New Research Reports

United Breweries (UBBL) reported a 4% YoY revenue growth in 3QFY26 (est. +1%). However, volumes dipped 1% YoY (est. -1%; +8% in 3QFY25) due to higher excise duties in some states, affordability pressures, and an early winter.

Q3FY26 performance: ABDL's Consolidated revenue growth moderated to 3% to Rs1,003cr affected by impact of retail license auction in Telangana and price increase in Maharashtra. P&A sales volume grew by 17% mitigating the impact of 10% volume decline in volumes in Mass premium segment. Gross margins reported 351bps YoY improvement to 46.3% due to benign input prices and benefits of backward integration. EBITDA margins improved by 154bps YoY to 13.5%. The operating profit along with higher other income and lower interest cost led to 15%...

About the stock: Radico Khaitan (RKL) is one of the recognised IMFL company in India with portfolio of 8 millionaire brands. It has one of the largest liquor manufacturers in India with a capacity of 321mn litres p.a. Q3FY26 performance: RKL registered strong performance in Q3FY26 with net revenues growing by 19.5% YoY to Rs.1547cr and EBIDTA growing by 45% YoY to Rs.267.2cr. Revenue growth was driven by 16.6% YoY volume growth (P&A segment volumes grew by 26%). Gross margins expanded by ~350bps YoY aided by favourable input cost and premiumisation. EBITDA margins improved 303bps...

United Spirits’ (UNSP) revenue grew 7% YoY (in line) in 3QFY26. Total volume declined 3% YoY (vs. est. +2% | +8% in 2QFY26). We expected a volume decline given the policy change impact in Maharashtra and heavy
base due to AP.

United Spirits continues to demonstrate resilient growth, led by sustained momentum in the P&A portfolio, an improving product mix and steady volume recovery across key markets. Management remains focussed on strengthening the premium portfolio and sharper brand execution, which should continue to support margin traction. With commodity inflation largely stabilised and productivity programme delivering measurable benefits, the margin framework is expected to be stronger into H2FY26. The company expects healthy demand, driven by festive...

A Premium Journey wit h a Fully Priced Ticket

We met the management of Radico Khaitan. Dilip Banthiya, CFO, and Saket Somani, Vice President – Finance and Investor Relations, shed light on the company’s aspirations, growth path, and margin development.

About the stock: Allied Blenders & Distillers (ABDL), incorporated in 1988, is third largest IMFL company in terms of sales volumes between FY14-22. It has 18 IMFL brands in the portfolio; 4 out of it are Millionaire brands. Premiumisation is core of the long-term growth strategy. Prestige & Above (P&A) brands contribution increased to 40.4% in FY25 vs. 25% in FY18. Q2FY26 performance: ABDL's Consolidated net revenues 14.1% YoY growth to Rs.990.1cr driven by strong 28% volume growth in P&A segment (contributes 47% to overall volumes). Gross margins reported 158bps YoY improvement to 44.4% due...

About the stock: Radico Khaitan (RKL) is one of the recognised IMFL company in India with portfolio of 8 millionaire brands. It has one of the largest liquor manufacturers in India with a capacity of 321mn litres p.a. Prestige & Above...

United Spirits (UNSP) delivered a strong performance in 2QFY26, with revenue rising 12% YoY (beat) and total volumes up 8% (vs. est. 6%).

About the stock: Radico Khaitan (RKL) is one of the recognised IMFL company in India with portfolio of 8 millionaire brands. It has one of the largest liquor manufacturers in India with a capacity of 321mn litres p.a. Prestige & Above (P&A) contribution has gone up to 67% in Q1FY26 due to strong traction to products. Q2FY26 performance: RKL reported strong set of results in Q2FY26 with net revenues growing by 34% YoY to Rs.1493.9cr. Strong revenue growth was driven by 37% YoY volume growth (P&A segment volumes grew by 22%). Despite stable raw material environment, gross margins stood flat at 43.6% as portfolio mix tilted...

We recently attended Allied Blenders & Distillers (ABD) Capital Markets Day where the company outlined its growth path to FY28

Innovation and premiumization success demand a premium

Enhanced the EBIDTA margin guidance to ~17% from earlier 15%+ for FY28E; Premium Mix, backward integration and UK FTA benefits will drive margins: ABDL is targeting mid-teens revenue growth driven by double digit volume growth in prestige & above (P&A) category. It aims the P&A segment mix to improve to 50% by FY28 from 46% in Q1FY26. It has invested ~Rs.450cr on capex to set up backward integration facilities. The PET Bottle manufacturing is expected to cater to 70-75% of current annual requirement while Single malt distilleries and ENA shall help to become self-sufficient, improving its supply chain and reducing its...

ABDL has set ambitious FY28 targets of mid-teens revenue growth with double-digit volume growth, P&A share at 50%, gross margin of 45%+ and EBITDA margin of ~17%; and improve ROCE to 23–25%.

RKL’s Q1 numbers were robust, beating estimates on all fronts. Consolidated net revenue grew by 32.5% y-o-y to Rs. 1,506 crore, higher than our and average street expectation of Rs. 1,346 crore and Rs. 1,355 crore, respectively, aided by y-o-y IMFL volume growth of 37.5%.

Radico Khaitan reported strong revenue growth of 32% YoY (est. 22%) in 1QFY26, with total volume growing 37% (beat).

ABD reported strong volume-led performance with driven by 44% growth in P&A segment, increasing its volume/ value saliency to 46%/ 56% from 37%/ 46% last year.

Sales were above consensus while EBITDA was lower due to interstate taxes and weakness in high margin region of Karnataka