Key Financial & Operational Performance for Q1 FY27

Volumes:

  • Total IMFL volume: 10 million cases (highest ever quarterly volume)
  • Year-on-Year growth: 3%

Financials:

  • Revenue: ₹1,684 crores
  • EBITDA: ₹348 crores
  • EBITDA Margin: 20.7% (expanded by 536 basis points YoY)
  • Gross Margin: 49.1% (expanded by 610 basis points YoY and 110 basis points QoQ)

Prestige & Above (P&A) Portfolio Performance:

  • Volume growth: 36% YoY
  • Magic Moments vodka volume: 3.25 million cases (43% YoY growth)
  • Magic Moments value growth: 51% YoY
  • Flavored vodka contribution: 75% of volumes (up from 65% last year)
  • Luxury portfolio sales value (FY26): ₹475 crores

Margin Drivers:

  • Gross margin expansion attributed to:
  • Raw material benefits: 75 basis points
  • Price increases: 75 basis points
  • Packing material price volatility resulted in a financial impact of approximately ₹30 crores

Segment-wise Margins:

  • IMFL business margin: 23%+
  • Non-IMFL business margin: 11% to 11.5%

Balance Sheet & Capital Allocation:

  • Net debt reduced by ₹138 crores since March 2026
  • Target to become net debt-free by Q2 FY27
  • Maintenance capex guidance: ₹150-170 crores
  • Minimum dividend distribution policy: 20%

Strategic & Operational Highlights

Brand Performance:

  • Magic Moments maintains over 60% market share in the vodka category
  • Royal Ranthambore limited edition pack well received
  • 8PM Premium Black gained momentum through IPL partnership with Sunrisers Hyderabad
  • After Dark whiskey introduced contemporary packaging
  • Morpheus whisky launched in 10-12 states with initial positive traction

Category Trends:

  • Indian vodka category grew at over 20% CAGR between FY22 and FY26
  • Vodka share in Indian IMFL industry increased from 4.6% in Q1 FY26 to 6.1% in Q1 FY27
  • Vodka offers attractive unit economics with lower production costs and premiumization potential

Market Developments:

  • Karnataka policy rationalization: P&A category grew 9% in Q1 while Radico's P&A grew 83%
  • Maharashtra MML impact: Industry degrew 20% in Q1, but Radico's P&A grew 10%
  • Tamil Nadu potential: Signs positive for market opening; could be significant for Morpheus brandy

International Business:

  • Brands available in over 100 countries
  • Present in 63 travel retail outlets
  • Rampur and Jaisalmer brands gaining global recognition
  • Export volume contribution: 5-6%

Forward-looking Guidance & Commentary

FY27 Guidance:

  • P&A portfolio volume growth: Over 25% (upgraded from 20%)
  • Luxury portfolio value growth: 25%
  • EBITDA margin: Around 20% sustainable

Innovation Pipeline:

  • Focus on new flavor innovation in vodka
  • Tequila launch planned for current year
  • Continued focus on ethnic flavors of India

Distribution Expansion:

  • On-trade channel remains major thrust area
  • Airport presence expanded from 50 to 63 outlets; target of 100 airports
  • Airline partnerships: Rampur on Air India, Jaisalmer Gin on SpiceJet
  • Plans for influencer marketing on digital channels

Capacity & Raw Materials:

  • Total ENA requirement: 28-30 crore liters
  • Captive capacity: 33 crore liters across Rampur plant, Sitapur plant, and joint venture
  • No immediate plans for capacity expansion due to industry ENA surplus

Management Participants

  • Mr. Abhishek Khaitan, Managing Director
  • Mr. Dilip Banthiya, Chief Financial Officer
  • Mr. Sanjeev Banga, President – International Business
  • Mr. Sudhir Upadhyay, Chief Sales Officer