Radico Khaitan lifts operating margin to 20.72% in Q1FY27
Revenue grew faster than expenses both year on year and sequentially, while Prestige & Above volumes rose 35.80% in the quarter.
Filed 28 Jul 2026, 14:06 IST · Radico Khaitan Ltd (RADICO)
Key takeaways
- Consolidated operating margin rose 5.30 percentage points year on year to 20.72% as revenue grew +11.80% while expenses rose +4.78%.
- Net profit increased +75.91% year on year to Rs 229.60 cr, helped by a 0.61-percentage-point lower tax rate and a 26.87% fall in interest costs.
- Management said Prestige & Above volumes grew 35.80% in Q1FY27 and that it had upgraded full-year FY2027 volume-growth guidance to over 25%.
Price around the results
Margin reaches a five-quarter high
Revenue rose +11.97% sequentially while expenses increased +9.48%, allowing operating profit to grow +22.65% and operating margin to expand 1.80 percentage points to 20.72%. The margin has now risen for five straight quarters, from 13.61% in Q4FY25 to 20.72% in Q1FY27. It was 4.60 percentage points above the 16.12% median for the nine Fast Moving Consumer Goods peers that had reported.
Profit growth was led by operations, not other income
Profit before tax grew +74.46% year on year, while other income contributed only 2.93% of pre-tax profit, so the increase was mainly operating in nature. The tax rate fell 0.61 percentage points year on year, and interest costs declined +26.87%, adding to the +75.91% growth in net profit. Sequentially, the tax rate rose 0.44 percentage points, but interest costs fell +24.35%.
Premium brands drove volume while packing costs remained a drag
Management said Prestige & Above volume grew 35.80%, while Magic Moments crossed 3.25 million cases with +43.00% year-on-year growth; it also said distribution expansion for 8PM Premium Black Whisky would continue. The company said packing-material price volatility had a roughly Rs 30 cr financial impact during the quarter, and attributed regular-volume decline to a higher Q1FY26 base and policy changes in Maharashtra and Karnataka. Management said it expects full-year FY2027 EBITDA margin around 20%, A&SP spending at 6% to 8% of IMFL revenue, and net debt-free status by Q2 FY2027.
Prior result reactions were mixed, with a 2.02% typical move
A current post-results price reaction has not yet been recorded. Across eight prior result reactions, the stock rose five times and fell three times, with a median absolute move of 2.02%, indicating that past responses were generally modest despite some larger individual moves.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,684 cr | ₹1,504 cr | +11.97% | +11.80% |
| Other income | ₹9 cr | ₹10 cr | -11.66% | — |
| Expenses | ₹1,335 cr | ₹1,219 cr | +9.48% | +4.78% |
| Operating profit | ₹349 cr | ₹285 cr | +22.65% | +50.29% |
| Operating margin (%) | 20.72% | 18.92% | — | — |
| Interest | ₹12 cr | ₹15 cr | -24.35% | -26.87% |
| Depreciation | ₹41 cr | ₹42 cr | -2.28% | +13.71% |
| Profit before tax | ₹305 cr | ₹237 cr | +28.67% | +74.46% |
| Tax | ₹75 cr | ₹58 cr | +30.96% | +70.20% |
| Net profit | ₹230 cr | ₹179 cr | +27.94% | +75.91% |
| EPS (₹) | ₹17.15 | ₹13.41 | +27.89% | +75.90% |
Operating margin of 20.72% compares with a Fast Moving Consumer Goods sector median of 16.12% across 9 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Prestige & Above category volume grew 35.8% in Q1 FY2027.
- Magic Moments crossed 3.25 million case sales in Q1 FY2027, growing 43% year on year.
Guidance & outlook
- The company upgraded its full-year FY2027 Prestige & Above volume growth guidance to over 25%.
- The company expects to deliver an EBITDA margin of around 20% for full-year FY2027.
- The company expects A&SP spending to remain around 6% to 8% of IMFL revenues.
- The company expects to be net debt free by Q2 FY2027.
Expansion
- The company plans to continue expanding the distribution width of 8PM Premium Black Whisky.
New products
- Magic Moments launched Flavors of India, a range of flavoured vodkas with Jamun SpicyMint, Alphonso Mango and Thandaai flavours.
- After Dark launched an all-new premium avatar during Q1 FY2027.
New initiatives
- The company is making prudent marketing investments in existing core brands and new launches to sustain growth and market share.
- The company is using a flavour-led innovation strategy to differentiate Magic Moments and deepen consumer engagement.
Competition
- Magic Moments accounts for 60% of the overall vodka market share.
- Jaisalmer has a 50% market share of the luxury gin space.
Problems & risks
- Geopolitical uncertainties, supply chain disruptions and volatility in certain input costs continue to require risk management.
- Packing material price volatility caused an approximately ₹30 crore financial impact during the quarter.
- Regular volume declined due to a higher Q1 FY26 base and policy changes in Maharashtra and Karnataka.
- Non-IMFL revenue declined because of higher captive consumption and lower bulk alcohol sales in Q1 FY2027.
- The company continues to monitor the West Asia crisis.
What to watch
- Whether operating margin holds above 20.72% after five consecutive quarterly increases.
- Whether Prestige & Above volume growth remains consistent with management's full-year guidance of over 25%.
- Whether the company reports progress toward management's stated net-debt-free-by-Q2 FY2027 goal.