Did Radico Khaitan Experience a 4.8% Revenue Drop in Q2?
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Synopsis
Discover the latest financial report from Radico Khaitan, where a sequential revenue dip raises questions amidst a surge in net profit. What does this mean for the future of the premium spirits market in India?
Key Takeaways
- 4.83% revenue drop sequentially in Q2 FY26.
- Rs 139.56 crore net profit, a 73% YoY increase.
- Strong performance in premium product segments.
- Merger plans to enhance operational efficiency.
- Focus on premiumization in the Indian spirits market.
Mumbai, Oct 29 (NationPress) The liquor producer Radico Khaitan Limited announced on Wednesday a revenue decline of 4.83% sequentially for the quarter that concluded in September 2025 (Q2 FY26).
Based in Rampur, the company’s consolidated revenue from operations totaled Rs 5,056.72 crore in the September quarter, a decrease from Rs 5,313.5 crore in the preceding quarter (Q1 FY26).
Nevertheless, revenue surged by nearly 29% compared to Rs 3,906.59 crore during the corresponding quarter of the previous fiscal year (Q2 FY25).
The manufacturer of Magic Moments saw its net profit soar by 73% year-on-year (YoY) to Rs 139.56 crore, thanks to robust volume growth and a sustained emphasis on premium offerings.
In the same period last year, Radico Khaitan reported a net profit of Rs 80.66 crore, while the profit for the previous quarter was Rs 130.52 crore.
Commenting on the results, Abhishek Khaitan, Managing Director of Radico Khaitan, stated that the company’s “premium-first strategy” continues to yield outstanding results, reinforcing its status as one of India’s most coveted spirits brands.
He underscored the impressive performance of Morpheus Rare Luxury Whisky in the super-premium market and the expanding availability of The Spirit of Kashmyr Vodka, now accessible in seven states.
Khaitan noted that the Indian spirits sector is undergoing a noticeable trend toward premiumization, positioning Radico Khaitan to spearhead this evolution with its innovative product pipeline, expanding distribution channels, and ongoing brand investments.
Additionally, the company's board sanctioned a merger plan involving its wholly-owned subsidiary Radico Spiritzs India Pvt Ltd and eight step-down subsidiaries.
This merger, pending regulatory approvals under Sections 230–232 of the Companies Act, aims to enhance operational efficiency, reduce compliance expenditures, and bolster management effectiveness.
Renowned for premium brands like Rampur Indian Single Malt and Jaisalmer Indian Craft Gin, Radico Khaitan stated that this consolidation would optimize capital use, eliminate administrative redundancies, and enhance shareholder value.
Following this announcement, shares of Radico Khaitan dipped by 0.61% to Rs 3,169.
Point of View
It’s important to recognize Radico Khaitan's efforts to adapt in a shifting market landscape. Their focus on premiumization and innovative strategies reflects a broader trend in the industry that could redefine consumer preferences in the liquor sector.
NationPress
31/10/2025
Frequently Asked Questions
What caused the revenue decline for Radico Khaitan?
The revenue decline of 4.83% was observed on a sequential basis, attributed to various market dynamics despite a significant year-on-year profit increase.
How did Radico Khaitan's net profit change?
Radico Khaitan's net profit increased by 73% year-on-year, rising to Rs 139.56 crore, driven by strong volume growth and focus on premium products.
What is the significance of the merger involving Radico Spiritzs India Pvt Ltd?
The merger aims to streamline operations and improve management efficiency, which can lead to reduced compliance costs and better capital utilization.
