The Indian alcoholic beverages industry is witnessing steady growth, driven by rising disposable incomes, evolving consumer preferences, and increasing urbanization. Within this sector, Radico Khaitan Ltd and United Breweries Ltd stand out as two prominent players with strong brand portfolios and market presence.
Below is the analysis of both companies across key financial metrics, market performance, product strategies, and growth outlook to understand which offers better value and long-term investment potential.
Industry Overview
India’s alcoholic beverages market is poised for significant growth, with projections estimating a value of USD 200 billion by 2025 and reaching USD 300 billion by 2035, driven by a robust compound annual growth rate of 7.2 percent. The market has already seen steady expansion from 2020 to 2025, where it grew at a CAGR of 6.8 percent.
Both companies are key players in India’s alcohol industry, which is characterized by its diversity and rapid growth. The rising demand for premium and international alcohol brands is a notable trend in the market, and both Radico Khaitan and United Breweries have capitalized on this trend.
Companies overview
Radico Khaitan is the oldest and one of the largest manufacturers of Indian Made Foreign Liquor (IMFL) in India. The Company was earlier known as Rampur Distillery Company. Over the years, it has emerged as a major bulk spirits supplier and bottler to other spirit manufacturers.
It has become one of the most admired liquor brands across India and is engaged in the manufacturing and trading of Alcoholic products such as Indian Made Foreign Liquor (IMFL), Alcohol, Country Liquor, etc. It also has its presence in India as well as various other global markets. The top product category of Radico Khaitan includes: 8 PM Premium Black Whisky, Rampur Indian Single Malt Whisky, After Dark Blue Whisky, Morpheus Super Premium Brandy, etc
United Breweries the unrivaled market leader of the Indian beer market, is primarily engaged in the manufacture, purchase, and sale of beer and non-alcoholic beverages.
The company sells beer under its flagship brand ‘Kingfisher’. Kingfisher Strong is India’s largest-selling beer. International beer brands Heineken and Amstel, and the import portfolio complement United Breweries’ Kingfisher franchise. The top product categories of United Breweries include: Kingfisher Premium, Heineken Silver, London Pilsner, etc
Financial analysis
The Revenues of Radico Khaitan have grown by 20.77 percent YoY from Rs . 1,080.92 crores in Q4FY24 to Rs. 1,305.46 crores in Q4FY25, whereas the revenues of United Breweries have grown only by 7.92 percent. YoY from Rs . 2,159.84 crores in Q4FY24 to Rs. 2,330.99 crores in Q4FY25
The net profit of Radico Khaitan has grown by 70.78 percent YoY from Rs . 53.91 crores in Q4FY24 to Rs. 92.07 crores in Q4FY25, whereas the net profits of United Breweries have grown only by 20.16 percent. YoY from Rs . 81.2 crores in Q4FY24 to Rs. 97.57 crores in Q4FY25.
The gross profit margin of Radico stands at 43.5 percent in Q4FY25, whereas the gross profit margin of United Breweries stands at 42.1 percent, and the earnings per share of Radico stands at Rs 6.88 where whereas for United Breweries it’s around Rs.3.69
Radico Khaitan Limited PE is currently trading at 102, and United Breweries Ltd PE is trading at 116 when compared to the industry PE of 31. Radico has a ROE of 13.6 percent, whereas United Breweries has a ROE of 10.8 percent
Facilities
United Breweries operates a robust network of 21 breweries across India, with a total installed capacity of over 36 million hectolitres per annum (hlpa), making it the largest beer producer in the country, strategically located to ensure efficient distribution and meet regional demands.
These facilities are equipped to produce a diverse range of beer brands, including Kingfisher, Heineken, and Kingfisher Ultra. Recent expansions have enhanced their capability to produce Heineken in Karnataka, with plans to extend production to additional states like Rajasthan, West Bengal, Telangana, and Odisha.
Radico Khaitan is one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant business barriers to entry. The Company has been successfully building its brand equity in international markets and currently exports its products to over 85 countries. The Company has three distilleries in Rampur (Uttar Pradesh) and two in joint venture RNV in Aurangabad (Maharashtra) in which Radico Khaitan owns 36% equity.
Presently, the Company has 33 bottling units spanning across the entire country, of which 5 are owned and 28 are contract bottling units with a total annual capacity of 160 million litres. Apart from this, it has a strong sales and distribution network with a presence in retail and on-trade through over 75,000 retail and 8,000 on-premise outlets in the relevant segments in different parts of India.
PLANS
For FY25 and FY26, United Breweries has announced a significant capital expenditure of ₹750 crore, including the construction of a greenfield brewery in Uttar Pradesh, marking the company’s first major expansion in over a decade. Additionally, the company is doubling the number of retail coolers, investing in new bottle stock, and enhancing logistics and warehousing capabilities.
These investments are essential to support the growing premium portfolio and to ensure cold beer availability across geographies.UBL’s CapEx also supports its long-term strategic goal to become a category creator rather than a category participant, emphasizing premiumisation, capacity building, and technology-driven distribution redesign (under its “Design-to-Win” initiative).
For FY26, while Radico has not announced a specific CapEx figure, it plans to launch two new luxury spirits one each in the brown and white spirit categories and further expand the global reach of its high-end brands such as Rampur Indian Single Malt and Jaisalmer Craft Gin. With a target of achieving ₹500 crore in revenue from luxury spirits in FY26, up from ₹340 crore in FY25, a projected 30% growth, Radico is expected to continue investing in branding, innovation, and premium packaging. Managing Director Abhishek Khaitan emphasized that these growth ambitions will be powered by the now fully operational infrastructure laid down in previous years.
Written By Likesh Babu S
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