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Informist, Monday, Jul. 27, 2026

By Devanshu Singla

MUMBAI – Alcohol company Radico Khaitan is expected to post a strong double-digit growth in revenue and net profit for the June quarter, on the back of strong momentum in the prestige and above segment, according to brokerages tracking the company.

The company is expected to report a standalone net profit of INR 1.96 billion for the June quarter, according to the average of estimates from five brokerages. This will be up nearly 40% on year and 12% on quarter. The highest estimate for the company's net profit is INR 2.08 billion from Anand Rathi Share and Stock Brokers Ltd., and the lowest estimate is INR 1.80 billion from Nuvama Wealth Management Ltd.

The company's net sales for the quarter are expected to be around INR 17 billion, up nearly 13% on year and 13% on quarter, according to the estimates. The highest estimate for the company's net sales is INR 17.21 billion from Motilal Oswal Financial Services Ltd. and the lowest estimate around INR 16.54 billion by JM Financial Institutional Securities Pvt. Ltd.

Radico Khaitan is likely to outperform its key competitors with sales growth over 10%, despite a high base, driven by 16% on year growth in Indian-made foreign liquor business, JM Financial said. However, non-Indian-made foreign liquor segment sales are likely to decline 5% on year.

Within the Indian-made foreign liquor segment, JM Financial expects prestige and above sales to grow 32% on year and volume growth of 30% on year despite a strong base led by sustained momentum in Magic Moments, After Dark, and the luxury portfolio. The company's sales in the regular segment are likely to fall 15% on-year and volumes to fall 12% on year impacted by adverse excise regulations in Karnataka and Maharashtra, and high base.

In the popular segment, Motilal Oswal expects 2% volume growth and 4% revenue growth.
 

Radico's earnings before interest, taxes, depreciation, and amortisation are estimated at INR 3.11 billion for the June quarter, up 35% from INR 2.30 billion in the year-ago quarter, according to the average of estimates from four brokerages. The highest estimate for the company's EBITDA is INR 3.20 billion from Motilal Oswal and the lowest is INR 2.97 billion from Nuvama.  

Liquor companies are expected to start the financial year 2026-27 (Apr-Mar) with the continued trend of premium spirits outperforming popular segments, Motilal Oswal said. However, elevated inflation in key raw materials such as glass, polyethylene terephthalate, and packaging, among others are expected to weigh on gross margins.

Investors will watch for performance of new launches, Motilal Oswal said.

"The India-UK FTA, effective from mid-July, is a structural positive for the sector and is expected to provide meaningful margin benefits from 2HFY27 (Oct-Mar) through lower Scotch import duties," Motilal Oswal said. The spirits space will also benefit from supportive state policies in Uttar Pradesh and Karnataka, the brokerage added.

Possible price hikes in Telangana and opening up of Tamil Nadu could be additional triggers, JM Financial said. At 1223 IST, shares of Radico Khaitan traded at INR 4,158 on the National Stock Exchange, up nearly 2% from Friday price. The stock is up 24% since the company reported its March quarter earnings on May 6.
 
All 11 brokerage reports on the company available with Informist have a "buy" recommendation on the stock. The average target price of the "buy" recommendation is INR 3,820, which is 8% lower than current market price.

Following are the June earnings estimates for Radico Khaitan from five brokerage firms in descending order by estimate of net profit, in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Himanshi Gupta

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