Radico Khaitan Ltd – Fundamental Overview

Radico Khaitan is one of India’s major IMFL (Indian Made Foreign Liquor) companies, known for brands like Magic Moments vodka, 8 PM whisky, Morpheus brandy, and Royal Ranthambore whisky. The company has a strong presence across vodka and premium spirits, and over the last few years it has been aggressively shifting its focus toward premiumization — a strategy that lifts margins and reduces reliance on the highly competitive mass segment. Its premium brands, especially Royal Ranthambore and Morpheus, have been gaining traction in metros and high-income markets, which has helped the company improve its product mix. Financially, Radico’s revenue in FY24 and FY25 has grown steadily, driven by both volume expansion and better realisations from premium products. The Prestige & Above segment is now contributing a larger share of total sales, which is the main reason for the improvement in operating profitability. Even though raw material prices like ENA (extra neutral alcohol) and packaging costs have remained volatile, the company has managed to maintain stable margins through cost control and price hikes in key states. Its EBITDA margins have shown a recovery trend as premium brands scale. Radico has also invested heavily in capacity expansion. The new distillery at Sitapur — one of the largest grain-based distillery projects in India — is a major long-term growth lever. This facility boosts capacity for both alcohol production and premium bottling, improving backward integration and lowering dependency on external suppliers. The company is also expanding its distribution reach across Tier 1 and Tier 2 cities and increasing marketing spends focused on premium labels, which strengthens brand equity.