Revenue from operations (excluding excise duty) jumped 11.79% year on year (YoY) to Rs 1,683.69 crore in Q1 FY27.

Profit before tax (PBT) climbed 69.68% YoY to Rs 301.39 crore in Q1 FY27.

EBITDA stood at Rs 348.1 crore in Q1 FY27, recording the growth of 50.9%, compared with Rs 230.7 crore posted in corresponding quarter last year. EBITDA margin improved to 20.7% in Q1 FY27 as against 15.3% in Q1 FY26.

During Q1 FY27, the company's total own volumes rose 6% year-on-year to 9.82 million cases from 9.27 million cases, while total volumes increased 2.8% to 10 million cases. Prestige & Above volumes surged 35.8% to 5.22 million cases, whereas Regular & Others volumes declined 15.1% to 4.61 million cases. As a result, the Prestige & Above segment contributed 53.1% of total own volumes, up from 41.5% a year ago.

IMFL revenue increased 18% to Rs 1,262.5 crore, driven by a 36% jump in Prestige & Above revenue to Rs 970 crore, while revenue from the Regular & Others segment fell 17.3% to Rs 289.3 crore. Non-IMFL revenue declined 3.5% to Rs 421.2 crore. The Prestige & Above portfolio accounted for 76.8% of total IMFL revenue, compared with 66.7% a year earlier, while IMFL contributed 75% of overall revenue from operations, up from 71%.

The company said total IMFL volumes grew 2.8% year-on-year in Q1 FY27, led by a 35.8% increase in the Prestige & Above segment. Volumes in the Regular category declined due to a high base in Q1 FY26 following a change in the route-to-market in Andhra Pradesh, as well as the impact of policy changes in Maharashtra and Karnataka. Net revenue from the Prestige & Above portfolio rose 36% year-on-year, while overall IMFL revenue increased 18%, driven by continued premiumisation. Non-IMFL revenue declined owing to higher captive consumption and lower bulk alcohol sales during the quarter.

Gross margin expanded 610 basis points year-on-year and 110 basis points sequentially to 49.1%, supported by a relatively benign raw material cost environment and an improving product mix. Raw material costs alone contributed 75 basis points to the year-on-year margin expansion. However, volatility in packaging material prices resulted in an estimated financial impact of around Rs 30 crore during the quarter. The company said it continues to monitor the West Asia crisis but remains confident of delivering margin expansion in FY27.

The company added that it will continue to make prudent marketing investments in its core brands and new product launches to sustain growth and market share. Advertising and sales promotion (A&SP) expenditure stood at 6.9% of IMFL sales in Q1 FY27, compared with 5.8% in the year-ago period. It expects A&SP spending to remain in the range of 6% to 8% of IMFL revenue to support sales momentum.

As of 30 June 2026, the company's total debt stood at Rs 212.2 crore, including term loans of Rs 72.1 crore, reflecting a reduction of Rs 57.9 crore in term loans since 31 March 2026. Cash and cash equivalents were Rs 106.1 crore, resulting in net debt of Rs 106.1 crore. The company reduced its net debt by Rs 138 crore during the quarter and expects to become net debt-free by Q2 FY27.

Dr. Lalit Khaitan, Chairman and Managing Director said, 'Carrying forward the momentum of the previous year, we have made a strong start to FY2027, underpinned by sustained premiumisation, disciplined execution and the successful implementation of our long-term strategy. The strong performance of our Prestige & Above portfolio reflects the evolving aspirations of Indian consumers and reinforces our conviction in the strategic direction we have pursued over the years. The encouraging results during the quarter, including margin expansion despite a challenging global environment, reflect not only favourable industry trends but also the unwavering commitment of our employees, business partners and other stakeholders, whose support remains integral to our success.

The operating environment, however, remains dynamic. Geopolitical uncertainties, evolving supply chain disruptions and volatility in certain input costs continue to require agility and prudent risk management. At the same time, the Indian IMFL industry is benefiting from favourable structural tailwinds. Progressive regulatory reforms in key states, an improving policy environment and the sustained shift towards premium brands are creating significant opportunities for companies that have consistently invested in building strong brands with enduring consumer recall and loyalty.

Our optimism is also anchored in the structural strengths we have built over the years. Investments in brand building, strengthening of organisational bandwidth, backward integration, manufacturing capacity and supply chain resilience have enhanced our competitive position and strengthened our ability to respond swiftly to evolving market dynamics. Together with our disciplined approach to capital allocation, these investments provide a robust foundation for sustainable value creation. India's favourable demographics, rising disposable incomes, increasing urbanisation and growing preference for premium experiences continue to present a compelling opportunity for the spirits industry. As one of the country's leading homegrown spirits companies, we are well positioned to capitalise on these trends through innovation, execution excellence and an unwavering focus on consumer preferences. At Radico Khaitan, we remain committed to strengthening our market leadership, investing behind our brands and creating enduring value for all our stakeholders. With a robust portfolio, expanded manufacturing capabilities, a resilient supply chain and a clear strategic roadmap, we look to the future with confidence and optimism.'

Abhishek Khaitan, Managing Director said: 'Our premiumisation strategy continues to deliver strong results as we begin FY2027 with another quarter of robust 36% growth in Prestige & Above segment and significantly improved profitability. Our premium portfolio continued to significantly outpace industry growth, reflecting the strength of our brands, innovation capabilities and disciplined execution. One of the most significant structural shifts underway in the Indian IMFL industry is the rapid growth of the vodka category, with its saliency increasing from 4.6% in Q1 FY26 to 6.1% in Q1 FY27. This reflects changing consumer preferences, evolving consumption occasions and the growing preference for premium white spirits. Vodka's versatility, strong cocktail compatibility and increasing acceptance among younger consumers are driving category expansion, while existing traditional consumers are increasingly choosing vodka across different social occasions.

As the clear market leader, Magic Moments is well positioned to capitalise on this opportunity, delivering an impressive 43% volume growth during the quarter. Our flavour-led innovation strategy continues to differentiate the brand, deepen consumer engagement and reinforce our leadership in this rapidly expanding category. The continued premiumisation of our portfolio has translated into superior business economics and sustained margin expansion. Combined with disciplined cost management and operating leverage, this has further enhanced the quality of our earnings. Within our whisky portfolio, After Dark continues to strengthen its position in one of India's largest and most aspirational whisky segments. The recently introduced contemporary packaging is expected to further enhance the brand's premium appeal and support market share gains. Meanwhile, 8PM Premium Black has sustained its strong growth momentum, reaffirming the growing consumer preference for our premium whisky offerings.

Looking ahead, we remain confident in the long-term growth opportunity for the Indian spirits industry and in the strength of our execution capabilities. We expect our Prestige & Above portfolio to continue delivering strong growth and upgrade our P&A volume growth guidance to over 25% for the full year FY2027. With premium and luxury brands contributing an increasing share of our business, we remain confident of continued margin expansion and expect to deliver EBITDA margin of around 20% for the full year FY2027, while strengthening our portfolio of market-leading brands and creating sustainable long-term value for all our stakeholders.'

Radico Khaitan is one of India's leading manufacturers of Indian Made Foreign Liquor (IMFL). Originally incorporated as Rampur Distillery Company, it initially focused on distillation and bottling for branded liquor companies and canteen stores serving the armed forces. In 1997, the company entered the branded IMFL segment with the launch of its flagship 8PM Whisky, which became a millionaire brand'crossing annual sales of one million cases'within a year of its launch.

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