Radico Khaitan Targets ₹500 Cr Sales from Luxury Brands in FY26, Eyes Double-Digit Growth.

Buoyed by the premiumization trend in the alcoholic beverage industry, Radico Khaitan expects its luxury brands- including Rampur Indian Single Malt and Jaisalmer Indian Craft Gin- to generate ₹500 crore in sales in FY26, Managing Director Abhishek Khaitan said.

The company projects an 8-9% volume growth and a 12-15% value growth next fiscal. “This year has been strong for us, and next year should be even better. Our Prestige & Above (PNA) category is expected to grow over 15%, keeping us on track for double-digit growth,” Khaitan told PTI.

Premium Portfolio & Expansion Plans

Radico Khaitan’s luxury portfolio also includes Sangam World Malt and Spirit of Victory 1999 Pure Malt. In Q3 FY24, the company crossed ₹100 crore in premium turnover, reaching ₹250 crore for the first nine months of the fiscal.

Looking ahead, Radico Khaitan plans to launch two more luxury brands in the first half of the next fiscal. “We have been working on these for years, and they will enter the Indian market soon,” Khaitan said.

Market Leadership & Industry Trends

The company, which also owns premium brands like Royal Ranthambore, Dazzle Vodka, and Morpheus Blue, continues to experience strong double-digit growth. Favorable demographics, including India's growing per capita income and the addition of 20 million new legal drinkers annually, are expected to sustain this momentum.

Despite India’s recent cut in bourbon whiskey import duty to 50%, Khaitan remains confident in local players. “Bourbon’s market share in India is minuscule and won’t pressure domestic brands,” he said. However, he emphasized a phased reduction of the 150% duty on Scotch whisky under the India-UK Free Trade Agreement (FTA) to help Indian brands carve out space in the premium segment.

Radico Khaitan’s single malts are already outperforming imported counterparts, with some priced higher. Reducing bulk whisky import duties could further cut costs for Indian liquor manufacturers.

Strong Financial Performance & Growth Strategy

Radico Khaitan remains a leading supplier to the Defense Ministry’s Canteen Stores Department (CSD), holding a 26-27% market share. “The demand for Indian brands is high, and consumers take pride in choosing them,” Khaitan noted.

In FY24, the company reported gross revenue of ₹15,483.9 crore and sold 45.6 million cases, with the PNA category contributing 11.26 million cases. Its Prestige & Above brands saw a 20.3% YoY volume growth.

In Q3 FY24, Radico Khaitan’s net profit rose 27% to ₹95.48 crore, while revenue increased 8% to ₹4,440.90 crore. Prestige & Above brands accounted for 50.9% of its IMFL volumes, growing 17.7% YoY.

With liquor retail policy changes in states like Uttar Pradesh and Andhra Pradesh expanding retail networks, Radico Khaitan expects further growth in the IMFL segment.

Expansion & Capex

The company recently completed a ₹750 crore investment in a new greenfield distillery in Sitapur and expanded capacity at its Rampur facility. “Our major capex is done, and we’ll now focus on routine maintenance,” Khaitan said.

Radico Khaitan also operates a distillery in Aurangabad, Maharashtra, with a total owned capacity of 320 million liters.

HBL