Radico Khaitan Q2 Results: Net profit surges 69% on strong IMFL growth, revenue up 34%

Radico Khaitan , one of India’s largest spirits companies, reported a strong set of numbers for the second quarter ended September 30, 2025, driven by robust volume growth and improved operating margins across its premium portfolio.

The liquor company’s revenue from operations rose 33.8% year-on-year (YoY) to ₹1,493.9 crore in Q2FY26, supported by higher sales of its Indian Made Foreign Liquor (IMFL) brands.

The net profit surged 69.1% to ₹139 crore, from ₹82.2 crore in the year-ago period, Radico Khaitan said in an exchange filing.

As per the company, gross profit grew 33.9% YoY to ₹652 crore, maintaining a gross margin of 43.6%, while total comprehensive income surged 68.9% to ₹137.8 crore.

On the operating front, the EBITDA jumped 45.4% to ₹236.1 crore, with the margin expanding to 15.8% from 14.5% in Q2FY25.

“Supported by a stable raw material scenario, our continued focus on premiumisation, and operating leverage, we delivered strong operating margins while deepening consumer and market engagement, said Lalit Khaitan, chairman & managing director, Radico Khaitan.

“Although the global trade situation has posed short-term challenges for exports, our robust domestic portfolio underscores the inherent strength and agility of our business model,” he added.

During the quarter, total IMFL volumes increased 37.8% to 9.34 million cases, while Prestige & Above brands registered 21.7% growth, reaching 3.89 million cases. The Prestige & Above portfolio contributed 43.6% to total IMFL volumes and 68.6% to total IMFL sales value, underscoring continued consumer demand for premium offerings.

“Our premium-first strategy continues to deliver exceptional results, reinforcing Radico Khaitan’s standing as one of India’s most aspirational spirits companies. Morpheus Rare Luxury Whisky continues to strengthen its position in the super-premium whisky segment with expanding consumer reach across markets, while The Spirit of Kashmyr Vodka is now available in 7 states and is rapidly scaling its footprint across key metros and premium outlets,” said Abhishek Khaitan, Managing Director of the company.

He further said that the Indian spirits landscape is undergoing a fundamental shift towards premiumisation, and Radico Khaitan is uniquely positioned to lead this transformation. “With a strong innovation pipeline, expanding distribution, and consistent brand investments, we are entering the next phase of accelerated, high-quality growth, both in India and across international markets.”

For the first half of FY26, Radico Khaitan reported net revenue of ₹3,000 crore, up 33.2% YoY, with EBITDA growing 50.3% to ₹466.8 crore and margins improving to 15.6% from 13.8% a year ago. Total comprehensive income for H1 FY26 stood at ₹270.1 crore, marking a 71.6% increase.

In a separate development, Radico Khaitan’s board approved a scheme of amalgamation involving its wholly owned subsidiary, Radico Spiritzs India Pvt. Ltd, and eight step-down subsidiaries. The proposed merger, subject to regulatory approvals, would enable optimal capital utilisation, eliminate administrative redundancies, and create greater value for shareholders, said the company.

As all the merging entities are wholly owned, the amalgamation will not involve any cash or share consideration, the release noted.

Post Q2 results, shares of Radico Khaitan ended Wednesday’s trade at ₹3,172.20, down 0.53%, with a market capitalisation of ₹42,468.64 crore.