Radico Khaitan Limited targets 100 duty-free travel outlets

On October 28, 2026, Radico Khaitan Limited said it had entered four major UK airports and was targeting 100 duty-free locations, up from around 70, to showcase its luxury spirits portfolio internationally. Radico said the airport listings cover Heathrow, Gatwick, Birmingham and Manchester.

Why has Radico entered four UK airports?

Radico has entered four UK airports because management sees global travel retail as an important channel for luxury-brand visibility, consumer consumption and gifting. The listings at Heathrow, Gatwick, Birmingham and Manchester made Radico the first Indian spirits company present across four major UK airports, according to management's Q2 FY27 remarks.

The airport channel gives Radico a route to present its products to international travellers rather than relying only on domestic retail distribution. International Business President Sanjeev Banga said travel retail was particularly important for the luxury portfolio, but management did not disclose airport-specific sales, volumes, margins or the products stocked at each of the four locations.

How close is Radico to its 100-outlet duty-free target?

Radico is around 30 duty-free locations short of its stated 100-location objective, having reached around 70 locations by the October 28, 2026 call. Reaching 100 would increase the current network by about 43%, based on the reported footprint of around 70 locations.

Management said it would continue to focus on global travel retail and seek expansion in quick time, but did not provide a completion date, country list, capital-spending plan or revenue target for the additional locations. The four UK airport listings are part of the broader network, while the call did not state how many of the approximately 70 duty-free locations are in the UK.

Which products support Radico's travel-retail plan?

Radico is using travel retail primarily to support its luxury portfolio of Rampur Indian Single Malt, Jaisalmer Indian Craft Gin and Virasat Indian Single Malt. Management said these products were receiving an exceptional response from consumers in India and abroad, although it gave no brand-level duty-free sales figures for Q2 FY27.

Virasat is a recent priority because Radico previously lacked a malt in the Rs 3,500 to Rs 4,000 per-bottle affordable-luxury range. Management said Virasat was receiving a strong response as it entered new states, while also citing on-trade advocacy sessions, consumer experiences, key-account partnerships and premium shop-in-shop formats as ways to build luxury-brand awareness.

How does travel retail fit Radico's international strategy?

Travel retail gives Radico a global consumer touchpoint while exports continue into overseas markets, including West Asia. Management said geopolitical disruption affected Western Asia shipments initially in February and March, but shipments had resumed regularly and the company had recorded growth across export markets.

The remaining export pressure is freight costs rather than reported demand, according to management. Banga said Radico was absorbing part of higher freight costs, customers were absorbing part in some markets, and some consumer prices had increased; management did not quantify the freight impact or disclose first-half FY27 export revenue.

What financial performance supports Radico's premium expansion?

Radico's Prestige & Above volume rose 36% year on year to a record 5.28 million cases in Q2 FY27, compared with 7% growth in total Indian-made foreign liquor, or IMFL, volume to more than 10 million cases. The faster premium-segment growth supported a richer product mix during the quarter.

Q2 FY27 revenue was Rs 1,746 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, was Rs 356 crore, producing a 20.4% margin. Gross margin reached 48.0%, up 440 basis points year on year but down 109 basis points quarter on quarter, as cyclical brand mix changes and grain-price inflation affected the sequential comparison.

Management said premiumization and product mix added 510 basis points to gross margin, while price increases added 85 basis points. Packaging-material volatility had an approximately Rs 27 crore impact in Q2 FY27, and Radico said it had built higher raw-material inventories to reduce the effect of grain-price increases during the quarter.

Conclusion

The UK airport rollout gives Radico four additional international showcase locations within a duty-free network of around 70 outlets. Its target of 100 locations aligns with a wider premiumization programme that delivered 36% Prestige & Above volume growth in Q2 FY27, faster than the 7% growth in total IMFL volume.

The next measure to watch is whether Radico adds the remaining approximately 30 duty-free locations, for which management disclosed no deadline or market list. Management has also upgraded its FY27 Prestige & Above volume-growth expectation to 30% and retained EBITDA-margin guidance of around 20%, despite Rs 27 crore of packaging-cost impact in Q2 FY27.