Radico Khaitan Limited — PPTs, 23-06-2025: Investor Presentation

1. Financial Highlights:

Radico Khaitan reported FY2025 net revenue of ₹4,851 Cr, up 18% YoY, driven by strong growth in IMFL sales. IMFL contributed 69.4% of revenue with a 21% increase in Prestige & Above segment, though it declined slightly QoQ. Total IMFL volume grew 14.3% YoY to 28.2 million cases, with Prestige & Above brands making up 46.1% of volume and 69.4% of revenue. EBITDA rose 32% YoY to ₹668 Cr with a margin improvement to 13.8%. Profit before tax jumped 36% YoY to ₹465 Cr, supported by a 19% increase in gross profit and a gross margin of 42.5%. Earnings per share was ₹25.81, up 35%. The balance sheet benefits from a lean cost structure and strong cash flow generation.

2. Strategic Initiatives & Growth Drivers:

Focus remains on premiumization supported by new luxury launches like Rampur Indian Single Malt variants, Jaisalmer Indian Craft Gin, and Spirit of Victory 1999 Pure Malt Whisky. Capacity has expanded to 321 million liters with eight distilleries and 43 bottling units nationwide to optimize interstate logistics. Radico emphasizes technology-driven R&D, innovation, and global expansion through exports to 100+ countries. Investments continue in brand development, sales, and distribution infrastructure to leverage evolving consumer lifestyles favoring premium spirits, craft gin, and single malts.

3. Business Developments:

Recent product rollouts include multiple premium and super-premium expressions across vodka, whisky, brandy, and gin categories—Magic Moments Dazzle and Verve vodkas, Morpheus XO brandy, and Royal Ranthambore whisky lead the portfolio expansion. The company maintains global travel retail presence and strengthens export channels, bolstering brand recognition internationally.

4. Market Position & Competitive Advantage:

Radico is among India’s largest IMFL companies with over 80 years of heritage and a diversified portfolio that commands leading market shares—60% in brandy and over 50% in vodka segments. The premium & luxury portfolio has grown at a CAGR of 13% since FY19, increasingly contributing to realization per case. Strong backward integration secures quality raw material supply. Pan-India manufacturing and distribution network offers scale and operational efficiencies. Leading Indian single malt and craft gin brands differentiate Radico amid rising premiumization trends.

5. Investor Implications:

Robust premiumization tailwinds, consistent new launches, and geographic expansion underpin positive growth potential. Margin improvement and strong cash flows indicate operational efficiency gains. Investors should track execution risks related to sustaining premium segment momentum and competitive pressures in a rapidly evolving spirits market. The company’s focus on innovation and global scaling presents an attractive opportunity for value appreciation.