Radico Khaitan lifts FY27 premium portfolio growth target to 25%
The liquor maker raised its FY27 Prestige & Above volume-growth guidance from 20% to 25%, while retaining its 20% EBITDA-margin target. Strong premium and luxury demand, alongside growth in vodka, white spirits and on-trade channels, is expected to support the upgrade.
What happened
Radico Khaitan raised FY27 Prestige & Above portfolio growth guidance to 25% and reiterated a 20% EBITDA-margin target, citing strong premium and luxury demand.
Key facts
- FY27 Prestige & Above volume-growth guidance raised from 20% to 25%
- FY27 EBITDA-margin guidance: 20%
- April-June revenue: ₹5,867 crore
- April-June net profit: ₹230 crore
- P&A segment growth: 36%
- P&A volume: 5.2 million cases
- EBITDA: ₹348 crore, up 50%
- PAT: ₹225 crore, up 70%
- EBITDA margin: 20.7%, versus 15.6%
- Vodka share of Indian spirits market: 6%, versus 3.7% two years ago
- On-trade share of Indian market: 5-6%
Why this matters
Stronger premium and on-trade momentum makes bolt-on brands, distribution partnerships, and capability investments in vodka, white spirits, and luxury occasions strategically more attractive.
What to watch
- Quarterly Prestige & Above volume growth versus the 25% FY27 target and whether growth is broad-based across brands.
- EBITDA-margin trajectory, advertising and promotion intensity, and any increase in working-capital needs.
- Premium portfolio realization growth versus volume growth, indicating whether mix and pricing are contributing.
- On-trade channel growth, new state launches/registrations and distribution expansion.
- ENA, glass, packaging and agave/grain input-cost trends, plus state excise-duty or MRP-policy changes.
- Competitor premiumization activity and market-share movement in Indian-made foreign liquor, vodka and white spirits.
- Increase marketing, activation and distribution investment behind Prestige & Above, especially premium whisky, vodka and white-spirit labels.
- Prioritize on-trade placements, premium outlets and metro/Tier-1 consumption occasions to improve brand visibility and mix.
- Expand capacity, bottling availability and state-by-state registrations for faster-growing premium SKUs.
- Use premium mix gains to defend EBITDA margin while selectively taking price increases where state regulations permit.
- Potentially redirect capital and management attention away from lower-margin mass segments toward luxury and semi-luxury portfolios.