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Radico Khaitan Q4 PAT climbs 60% YoY to Rs 91 cr

07-May-25 10:24 Hrs IST

Revenue from operations (excluding excise duty) jumped 20.9% YoY to Rs 1,304.08 crore during the quarter ended 31st March 2025.

Profit before tax (PBT) climbed 58.8% YoY to Rs 121.50 crore in Q4 FY25.

EBITDA stood at Rs 174.5 crore, recording the growth of 38.9%, as compared with Rs 125.6 crore posted in corresponding quarter last year. EBITDA margin improved to 13.4% in Q4 FY25 as against 11.6% in Q4 FY24.

Total Indian made foreign liquor (IMFL) volume increased 27.9% to 9.15 million cases in Q4 FY25 from 7.16 million cases in Q4 FY24. Prestige & above volume jumped 16.8% to 3.40 million cases in Q4 FY25, up 16.8% YoY.

During the quarter, prestige & above brands net sales rose 22.1% to Rs 614.8 crore as against Rs 503.5 crore recorded in same period last year.

During Q4 FY2025, A&SP was 7.6% of IMFL sales compared to 7.4% in Q4 FY2024. On a quarterly basis, the amount may vary but the company expects to maintain A&SP spend around 6% to 8% of our IMFL revenues to be able to drive the sales momentum.

Gross margin during the quarter was 43.5% compared to 41.0% in Q4 FY2024. Gross Margin improved both on Yo-Y and Q-o-Q basis due to the ongoing premiumization in the IMFL business coupled with a relatively stable raw material scenario. The company is optimistic that the pricing scenario for ENA and grains will remain stable going forward during FY2026. Further, moderating food and retail inflation shall support overall consumption.

Lalit Khaitan, chairman & managing director said: 'Over the past few years, our focus on expanded backward integration, enhanced distribution capabilities, a strong innovation pipeline, and impactful consumer engagement has propelled our growth. With the Indian spirits industry witnessing an increasing shift toward premium and luxury brands, we are well-positioned to capitalize on long-term opportunities in this evolving market.

Our growth this year was broad-based across both brands and geographies. The first half of the year was marked by industry and regulatory headwinds that impacted volume growth in the regular category. Additionally, rising grain and ENA prices posed further challenges. Despite this, we delivered strong volume growth and upheld our margin expansion commitments.

Continuing our commitment to innovation, we introduced 8PM Premium Black in Q1 FY26 with a bold new look, designed to enhance brand imagery while highlighting its unique product story, crafted around the harmony of eight select notes. As we move forward, the first quarter of FY26 will see the launch of two luxury brands'projects in development for the past two years. These launches represent a significant leap in Radico Khaitan's premiumization journey, reaffirming our belief that the best is yet to come. Additionally, we will enter the super-premium whisky segment within the first half of the year, strengthening our footprint in high-growth categories.

Looking ahead, we anticipate strong double-digit growth in the Prestige & Above category, enhanced profitability, a continued emphasis on cash flow generation, and long-term value creation for our shareholders.'

Radico Khaitan is among the oldest and one of the largest manufacturers of Indian-made foreign liquor (IMFL) in India. It is one of the few companies in India to have developed its entire brand portfolio organically.

The counter declined 3.47% to Rs 2,446.10 on the BSE.