Premiumization in overdrive: 36% P&A growth, margin expansion ahead of guidance

Q1 achieved 36% YoY, raised from prior 20% guidance—beat significantly

Q1: 20.7% (536 bps YoY expansion), gross margin 49.1% (610 bps expansion), packing costs ₹30 Cr headwind absorbed

Net debt reduced ₹138 Cr since Mar 2026; on track for Q2 FY27 achievement

3% YoY growth; P&A +36% offset by regular segment decline (policy impact)

Strong consumer acceptance, flavor-led innovation (75% flavored mix), multiyear vodka structural growth underpinning

Prior: 20% FY27 guidance. New: >25%. Q1 delivered 36%, so revised range reflects sustained but conservative midpoint.

Base ₹475 Cr (FY26). Targeting ₹594+ Cr (FY27). On track after Q1 momentum in Rampur, Royal Ranthambore, Virasat.

From ~14.2% implied prior to 20.7% in Q1. Guidance maintained at ~20% for FY27 (but elevated vs. historical ~14-15%).

No specific growth guidance; selective in profitable states only. Degrowth expected to persist from Andhra Pradesh, Maharashtra policy impacts.

Launched in 10-12 states, 'positive traction' but management tone: 'wait and watch.' No numerical targets given; calls for patience.

Luxury portfolio ₹475 Cr base FY26, guiding 25% growth. On track to deliver ₹594+ Cr FY27. P&A portfolio >25% growth, broad support from Rampur, Virasat, Royal Ranthambore.

Guiding 20% EBITDA for FY27. If costs fluctuate, strong P&A momentum should offset. Already achieved 20.7% Q1; when closer to year, more clarity.

Competitive segment, large. Initial traction positive but journey will take time. Distribution done, seeding phase ongoing. Will wait and watch.

Vodka new flavors (ethnic India focus), tequila launch in FY27, rest focus on existing brands (Royal Ranthambore, Virasat, Morpheus).

Non-IMFL ~11-11.5%, IMFL 23%+. Historically 8-11% range; fell to 6-7% under inflation 2-3 years back. Current 11-11.5% sustainable per management.

Debt-free target being achieved. Maintenance capex ₹150-170 Cr annually. 20% minimum dividend policy announced. Acquisitions only if shareholder-accretive; organic growth history preferred.

Largest segment. Internal research-backed relaunch. After Dark Blue resonates; launched in UP with positive signals. No blend change, packaging-driven premium appeal.

Too early to comment. Estimate retail price down only 7-8%. Rampur, Virasat already priced higher than competition. Consumer seeks quality. No strategy change.

Too soon. Luxury portfolio very differentiated; single malt where price elasticity high. Indian malt outpacing global in India. Taste > price.

Guesstimate: double the volume %. So if 3% volume, ~6% value.

Progressive policy. P&A industry grew 9% Q1; Radico P&A grew 83%. Last reform (1.5y back) saw P&A 28%, portfolio doubled. Portfolio strong (Rampur, Virasat, Royal Ranthambore, Morpheus). Long runway.

Outsourced ENA available. Industry capacity expanded; most states now ENA surplus. No compelling capex case now. If debt-free and ROI available, may consider future.

Largest market. Positive signs; tertiary ordering started. Industry meetings ongoing with excise. Morpheus brandy doing well in premium. Wait and watch; if opens like Andhra, could be huge (we became 25-26% market share there).

100% valid concern. Magic Moments launched 2006 at 1% vodka saliency, hundreds competed. Magic became 60% leader in 2 decades. Category expands, consumer sticks to 1-2 brands. Competition healthy; expands category. Vodka multiyear story.

MML settled at 6-7 lakh cases, ~7-8% Radico market share there. IMFL industry down 20% Q1 vs MML; our P&A up 10%. Post-Dec, expect above-MML IMFL to recover as base normalizes.

Radico creates brands organically (1998: 8PM). 7-8% spend maximum; depends where spent. Direct marketing, visibility, in-shop, digital ROI strong. Last 10 years always outpaced industry P&A growth.

