# 1. Financial Performance ## A. Key Figures * Gross Margin: 46.9% (QoQ +290 bps, YoY +350 bps) * EBITDA Margin: 17.2% (+300 bps YoY) * **Net Debt Reduction:** **₹209 Cr** since Mar-25 ## B. Revenue Growth * **Promotional Accounting:** Buy-one-get-one offers are embedded within revenue under A&SP budget, maintaining clean revenue recognition. ## C. Gross Margin Expansion * **Margin Drivers:** Robust gross margin expansion driven by **soft raw material costs** and **strong premiumization**, with mix shift contributing meaningfully. * **Pricing Discipline:** Company prioritizes brand equity and profitability over promotional pricing, even amid sector-wide margin tailwinds. ## D. EBITDA Margin Improvement * **Earnings Inflection:** Premium portfolio focus and operating leverage delivered sharp margin and return ratio improvement, marking a structural earnings turnaround. * **Operational Resilience:** Record performance underpinned by cost discipline and scalable operations, enhancing earnings quality and cash flow. ## E. Balance Sheet Strength * **Debt-Free Path:** Aggressive deleveraging positions company to be **fully debt-free by FY27**, supported by strong profitability and cash generation. * **Financial Position:** Robust balance sheet and disciplined capital allocation reinforce ability to sustain profitable growth. --- # 2. Volume & Pricing Trends ## A. Key Figures * IMFL Volume: 9.75 million cases (Q3 FY26, +16.7%) * **Regular Category Volume:** **+33%** YoY * **Prestige & Above Volume:** **+26%** YoY · **Value Growth:** **+29%** YoY (Realizations +8%) ## B. IMFL Volume Growth * **Record Volume Performance:** Highest-ever quarterly IMFL volume driven by strong double-digit growth in the regular category. * **Channel Optimization:** Significant volume uplift attributed to the revamped route-to-market in Andhra Pradesh. ## C. Premiumization Impact * **Pricing Power Realized:** Prestige & Above segment delivered robust volume and value growth, with healthy realization expansion. * **Premium Momentum:** Strong double-digit growth in both volume and value underscores sustained premiumization trend. --- # 3. Brand & Product Performance ## A. Key Figures * **Luxury Portfolio Revenue:** **₹340 Cr** last year · **~₹500 Cr** expected this year * **Magic Moments Vodka Sales:** **₹1,050 Cr** (9M) * After Dark Whisky Volume: 2.4 million cases (9M) ## B. Luxury Portfolio Growth * **Global Recognition Achieved:** Rampur Indian Single Malt becomes the **only Indian spirits brand on Air India First and Business Class**, elevating Indian craftsmanship on international platforms. * **Strategic Premiumization:** Luxury portfolio on track for near-term revenue jump, driven by brand equity over volume, with Jaisalmer Gin’s **over 50% luxury segment share** serving as a growth blueprint. * **Scotland Subsidiary for Premium Expansion:** New entity enables access to falling-cost Scotch inventory and maturation opportunities amid global supply shifts, supporting long-term portfolio diversification. * **Morpheus in Early Growth Phase:** Super-premium whiskey launched in eight states with encouraging reception at a premium price point, reflecting patient, organic brand-building philosophy. ## C. New Launch Momentum * **Repackaged 8PM Black Gaining Traction:** Post-redesign rollout across all states driving **40% QoQ growth**, returning brand to positive momentum as a premium volume catalyst. * **After Dark Shows Strong Uptake:** Delivers **40% quarterly and 80% annual growth**, validating positioning in its segment alongside 8PM Black. * **Tequila Entry via Joint Venture:** Radico enters emerging high-margin category through JV with **5% ownership each for Radico, Shah Rukh Khan, and Nikhil Kamath**, marking a new go-to-market approach while maintaining in-house brand development. * **Pipeline of Flagship Launches:** Rampur 1943 Virasat, Spirit of Kashmyr, Kohinoor Rum, and others seen as future pillars, with management expecting them to become **major brands within five years**. ## D. Key Brand Metrics * **Royal Ranthambore Whisky Surges:** Delivers **over 50% Q3 growth** on strong civil and CSD channel demand, signaling effective market penetration. * **Magic Moments Fueled by Innovation:** Vodka brand achieves **18% Q3 volume growth**, underpinning sustained momentum behind flavor-led differentiation. --- # 4. Channel & Distribution ## A. Key Figures * **On-Trade Sales:** **6%-7%** of total sales * **Export Contribution:** **5%** of total volume · **8%** of total revenue (9M) * **Airport Outlet Penetration:** **70%-80%** coverage for luxury brands * **P&A Export Share:** **5–8%** by value · **5%** by volume ## B. On-Trade Expansion * **Strategic Channel Focus:** On-trade prioritized for five years as a driver of **experiential consumption** and **premium brand building**, with dedicated team expansion of **50–70 personnel**. * **Banquet Market Push:** Targeted investment in team and portfolio to capture **wedding and corporate event segments**, reinforcing premium on-trade positioning. * **CSD Entry Delayed:** Morpheus Whiskey’s inclusion in CSD faces