New Delhi: Radico Khaitan is placing a strong bet on premium and luxury spirits to drive future growth, with demand rising not only in metros but also in Tier-II cities. The company believes changing consumer preferences, higher aspirations, and a younger customer base are pushing people towards better-quality alcoholic beverages.
Abhishek Khaitan, Managing Director of Radico Khaitan, said that consumers are increasingly shifting to prestige and luxury segments. “People today want to consume better products. This change is being driven by higher aspirations, young consumers, and growing demand from Tier-II markets,” he said.
Radico Khaitan, which owns popular brands such as 8PM whisky, Magic Moments vodka, and Jaisalmer gin, reported strong financial performance in the September 2025 quarter. The company posted a 73 percent year-on-year rise in net profit to ₹139.5 crore, while total income grew 29.4 percent to ₹5,059 crore. The company expects overall positive momentum in consumer demand to continue in the coming quarters.
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The company said it will continue to invest heavily in marketing across its core brands and new launches to maintain growth and market share. According to Khaitan, Radico’s prestige and above (P&A) segment is expected to grow at around 15 percent annually over the next three years. As volumes increase, operating margins are also expected to improve. Currently, the P&A segment contributes nearly 68 percent of the company’s total sales value.
Radico Khaitan has also entered the super-premium category, which Khaitan described as the largest profit pool in the spirits industry. “Earlier, we were not present in this segment, but now we expect nearly 30 percent growth from it,” he said.
In FY25, luxury and semi-luxury spirits contributed ₹340 crore to the company’s annual revenue. For the current financial year, Radico Khaitan expects this figure to rise to around ₹500 crore.
Alongside domestic growth, the company is also working to strengthen its presence in international markets.
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