Indian liquor maker Radico Khaitan is betting big on its premium spirits to drive faster growth, and the strategy appears to be paying off.
The company expects its net revenue to grow between 13% and 15% in fiscal year 2027, slightly ahead of market expectations. Analysts tracked by LSEG had forecast an average revenue growth of 13.7%.
Radico Khaitan, which owns popular premium brands such as Jaisalmer gin and Rampur whisky, also reported a strong 62% jump in profit for the third quarter, underscoring robust demand for higher-priced liquor.
Managing Director Abhishek Khaitan said sales volumes in the company’s “prestige and above” segment—which contributes about half of total revenue—are expected to rise by more than 15% in FY27. In contrast, growth in the company’s more affordable “regular and others” category is likely to remain in the mid-single digits.
India’s consumption story continues to show a clear divide. While overall demand faces pressure, wealthier consumers are still spending freely, benefiting premium-focused businesses such as liquor companies and jewellers.
According to Khaitan, younger consumers are increasingly choosing better-quality, premium drinks, even though they may be drinking less frequently than older generations.
“People want to spend on good things in life post-Covid,” he said.
On the international front, Radico Khaitan is working to diversify its export markets as higher US tariffs impact Indian shipments. Exports currently account for about 10% of revenue in its Indian-made foreign liquor business, which sells to over 100 countries.
The company has already built sufficient inventory in the US ahead of the tariff rollout, enough to cover the current quarter. However, it is actively looking beyond the US.
“We are focusing more on other markets in case the tariffs don’t come down in the United States,” said Sanjeev Banga, president of Radico Khaitan’s international business.
