Q3 2026 Radico Khaitan Ltd Earnings Call Transcript
Key Points
- Radico Khaitan Ltd (BOM:532497) achieved its highest-ever quarterly performance with volumes of 9.75 million cases, net revenue of 1547 crores, and EBITDA of 265 crores.
- The company experienced a significant margin expansion, with gross margin improving by 350 basis points year-on-year, driven by a favorable raw material environment and premiumization.
- Radico Khaitan Ltd (BOM:532497) saw strong growth in its premium and luxury portfolio, with brands like Royal Grantham Co. Whiskey and Magic Moment Vodka showing impressive growth rates of over 50% and 18% respectively.
- The company has successfully increased its market share in key states such as Andhra Pradesh, Uttar Pradesh, and Telangana, with Andhra Pradesh market share rising from 15% to 26%.
- Radico Khaitan Ltd (BOM:532497) is on track to become debt-free by FY27, with net debt reduced by 209 crores since March 2025, reflecting strong cash flow generation.
- The company faces challenges in the Maharashtra market due to new regulations favoring local companies, resulting in a decline in industry volumes by about 20%.
- There are ongoing collection issues in Telangana, although recent payments have been received, the situation remains a concern.
- Radico Khaitan Ltd (BOM:532497) is experiencing competitive pressures in the country liquor segment in Uttar Pradesh, although it maintains a leading market share.
- The company is cautious about potential pricing pressures in the market as competitors may become more aggressive due to improved gross margins across the industry.
- Despite strong performance, sustaining high growth rates in markets like Andhra Pradesh may be challenging due to the high base effect.
Ladies and gentlemen, good day and welcome to the Radico Khaitan Limited Q3 FY26 earnings conference call hosted by DAM Capital Advisors. (Operator Instructions) Please note that this conference is now being recorded.
I now hand the conference over to Mr. Sanjay Manyal from DAM Capital Advisors. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone. We would like to thank Radico Khaitan's management for providing DAM Capital with the opportunity to host Q3 FY26 earnings call. We have with us senior leadership team from Radico Khaitan, Mr. Abhishek Khaitan, Managing Director; Mr. Dilip Banthiya, CFO; and Mr. Sanjeev Banga, President, International Business.
I hand over the call to Mr. Abhishek Khaitan for his opening remarks. Over to you, sir.
Good afternoon, ladies and gentlemen. First of all, wishing everyone a very, very happy new year, and thank you for
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