Radico Khaitan lifts premium growth guidance to >25%, targets 20% margin
Radico expects its prestige-and-above portfolio to grow more than 25% this year, up from a previous >20% forecast, with an Ebitda margin around 20%. The June quarter already delivered a 50.9% Ebitda jump and a ₹138 crore debt cut.
— 3 earlier stories on Radico Khaitan Ltd. →What's new
- Upgrades FY27 Prestige & Above volume growth guidance to >25% from >20%.
- Forecasts Ebitda margin of around 20% for the full year.
- Cuts net debt by ₹138 crore to ₹106 crore, aiming to be debt-free by Q2.
Why this matters
Radico is doubling down on premiumisation after three years of over 20% growth in the segment. The upgraded guidance signals confidence that momentum will hold despite an already high base. Becoming net-debt-free by next quarter would remove a long-standing balance-sheet overhang.
What we're watching
- Whether the 20% margin holds as input costs evolve.
- Further premium share gains from Magic Moments and luxury brands.
- If the company can sustain this pace without diluting margins.
The full read
Radico Khaitan's June quarter was a record. Revenue ₹1,683.7 crore, Ebitda ₹348.1 crore, up 50.9%. But the real news is the guidance upgrade. Management now expects Prestige & Above volumes to grow >25% for the full year, up from >20% earlier, and an Ebitda margin around 20%. That is a confident call after three consecutive years of 20%+ premium growth. The luxury portfolio already crossed ₹475 crore last year. Net debt fell by ₹138 crore to ₹106 crore, with a target of zero by Q2. At a P/E of 85x, the market has priced in premiumisation — the open question is whether the 20% margin can hold. But the trajectory is clear: Radico is leaving the bulk business behind.
Questions answered
- What drove the 50.9% Ebitda jump in Q1?
- Strong revenue growth of 11.8% and likely operating leverage from a higher-margin premium mix expanded Ebitda margin to 20.7%.
- How much debt does Radico still have?
- Net debt stood at ₹106 crore as of June, down from ₹244 crore in the previous quarter.
- What is the size of the luxury portfolio?
- The luxury portfolio crossed ₹475 crore in the previous fiscal year.
- Is the guidance upgrade backed by actual performance?
- Yes, Q1 already showed premium volume growth above 20% (third consecutive year), and Magic Moments vodka sales rose 43% to 3.25 million cases.
- When will Radico be net debt-free?
- The company expects to achieve net debt-free status by the second quarter of the current fiscal year.
Radico Khaitan Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on RADICO →- 28 Jul 2026 · 2:30 PM IST Radico Khaitan lifts premium growth guidance to >25%, targets 20% margin
- today Radico Khaitan net profit jumps 70% in June quarter, margins expand
- 18d ago CARE lifts Radico Khaitan outlook to Positive
- 23d ago Radico Khaitan's Magic Moments vodka sales jump 43% to 3.25M cases