In its quarterly results for the period ending September 30, Radico Khaitan announced a notable 24% increase in profit, driven largely by rising demand for its premium alcohol brands.
However, the company is facing significant pressure on its profit margins for lower-priced liquor due to high grain prices, as Managing Director Abhishek Khaitan pointed out. He suggested that releasing government rice stocks could help alleviate some of this pressure, which has been a major challenge in the alcohol market.
While premium brands like Rampur Indian Whiskey and Magic Moments vodka saw a 12% growth, Radico’s regular brands, such as 8 PM, experienced a 12% decline in sales. The company anticipates modest growth in its regular segment and strong growth in its premium category in the next quarter.
Khaitan also mentioned that recent changes in policies, such as Andhra Pradesh’s new Excise Policy for 2024-26, could boost sales, especially in the southern region of India, which is expected to lead demand, followed by the west and north.
