have you grown faster than the company average, and where have you gained market share? A: Our growth has been strong in Andhra, Uttar Pradesh, Telangana, Rajasthan, Madhya Pradesh, and Haryana. In Uttar Pradesh, we maintain the highest market share in the country liquor segment despite competition. In Telangana, despite a slow start due to a lottery system, we saw high single-digit growth by the end of the quarter.
Q: With the expansion in gross margins, is there a risk of increased competition or aggressive pricing from other players? A: We believe alcohol is a luxury product, and brand building is not achieved through price cuts. Radico Khaitan focuses on building brands rather than chasing volumes, and we do not foresee aggressive pricing affecting our strategy.
Q: Can you explain the rationale behind setting up a subsidiary in Scotland and any investment plans associated with it? A: As the largest importer of matured malt spirits from Scotland, setting up a subsidiary aligns with our focus on malt-based alcohol. This move allows us to explore options like buying fresh malt, maturing it, and potentially investing in malt facilities. Initial investments will be small, with plans to expand as value creation opportunities arise.
Q: What are your plans for the new initiatives in the P&A segment over the next 12-15 months? A: We plan to focus on consolidating and expanding distribution for our recent brand launches, such as Indian single malts and luxury vodkas. Our strategy is to build these brands into significant players in the luxury space, similar to our success with Jaisalmer Indian Craft Gin.
Q: How is the on-trade segment performing, and what percentage does it contribute to total sales? A: The on-trade segment is a strategic focus, contributing about 6-7% of total sales. We have strengthened our on-trade team and increased visibility in key outlets, achieving significant results in brand presence and consumer engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
