Radico Q2 FY2027 EBITDA rose 51% as premium mix expanded

Radico’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose 51.0% year on year to Rs 356.5 crore in Q2 FY2027, as Prestige & Above volume increased 35.8% to 5.28 million cases and lifted its share of total own volume to 53.7% from 43.6% a year earlier.

How did Radico’s Q2 FY2027 profit performance change?

Radico reported EBITDA of Rs 356.5 crore in Q2 FY2027, up Rs 120.4 crore, or 51.0%, from Rs 236.1 crore in Q2 FY2026. EBITDA grew faster than net revenue from operations, which rose 16.8% to Rs 1,745.1 crore from Rs 1,493.9 crore. The quarter combined a larger Prestige & Above contribution with higher gross profit.

Gross profit rose 28.6% to Rs 838.4 crore from Rs 652.0 crore, while gross margin increased to 48.0% from 43.6%. EBITDA margin expanded by 462 basis points to 20.4% from 15.8%. Profit before tax increased 65.1% to Rs 307.7 crore, and total comprehensive income increased 67.1% to Rs 230.3 crore from Rs 137.8 crore.

Radico’s total comprehensive income margin reached 13.2% in Q2 FY2027, compared with 9.2% in Q2 FY2026. Basic earnings per share were Rs 17.23, up 66.0% from Rs 10.38. The presentation states that these financial measures are reported on a standalone basis.

What drove Radico’s revenue growth in Q2 FY2027?

Radico’s Indian-made foreign liquor, or IMFL, business drove the increase, with IMFL revenue rising 23.4% to Rs 1,292.2 crore in Q2 FY2027 from Rs 1,047.5 crore in Q2 FY2026. Prestige & Above revenue grew 38.6% to Rs 996.0 crore, whereas Regular & Others revenue declined 9.3% to Rs 292.7 crore. Non-IMFL revenue rose 1.4% to Rs 452.9 crore.

The revenue mix shifted toward Prestige & Above. The segment accounted for 77.1% of IMFL revenue in Q2 FY2027, up from 68.6% a year earlier, while IMFL represented 74.0% of net revenue from operations, compared with 70.1%. Non-IMFL revenue of Rs 452.9 crore was Rs 6.4 crore above the prior-year quarter’s Rs 446.5 crore.

Prestige & Above revenue also increased sequentially, reaching Rs 996.0 crore in Q2 FY2027 from Rs 970.0 crore in Q1 FY2027, a 2.7% increase. Total net revenue rose 3.6% quarter on quarter from Rs 1,684.7 crore. Regular & Others revenue was Rs 292.7 crore in Q2 FY2027, compared with Rs 289.3 crore in Q1 FY2027.

How did Radico’s volume mix shift toward Prestige & Above?

Radico sold 5.28 million Prestige & Above cases in Q2 FY2027, 35.8% more than the 3.89 million cases sold in Q2 FY2026. Regular & Others volume fell 9.7% to 4.55 million cases from 5.04 million cases. Total own volume nevertheless rose 10.1% to 9.83 million cases because the premium-volume gain exceeded the decline in the other segment.

Prestige & Above represented 53.7% of total own volume, a 10.1-percentage-point increase from 43.6% in Q2 FY2026. This segment’s 5.28 million cases were also 1.2% above Q1 FY2027’s 5.22 million cases. Regular & Others cases declined 1.1% quarter on quarter from 4.61 million.

Total volume, including royalty brands, rose 7.2% to 10.02 million cases from 9.34 million cases. Royalty-brand volume declined to 0.18 million cases from 0.42 million cases a year earlier, so total-volume growth was lower than own-volume growth. For the first half of FY2027, Prestige & Above volume grew 35.8% to 10.50 million cases, while Regular & Others volume fell 12.5% to 9.16 million cases.

What do Radico’s first-half results and net debt show?

Radico’s first-half FY2027 EBITDA increased 50.9% to Rs 704.6 crore from Rs 466.8 crore in the first half of FY2026. Net revenue from operations rose 14.3% to Rs 3,429.8 crore, while gross profit increased 28.2% to Rs 1,666.2 crore. EBITDA margin was 20.5%, compared with 15.6% in the prior-year first half.

First-half Prestige & Above revenue rose 37.3% to Rs 1,966.0 crore from Rs 1,431.7 crore. Its share of total IMFL revenue reached 77.0%, compared with 67.6% in the first half of FY2026. Total comprehensive income for the six-month period grew 68.7% to Rs 455.7 crore, and basic earnings per share rose 67.8% to Rs 34.12.

Radico reported net debt of Rs 175.4 crore at the Q2 FY2027 reporting point, a reduction of Rs 68.7 crore versus March 2026. Management attributes higher profitability and return ratios to premiumisation and raw-material tailwinds. The presentation does not provide a separate quarter-by-quarter raw-material cost figure, so its disclosed figures do not quantify the respective effects of input costs and product mix on margin expansion.

Conclusion

Radico’s Q2 FY2027 results show that the premium mix changed materially: Prestige & Above volume grew 35.8%, its share of own volume rose to 53.7%, and its revenue increased 38.6%. Against net-revenue growth of 16.8%, gross profit rose 28.6%, EBITDA rose 51.0%, and EBITDA margin reached 20.4%.

The next results will indicate whether Prestige & Above can retain its 77.1% share of IMFL revenue while Regular & Others volume remains below the prior-year level. Radico has also disclosed a target to expand global travel retail from more than 65 stores to 100 stores, while net debt stood at Rs 175.4 crore at the Q2 FY2027 reporting point.