Radico Khaitan eyes 30% growth for luxury spirits, plans two new products in FY26

Mint

06-05-2025

Radico Khaitan Ltd., the maker of Rampur single malt, will focus on luxury brands in the ongoing fiscal even as its volumes rose in the fiscal ended March on the back of both premium and mass-market brands.
The company expects to launch two new luxury products, both in the brown and white spirits segments, targeting the Indian and international markets, managing director Abhishek Khaitan told Mint. These will be in addition to luxury liqueur, Ankahi, which it launched in March.
'We will enter the super-premium whisky segment within the first half of the year in these high-growth categories, which will continue our premiumisation journey,' he said. 'Our craft luxury gin, Jaisalmer, now has 50% of the market share in its category and Rampur single malt, similarly, is also doing very well."
The company, which also makes Magic Moments vodka and 8PM whisky, sold 31.36 million cases of Indian-made foreign liquor (IMFL) during the year, up 9.2% over FY24's 28.7 million cases, according to its exchange filing.
The company generated a revenue of ₹ 340 crore in FY25 from its portfolio of luxury spirits, starting at ₹ 4,000 per bottle and going up to ₹ 5 lakh for certain single malt variants.
Khaitan said the distiller is targeting a topline growth of more than 30% to reach ₹ 500 crore revenue in this segment in FY26.
'The luxury is a segment where a lot of Indian companies aspired to be,' he said. 'In 2016, we first launched our single malt range and we're seeing the returns of that now, about 7-8 years later.'
Radico Khaitan's consolidated revenue stood at ₹ 17,098.5 crore in FY25, up 10.4% over FY24's ₹ 15,483.9 crore. Its net profit rose 31.86% year-on-year to ₹ 345.61 crore.
In the ongoing quarter, Radico Khaitan also launched its 8 PM branded Premium Black, a grain-blended Indian whisky, as part of the company's broader strategy to strengthen its portfolio for consumers looking for premium offerings. Next, the company will launch two luxury brands—these projects have been in development for the past two years, the company said.
"In the last five years, we have surpassed the industry and have grown higher than it. We feel the trend will continue and we will grow our 'prestige and above' segment by 15% or more in FY26,' Khaitan said. 'Volumes in the regular range have come back, and this will grow 12-14% as well, as cost pressures on grains, etc., are easing. Our luxury business will lead the charge at 30%."
The higher-priced prestige and above brands accounted for 13 million cases—a 15.5% increase—and contributed nearly 70% of its total liquor sales value, according to the company's filings. In the January–March quarter, Radico Khaitan recorded the highest-ever quarterly volume at 9.15 million cases, up nearly 28% from a year earlier.
The alco-bev sector reported a revenue growth of 8-10% in FY25, fuelled by consistent demand and a growing preference for premium products, according to Icra Ltd, a credit rating agency part of Moody's Investor Service. Operational profit margins remained steady at 12-13%, supported by reduced packaging costs, despite the upward pressure from rising grain prices, it said.