Company Update : Radico Khaitan Ltd By Motilal Oswal Financial Services Ltd
Robust volume growth; all-round beat
* Standalone net sales up 32% YoY to INR15.1b (est. INR13.8b) in 1QFY26.
* Total volume up 38%, with P&A volume rising 41% YoY (16% in 4Q) to 3.8m cases (est. 3.2m cases) and Regular volume rising 52% YoY to 5.4m cases.
* Royalty cases were down 40% YoY to 0.46m cases.
* Regular segment’s growth was aided by a low base, resolution of statespecific issues, and route-to-market changes in Andhra Pradesh.
* Non-IMFL revenue remained muted due to lower bulk alcohol sales.
* Gross margin expanded 150bp YoY to 43%, driven by ongoing premiumization and a stable raw material environment.
* Management remains optimistic on the stability of ENA and grain prices in FY26.
* Employee costs rose 10%, S&D increased 48%, and other expenses increased 23% YoY.
* EBITDA margin rose 230bp YoY to 15.4%.
* EBITDA/PBT/APAT grew 56%/82%/84% YoY in 1QFY26.
* An exceptional item of INR699m relates to the settlement of a demand raised by the Municipal Council of Rampur for reassessed House and Water Tax for the period of Apr’19- Mar’31. New launches
* The company expanded its premium portfolio with two key launches: Morpheus Super Premium Whisky, marking its entry into the fast-growing super-premium whisky segment, and The Spirit of Kashmyr, a luxury vodka positioned to become a leading global brand
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