or a company that has spent decades building its name on value-for-money spirits, Radico Khaitan is increasingly sounding like a luxury business. The numbers from fiscal year 2026 make the case compellingly: record revenue, record EBITDA, record net profit, and a luxury portfolio that expanded by more than a third in a single year. Now, with the blueprint validated, managing director Abhishek Khaitan is mapping out a significantly more ambitious FY27 — one that reaches into new categories, new geographies, and new consumers.
The strategy, in essence, is to keep doing what is already working — but faster, wider, and at higher price points.
A Luxury Portfolio Gaining Real Momentum
Radico Khaitan’s luxury segment has evolved from a prestige experiment into a meaningful revenue engine. The portfolio — spanning Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Virasat Indian Single Malt, Spirit of Kashmir, and Royal Ranthambore — generated combined turnover of approximately Rs 475 crore in FY26, a sharp rise from Rs 350 crore the year before.
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The company expects this portfolio to deliver a further 25% value growth in FY27, driven by the twin tailwinds of premiumisation and expanding distribution. Khaitan has guided that the prestige and above category — the broader segment within which these brands operate — should grow around 20% during the current fiscal year.
FY26 by the Numbers: Records Across the Board
The financial results for FY26 represent the strongest performance in Radico Khaitan’s history across every key metric. The headline figure is an EBITDA of Rs 1,018 crore — a 52% year-on-year increase that signals how significantly the company’s mix has shifted toward higher-margin products.
EBITDA margins expanded to 16.8% for the full year, up from 13.8% a year earlier, with Q4 margins approaching 19% — a level that underscores the operating leverage the company is extracting from its premiumisation strategy. Khaitan attributed the improvement to a combination of favourable product mix and ongoing operational efficiencies across manufacturing and distribution.
The Tequila Move
Perhaps the most eye-catching element of Radico Khaitan’s FY27 roadmap is its announced entry into the tequila category. Khaitan confirmed the company will introduce its own tequila brand before the end of the fiscal year — a move that positions Radico to capture a share of one of India’s fastest-expanding imported spirit segments.
The decision follows a wider strategic push into white spirits, a category the company has been cultivating through its Magic Moments vodka franchise. Magic Moments recorded volume sales of approximately 8.5 million cases in FY26, with growth exceeding 20% — demonstrating Radico’s capacity to compete meaningfully in the white spirits space.
Flavoured white spirits, in particular, are identified by the company as a high-growth subcategory, with changing consumption patterns among younger Indian consumers creating significant runway for innovation-led brands.
Distribution Expansion: From Seven States to Twenty
A critical enabler of the company’s luxury growth ambitions is geographic reach. Virasat Indian Single Malt, among the newer additions to the portfolio, is currently available in seven states and is slated to expand to twenty states during FY27. Spirit of Kashmir, currently distributed across approximately ten states, is on a similar trajectory toward a twenty-state footprint.
The expansion reflects a deliberate sequencing: establish quality and demand in core markets first, then extend distribution as production scale and trade relationships allow. It is a slower path than acquisition-led growth, but Khaitan has been explicit that organic brand building remains the company’s preferred route.
Five Years of Outperformance — and Counting
Radico Khaitan’s volume growth of 21% in FY26 came against an industry backdrop of approximately 6% growth — marking the fifth consecutive year in which the company has outpaced its peers. This sustained outperformance has been reflected in the company’s market capitalisation, which stands at approximately Rs 45,525 crore, with shares having appreciated over 39% in the twelve months prior to reporting.
The combination of record profitability, a luxury portfolio with clear momentum, and a pipeline of new category entries gives Radico Khaitan arguably the most ambitious growth agenda it has presented in recent memory. Whether the tequila bet pays off — and whether luxury margins can be sustained even as distribution broadens — will be the defining questions of FY27.
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