Radico FY26 Q1 update

Macro Economic Tailwinds of the Sector

• Rapid Economic Growth: India is one of the fastest growing economies with a rising middle class and the emergence of a sizeable high-income segment. These factors are transforming the overall consumption profile.
• Urbanization: Both urban and rural areas are witnessing increases in income, leading to a breakdown of the traditional urban-rural consumption divide.
• Favorable Demographics: A working-age majority and the rise of aspirational young millennials are driving demand for premium products.
• Technology & Innovation: India has an established technology backbone, fostering new business models and enhanced customer engagement.
• Changing Consumer Attitudes: Increased social acceptance of alcobev (alcoholic beverages) and a shift toward lifestyle-driven, premium consumption support sectoral growth.
• Global Positioning: India’s consumption growth outpaces major economies, positioning it to become the world’s third largest consumer market by 2026.
• Premiumization: There is a consistent trend towards premium and luxury spirits, underpinned by demographic changes and evolving consumer preferences.
• Low Per Capita Consumption: India’s IMFL (Indian Made Foreign Liquor) consumption per capita remains low (2.5 liters), indicating ample room for penetration and conversion from country liquor.

Growth Factors for the Company

• Strong & Growing Premium Portfolio: Continuous investment in developing and launching premium and luxury brands aligned with consumer aspirations.
• Successful Luxury Launches: Recent years have seen successful launches in luxury single malt, craft gin, and super-premium categories.
• Manufacturing Strength: Extensive manufacturing capacity (321mn liters, 43 bottling units), providing scale advantage and cost efficiencies.
• Pan-India Distribution: Robust sales through 100,000 retailers and over 10,000 on-premises outlets, ensuring strong availability and reach.
• Technology & R&D: Ongoing investment in technology-driven research and innovation.
• Exports: Operations have expanded to over 100 countries, building global equity and diversification.
• Efficient Supply Chain: Strategic locations lower operational and transport costs.
• Experienced Management: Board and senior management bring strong sectoral expertise, underpinning execution and innovation capabilities.

 Portfolio Composition

Segment	Key Brands & Market Status	Market Share / Position
Whisky	8PM, 8PM Premium Black, Royal Ranthambore, Rampur Single Malt, Spirit of Victory 1999 Pure Malt	5-80% depending on sub-segment
Vodka	Magic Moments, Magic Moments Verve, Magic Moments Dazzle	60%+ market share
Brandy	Morpheus, Morpheus Blue XO Brandy	60%+ market share
Rum	1965 Spirit of Victory, Contessa Rum	15-18% (CSD), leading positions
Gin	Jaisalmer Indian Craft Gin	50% share in luxury gin market

• Most new launches in the last 15 years have been in the premium segment, reinforcing the company’s premiumization strategy.
• The company’s brands feature prominently in The Millionaires’ Club global rankings, including Magic Moments (6th largest vodka worldwide) and Morpheus Brandy (top brandy and fastest-growing brandy).

Growth & Prospect of Prestige & Above (P&A) Segment

• Historic Growth: P&A segment volumes have grown at a CAGR of 13% since FY2019, with over 212% total volume growth in that period.
• Portfolio Focus: Resorting to successful premium and luxury product launches, including:
• Rampur Single Malt (various expressions, award-winning globally)
• Jaisalmer Indian Craft Gin (market leader in luxury gin, numerous awards)
• Spirit of Victory 1999 (expanding super-premium whisky segment)
• Magic Moments Verve, Dazzle Vodka, Morpheus Blue XO Brandy
• Revenue Contribution: In FY2025, Prestige & Above accounted for 46.1% of total IMFL volumes and 69.4% of total IMFL revenues.
• Financials: Realization per case for the P&A segment increased from ₹1,307 in FY2019 to ₹1,801 in FY2025.
• Volume Performance: Prestige & Above segment sold 13mn cases in FY2025 (up from 11.26mn in FY2024), contributing significantly to total own volumes.
• Strategic Outlook:
• Premiumization is expected to continue, supported by demographic trends and consumer preferences for quality.
• Fastest volume growth projected in white spirits (vodka, craft gin), with whisky and Indian single malt continuing to see premium demand.
• State policy focus on consumer experience and progressive excise changes favor up-trading to premium products.

Radico Khaitan continues to leverage macroeconomic, demographic, and consumer shifts to reinforce premiumization, scale, and brand value in both domestic and international markets, with the Prestige & Above segment positioned as the main engine for future growth.