Focus is P&A, upgraded guidance 20% to 25%. Regular in profitable states only; will follow local industry. No specific regular growth target.

Was largest white spirits market when wet. Brands very popular (8PM). Waiting for reform signal (industry waiting >decade). Currently no noise.

No QoQ guidance. Annual guidance 25%+. Brands super buoyant, huge P&A traction seen.

Radico never loads trade; credit control strong. Magic Moments tertiary sales happening organically. Multiyear vodka structural shift. Month-on-month strong traction.

Andhra Pradesh: earlier not present; when opened, converted all to own volume, became 25% market share leader. If Tamil Nadu opens, anyone's guess. Currently Tamil Nadu = small royalty only.

Globally 28%. Started Magic 2006 at <1%, took 20 years to 6%. Now 4-5y at 20%+ growth. Gen Z, cocktail culture, restaurant growth, lifestyle shift. Multiyear structural shift. Category expands, consumer picks 1-2 brands.

Concentrating on flavor innovation (ethnic India flavors). Doing extremely well at 43% growth. No mid-premium launch plans.

P&A one part. Luxury and semi-luxury portfolio also gaining traction; higher you go, higher margins. On-trade channel focus, malt advocacy. Luxury will be important 10-15y out.

Never acquired brands. Capability to create own brands; belief in build vs. buy. Robust pipeline. No acquisition opportunity seen.

Brands in 100 countries. Always brand > pure selling (value, prestige, luxury). Not just diaspora but mainstream. 63 travel retail outlets. Rampur, Jaisalmer most loved globally. Focus: brand building.

Volume 5-6%, value obviously higher.

Airports: were 50, now 63. Confident of 100. Also on Air India (single malt), SpiceJet (gin). On-trade: doing more than 1,000 events planned (manpower, advocacy, events aggressive).

Influencers big draw, yes. Already have plans. Will see across digital channels very soon.

Flavored brandy in international market, not India domestic. RTD: not looking at moment.

Q1 delivered 36%; strong brand momentum (Magic, Morpheus, After Dark); innovation pipeline robust (vodka flavors, tequila). Regular segment expected to remain negative.

Base ₹475 Cr. Rampur, Virasat, Royal Ranthambore, After Dark all gaining traction. Premium pricing power intact despite UK FTA concerns.

Q1: 20.7%. Gross margin 49.1% (+610 bps YoY) supported by benign raw materials + price increase (+75 bps). Risk: ENA costs, packing volatility. Confident of trajectory but 'pluses, minuses' acknowledged.

Disciplined approach; no major expansion planned. ENA outsourced; industry surplus. Capex directed to maintenance, efficiencies, capacity optimization.

Andhra Pradesh route-to-market change, Maharashtra MML introduction (35% industry degrowth), Karnataka/Maha pricing rationalization, Bihar dry-state limbo. Regular segment highly exposed; government policy calls determine state-by-state viability.

Packing material price volatility caused ₹30 Cr headwind Q1 (despite benign raw materials). ENA availability currently surplus but could tighten; company monitoring West Asia crisis. Price increase of +75 bps offset headwinds in Q1, but may not recur if input normalizes.

UK FTA tariff reduction allows Grey Goose, Belvedere, other imported spirits to price competitively. Luxury segment (Rampur, Virasat, single malts) at risk if global imports gain shelf space and pricing power. Management downplays (7-8% retail price impact), but segment differentiation unproven against global brands in consumer perception.

Morpheus prestige whisky launched in 10-12 states, 'initial traction positive' but management tone cautious ('journey takes time, wait and watch'). Tequila and vodka flavor innovation pipeline but early-stage. If new brands underdeliver, may pressure P&A growth guidance (25% target depends on mix breadth).

Heavy on-trade expansion (1,000+ events FY27, 63 airports, airline partnerships) concentrates brand equity in premium on-trade. If on-trade channel consolidates or premiumization demand falters, exposure is high. Regular segment decline also limits volume diversification.