This Alcohol stock which deals in the business of manufacturing Indian Made Foreign Liquor (IMFL), and is a leading supplier of branded IMFL to the Canteen Stores Department, surged upto 7 percent after the company expects its premium product to cross Rs. 500 crore in FY26.
Price Movement
In Thursday’s trading session, Radico Khaitan Ltd‘s share price touched a day’s high of Rs. 2,157.35, which was up by 6.97 percent. The share price reiterated from the day’s high and was trading at Rs. 2,143.95, which is 6.31 percent higher than the previous closing price of Rs. 2,016.75.
In the past year, the stock has delivered around 26 percent and has outperformed the Nifty Index.
What Happened?
The company’s stock was in focus after the company’s exchange filing revealed, that Radico plans to expand its premium brand “Royal Ranthambore Whisky” with its introduction into the Canteen Stores Department (CSD). This move by the company was made after witnessing exceptional growth since its 2021 launch. The brand has gained acceptance driven by customer preference for premium Indian Spirits.
In the premiumization segment, Radico Khaitan is at the forefront of this trend with luxury & semi-luxury brands now contributing to its topline of around Rs. 100 crore in Q3FY25 and Rs. 250 crore in 9MFY25. Based on domestic and international demand, the company expects this to cross Rs. 500 crore net sales mark in FY26.
Radico Khaitan, with its blended scotch whisky category in CSD, had exceeded 10 Lkah cases annually and the company expects to secure ~10 percent of the market share in this segment over the next year.
Management Commentary
The MD of Radico Khaitan, Abhishek Khaitan said “Royal Ranthambore has recorded a strong growth over the last two years, and its entry into CSD will further accelerate this momentum in the future.
This expansion aligns with our vision to strengthen our luxury & semi-luxury brand portfolio and cater to evolving consumer preferences”.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 1,294 crore which increased by 11.45 percent year on year, from Rs. 1,161 crore in Q3FY24 and a 15.94 percent increase from Rs. 1,116 crore in Q2FY25.
Its net profit increased by 26.66 percent year on year, from Rs. 75 crores in Q3FY24 to a profit of Rs. 95 crores in Q3FY25. Quarterly, the profits were increased by 17.24 percent from Rs. 81 crores.
Business Segment
The company recognizes its operational revenue from Alcohol and Alcoholic Beverages as of the December 2024 quarter.
About the company
Radico Khaitan Limited (RKL), formerly Rampur Distillery and is among India’s oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL). The company has evolved from a bulk spirits supplier to a leading IMFL company with a diverse brand portfolio.
Written by Santhosh S
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