structural and procedural hurdles, indicating a **multi-year timeline** for access. ## C. National Distribution * **Luxury Rollout Plan:** Two-year national expansion underway, leveraging Radico’s network for luxury brands excluding Morpheus. * **Premium Visibility Achieved:** High airport retail penetration reflects successful premium brand placement and distribution strength. ## D. Export Contribution * **Global Malt Strategy:** Scotland subsidiary established to secure and mature malt, enabling long-term **vertical integration options** and supply chain control for whiskies. * **Export Growth Trajectory:** Luxury and core portfolios show **steady international demand**, with strategic emphasis on **global travel retail** as a growth vector. * **Subsidiary Leverage:** 100% owned Scottish entity provides ODI-compliant platform for incremental value creation, with formal investment roadmap to follow. --- # 5. Market Share & Geography ## A. Key Figures * **Andhra Pradesh Market Share:** **26%** (up from >15% YoY) * **Telangana Q3 Growth:** **5–6%** (despite Oct–Nov slowdown) * Maharashtra Market Volume: **1.8 million cases/month** (down from 2.4 million) ## B. State-Wise Performance * **Market Leadership in Andhra Pradesh:** Emerged as top player with **strong brandy-driven share gains**, supported by expanded brand availability and agile execution. * **Broad-Based Expansion:** Gained share across key states—Uttar Pradesh, Rajasthan, MP, Haryana, Telangana—on the back of **robust P&A volume growth** outpacing peers. * **Resilient Performance Amid Regional Volatility:** Overcame initial softness in Telangana due to lottery delay, delivering **solid quarter-end rebound**. ## C. Market Share Gains * **Volume Leadership in UP:** Maintains **highest country liquor market share and volume** nationally despite intense competition. * **Strategic Share Management in Brandy:** Aims to **hold current brandy share** and grow in line with industry, prioritizing sustainability over aggressive expansion. * **Banqueting as Brand Engine:** Segment contributes **6–7% of AlcoBev sector**, primarily enhancing brand visibility and trial rather than volume. ## D. Regional Demand Trends * **Sharp Contraction in Maharashtra:** Market declined **~20% in Q3**, reflecting broader demand weakness despite company’s below-average growth in the state. * **Global Macro Pressures Create Sourcing Opportunities:** Slowing economies in US, Europe, and China are disrupting Scotch supply chains, enabling **cost-efficient alternatives via non-traditional malts** without quality trade-offs. --- # 6. Input Cost & Regulatory Risks ## A. Key Figures * **Gross Margin Impact:** **+225 bps** from raw materials YoY * **MML Volume:** **4–5 lakh cases/month** in Maharashtra * **MRP Increase:** Over **Rs. 200** for nip bottles under MML policy ## B. Raw Material Stability * **Favorable Cost Environment:** Raw materials significantly boosted margins, with **ENA and grain prices expected to remain stable to favorable**, supporting near-term margin sustainability. * **Scotch Price Correction:** Prices declining due to supply glut in Scotland, driven by rising competition from malts in India, Japan, and Taiwan eroding Scotch’s exclusivity. ## C. MML Policy Impact * **Policy-Driven Pricing Power:** Maharashtra Made Liquor enabled sharp MRP increases, with current volumes indicating meaningful market uptake. * **JV Participation Under Review:** Company evaluating participation in expanded MML scheme following court ruling allowing broader eligibility. ## D. Collection Risks * **Telangana Receivables Resolution:** Longstanding collection issue nearing full resolution, with recent payments received and full clearance expected within a month. --- # 7. Guidance & Outlook ## A. Margin Expansion Target * **Headline:** Management targets **125 bps annual EBITDA margin expansion** over the next two years, aiming for late teens margin through premiumization and portfolio optimization. * **Headline:** Margin trajectory supported by **favorable cost environment, operating leverage, and financial discipline**, with sustained focus on profitability improvement. ## B. Debt Reduction Plan * **Headline:** Excess cash flow post-debt repayment to be directed toward **dividend payouts**, subject to board approval, signaling enhanced shareholder returns. ## C. Strategic Priorities * **Headline:** Strategic expansion into Scotland via **100% wholly-owned subsidiary** to secure matured malt supply and optimize distillation, enhancing long-term production capabilities. * **Headline:** Capital allocation remains disciplined, with capex focused on **maintenance and essential capacity optimization**, prioritizing capital efficiency and balance sheet strength. * **Headline:** Product & brand strategy to emphasize **consolidation and distribution expansion** over new launches in the near term, leveraging existing innovation pipeline. * **Headline:** Forward outlook underpinned by **strong visibility, robust balance sheet, and alignment with evolving consumer preferences**, reinforcing confidence in long-term value creation.