New Delhi: Indian liquor maker Radico Khaitan is targeting around 20% volume growth in its premium-and-above portfolio in FY27, supported by rising demand for white spirits, continued premiumisation and a wider luxury product range.
The company also expects its operating margin to improve by about 120-125 basis points during the financial year, despite near-term uncertainty in raw material prices, Managing Director Abhishek Khaitan said.
Radico Khaitan, which owns brands including Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Magic Moments Vodka, Morpheus Brandy and 8 PM Whisky, reported strong performance in FY26. Its net sales crossed ₹6,000 crore, while EBITDA moved above ₹1,000 crore for the first time.
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Premium Portfolio to Remain Key Growth Driver
The company expects its premium segment to remain central to its FY27 strategy. Khaitan said Radico is aiming for 20% growth in premium volumes, while its luxury portfolio is projected to deliver nearly 25% value growth.
In FY26, Radico Khaitan’s Prestige & Above category sold 16.7 million cases out of total sales of 36.62 million cases. The segment accounted for 45.6% of overall volumes and generated ₹3,063.7 crore, contributing more than 70% of the company’s Indian-made foreign liquor revenue.
Brands in this portfolio include Magic Moments, After Dark, Morpheus Brandy and Royal Ranthambore.
The company’s EBITDA margin stood at about 16.8% in FY26. It expects a further expansion of around 125 basis points in FY27, led by improved product mix, higher realisations from premium labels and strong growth in white spirits.
Luxury Portfolio Expected to Grow 25%
Radico Khaitan’s luxury business, which includes Rampur Indian Single Malt, Jaisalmer Gin, Kohinoor Dark Rum, Virasat Indian Single Malt and Sangam World Malt, recorded turnover of around ₹475 crore in FY26.
The company expects this portfolio to grow by approximately 25% over the next two to three years as more consumers move towards premium and aspirational alcohol brands.
To strengthen its position in the Indian single malt market, Radico recently launched Rampur 1943 Virasat. The new expression is priced between ₹3,500 and ₹4,000 for a 750 ml bottle and is positioned as an affordable luxury offering.
The launch is intended to help the company reach consumers entering the premium single malt category while also expanding its presence across different price points.
Rampur Indian Single Malt currently has nine expressions, with prices ranging from around ₹8,500 to as high as ₹5 lakh per bottle. The company has invested in malt production and maturation capacity over several years to support its long-term luxury ambitions.
Radico Khaitan also said Rampur is the only Indian single malt brand currently available through Air India’s international flight network.
White Spirits, Especially Vodka, Gain Momentum in India
A major part of Radico Khaitan’s FY27 growth plan is linked to the increasing popularity of white spirits, particularly vodka.
According to Khaitan, vodka’s share of India’s spirits market was around 3% three years ago. It rose to 4.5% last year and reached about 6% during the April-June quarter this year.
Globally, vodka represents nearly 28% of the spirits market, indicating significant room for growth in India.
Radico believes younger consumers and women are increasingly driving demand for vodka, gin and other white spirits. The trend is also being supported by flavoured products, easier-to-drink formats and changing social drinking preferences.
Magic Moments Vodka, Radico Khaitan’s flagship vodka brand, holds nearly 60% market share in India’s vodka segment. The brand sold more than one million cases every month between April and June, taking quarterly sales to around 3.3 million cases.
This was significantly higher than the 2.27 million cases sold in the corresponding period a year earlier, reflecting growth of more than 45%.
Flavoured vodka remains an important growth area for the company. It accounts for nearly 65-70% of India’s vodka market, with flavours such as mango, jamun and thandai gaining traction among younger buyers.
Global Expansion and Duty-Free Push
Radico Khaitan currently earns about 8% of its total sales value from overseas markets. Its brands are available in around 100 countries and across 63 duty-free outlets.
The company plans to increase its duty-free presence to 100 outlets as it looks to build wider international recognition for Indian spirits.
Indian single malts and premium home-grown liquor brands are gaining more visibility in global markets, particularly among consumers looking for new whisky and craft spirit experiences.
Radico Khaitan expects exports to become an increasingly important part of its long-term growth strategy, with Rampur Indian Single Malt and Jaisalmer Gin among the key brands driving overseas interest.
Limited Capex Planned for FY27
The company does not plan any major capital expenditure in FY27. Its annual spending is expected to remain in the range of ₹150 crore to ₹175 crore.
Around ₹50 crore to ₹60 crore will be used for maintenance capital expenditure, while the remaining investment will go towards brand-focused requirements such as malt maturation, barrels, facilities and related capacity support.
With premium spirits, luxury single malts, flavoured vodka and overseas expansion emerging as key pillars, Radico Khaitan is positioning itself for another year of growth in India’s evolving alcoholic beverages market.
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