Radico Khaitan Q2 Profit Soars 69%, Outpaces United Spirits

Introduction

Radico Khaitan Limited has delivered a robust performance in the second quarter of the financial year 2025-26, reporting significant growth in both revenue and profitability. The liquor manufacturer's results highlight a strong growth trajectory, outpacing its larger competitor, United Spirits, in key growth metrics. This performance underscores the success of the company's strategic focus on premium brands and market expansion, catching the attention of investors and analysts alike.

Radico Khaitan's Stellar Q2 Performance

For the quarter ending September 2025, Radico Khaitan announced a total operational revenue of ₹1,494 crore, marking a substantial 34% increase from the ₹1,116 crore recorded in the same period last year. The company's profitability saw an even more impressive surge, with net profit climbing 69% year-on-year to ₹139 crore, up from ₹82.2 crore in Q2 FY25. This growth indicates strong consumer demand for its products and effective operational management.

A Head-to-Head with United Spirits

When compared with industry leader United Spirits, Radico Khaitan's growth momentum becomes more apparent. United Spirits reported operational revenue of ₹3,173 crore for Q2 FY26, a 12% increase from the previous year. Its net profit grew by 36% to ₹464 crore. While United Spirits operates on a larger scale, Radico Khaitan's percentage growth in both revenue and net profit was significantly higher, showcasing its agility and expanding market footprint.

Financial Performance Snapshot (Q2 FY26)

The Premiumisation Strategy Fueling Growth

A key driver behind Radico Khaitan's success is its unwavering focus on premiumisation. The company has been strategically strengthening its 'Prestige & Above' (P&A) brand category, which is growing at a double-digit rate. Management has expressed confidence in this segment, anticipating it to grow by more than 15%. The company is targeting sales of ₹500 crore from its luxury brands, including Rampur Indian Single Malt and Jaisalmer Indian Craft Gin, in the next fiscal year. This shift towards higher-margin products is enhancing profitability and brand equity.

A Look at Radico's Diverse Brand Portfolio

Radico Khaitan's portfolio includes some of India's most recognized liquor brands. Magic Moments Vodka commands over 60% of the market share in its category. The 8PM whisky was the company's first brand to sell a million cases within a year of its launch. Other key brands contributing to its growth include Morpheus Brandy, Rampur Single Malt, and Jaisalmer Indian Craft Gin. The continuous innovation and introduction of new flavours and premium variants have kept the brands relevant and popular among consumers.

Analyst Confidence and Bullish Outlook

The strong financial performance has been met with positive reviews from market analysts. Several brokerage firms have maintained a bullish stance on Radico Khaitan's stock. JM Financial initiated coverage with a 'Buy' rating and a target price of ₹3,515, citing the potential for strong operating leverage and margin expansion. Similarly, Emkay Global and Mirae Asset Sharekhan have recommended 'Buy' ratings with target prices of ₹3,700 and ₹3,428, respectively. CLSA also initiated coverage with an 'Outperform' rating, highlighting the company's strong track record in brand creation.

Market Position and Competitive Edge

The Indian spirits market is characterized by high entry barriers due to complex state-level regulations. This environment provides a strong competitive moat for established players like Radico Khaitan. The company, founded in 1943, has leveraged its long history and deep understanding of the market to build a robust distribution network and a portfolio of organically grown brands. Its ability to create and scale brands successfully is a significant advantage.

Stock Performance and Investor Returns

Investors in Radico Khaitan have been rewarded handsomely over the years. The stock has delivered remarkable returns, jumping approximately 617% in the last five years. Over the past year, the stock has provided a return of 33.34%, reflecting sustained investor confidence. The consistent financial performance and positive future outlook continue to make it an attractive option for long-term investors.

Conclusion

Radico Khaitan's Q2 FY26 results confirm its position as a high-growth player in the Indian liquor industry. The company's strategic emphasis on premium products is yielding impressive results, enabling it to outpace industry growth rates. With strong backing from analysts and a clear path for future expansion, Radico Khaitan is well-positioned to continue its growth trajectory, enhance profitability, and deliver value to its shareholders.