Radico Khaitan targets 20% premium spirits growth in FY27

INDIA – Radico Khaitan expects its premium and above portfolio to grow by 20 percent in FY27, driven by premiumisation, rising demand for white spirits and improving operating margins, according to Managing Director Abhishek Khaitan.  

The outlook follows a strong FY26 in which the company crossed Rs 6,000 crore (US$632.28M) in net sales and recorded EBITDA of more than Rs 1,000 crore (US$105.38M)  for the first time. 

Outlining the company’s growth strategy, Khaitan said Radico Khaitan is targeting 20 percent growth in premium volumes, 25 percent value growth in its luxury portfolio and stronger profitability during the current financial year. 

“We would see a 120 basis point margin expansion this year,” he said. The company reported an EBITDA margin of nearly 16.8 percent in FY26 and expects it to expand by around 125 basis points in FY27. 

Radico Khaitan’s luxury portfolio, which includes Rampur Indian Single Malt and Royal Ranthambore whisky, generated turnover of Rs 475 crore in FY26. The company expects the portfolio to deliver 25 percent growth over the next two to three years as consumer demand for premium spirits continues to increase. 

To strengthen its position in the luxury whisky segment, the company recently introduced Rampur 1943 Virasat, priced between Rs 3,500 (US$368.83M) and Rs 4,000 for a 750 ml bottle. 

“With this, we are trying to now cater to the entire spectrum of the Indian single malt,” Khaitan said. He added, “We started with a very high-end price point of Rs 8,500 and for eight years have been investing in our malt capacities… now that investment is bearing results,” noting that Rampur is the only Indian single malt served on Air India’s international flights. 

During FY26, Radico Khaitan sold 36.62 million cases, with its Prestige and Above portfolio contributing 16.7 million cases, representing 45.6 percent of total sales volumes.  

The segment generated Rs 3,063.7 crore and accounted for 70.3 percent of the company’s Indian Made Foreign Liquor (IMFL) revenue. 

Khaitan also highlighted the rapid expansion of India’s vodka market, describing white spirits as an important long-term growth opportunity. 

“This is a huge shift in the liquor industry… I think white spirits are the future,” he said, attributing the trend to increasing consumption among younger consumers and women. 

The company’s flagship Magic Moments Vodka, which commands nearly 60 percent of India’s vodka market, sold more than one million cases every month between April and June.  

Quarterly sales reached approximately 3.3 million cases, compared with 2.27 million cases during the corresponding period last year. 

On exports, Khaitan said overseas markets contribute around 8 percent of total sales value. Radico Khaitan’s brands are available in 100 countries and 63 duty-free outlets, with plans to expand to 100 duty-free locations. 

“Our exports are getting quite robust. There is this intrigue or mystique about the Indian brands, especially the single malts, which is really taking the foreign consumers. The Indian brands are getting popular globally,” he said.  

He added that capital expenditure during FY27 is expected to remain between Rs 150 crore and Rs 175 crore, primarily supporting maintenance and brand-related investments. 

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