Radico Khaitan Ltd. share price target

Premiumisation momentum accelerates; P&A portfolio continues to outperform: RKL's premiumisation strategy continues to deliver strong results, with P&A portfolio reporting 35.9% YoY volume growth to 5.2mn cases in Q1FY27, despite high base of 41% YoY growth in Q1FY26. Growth was led by Magic Moments Vodka, which recorded its highest-ever quarterly volumes of ~3.3mn cases (+43% YoY), accounting for ~41% of FY26 volumes in just Q1FY27, supported by flavour-led innovation and improving category adoption. Management highlighted that vodka's share of the Indian spirits market increased to 6.0% from 4.6% in Q1FY26. Other brands including...

Radico Khaitan (RDCK) continued to deliver robust P&A volume growth and strong operating performance in 1QFY27. Revenue grew 12% YoY to INR16.8b, with P&A value growth at 36%, while the regular portfolio declined 15%.

P&A revenues grew by 30%+ in FY26; management expects 20%+ growth in FY27: P&A registered 4th consecutive quarter of strong double digit volume growth of 28% in Q4FY26 driven by double digit volume growth in key millionaire brands and strong traction to luxury brands. P&A category volumes and revenues grew by 29% and 31% respectively in FY26. Magic Moment Vodka registered 21% volume growth to 8.6mn cases while its revenues cross Rs1,500cr in FY26. Brands such as After Dark whisky and Royal Ranthambore registered a growth of 60% and 50%...

Radico Khaitan (RDCK) continued to deliver robust P&A volume growth and strong operating performance in 4QFY26/FY26. Revenue growth was 15% YoY at INR15.0b, with P&A value growth at 29%.

Radico Khaitan (RDCK) has scaled at a pace far superior to the industry over the years, resulting in market share gains (31m cases vs ~400m industry size in FY25; ~8% share).

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...

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: 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...

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...

Innovation and premiumization success demand a premium

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).

Radico Khaitan Ltd (RKL) continues to focus on premiumisation and expects double-digit volume growth momentum in the Prestige & Above (P&A) category to continue.

We met Dilip Banthiya, CFO and Saket Somani, SVP - Finance & Strategy. Takeaways, Confident of reporting strong double-digit volume growth in P&A brands driven by expanding product offerings and widening distribution network.

Radico Khaitan is one of the oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL) with net revenue of INR48b and volume of 31m cases in FY25 (P&A was ~15mn cases).

RKL’s Q4FY25 numbers were good, with net revenue growing by 20.9% y-o-y to Rs. 1,304 crore and OPM rising by 225 bps y-o-y to 13.6%, which led to adjusted PAT growth of 59.5% y-o-y to Rs. 91 crore.

Innovation and premiumization success demand a premium

RKL’s Q3FY25 performance was good with revenue growth of 11.5% y-o-y to Rs. 1,294 crore and OPM rising by 191 bps y-o-y to 14.2%, which led to PAT growth of 27% y-o-y to Rs. 96 crore.

We recommend a BUY on the stock with an upside of 10% from the CMP