Radico Khaitan Q2 FY27 results: net profit down 14.0% to ₹232.35 crore, revenue down 46.2%

How did Radico Khaitan perform in Q2 FY27?

Radico Khaitan reported consolidated revenue of ₹5,583 crore for Q2 FY27, compared with ₹10,370 crore in Q2 FY26 and ₹5,868 crore in Q1 FY27. Revenue fell 46.2% year on year and 4.9% sequentially. On a standalone basis, revenue was ₹5,582.71 crore, while profit after tax was ₹230.87 crore.

Consolidated EBITDA was ₹357.26 crore and EBITDA margin was 6.4%, compared with ₹469.80 crore and 4.5% in Q2 FY26. Against Q1 FY27, EBITDA rose 2.4% and margin expanded 0.5 percentage points. Profit before tax was ₹307.72 crore, tax was ₹76.84 crore and net profit was ₹232.35 crore.

Net profit fell 14.0% from ₹270.08 crore in Q2 FY26 but rose 1.2% from ₹229.60 crore in Q1 FY27. Basic EPS was ₹17.34, against ₹20.18 in Q2 FY26 and ₹17.15 in Q1 FY27. The results were unaudited and approved by the board on 27 October 2026.

What changed in Radico Khaitan's costs and profit?

Compared with Q2 FY26, cost of materials was ₹927.10 crore, down ₹751.45 crore, while employee cost was ₹66.25 crore, down ₹47.48 crore. Finance costs fell ₹20.80 crore to ₹11.42 crore and depreciation fell ₹30.46 crore to ₹43.18 crore; other expenses were down ₹3,834 crore at ₹4,253 crore.

Total expenses fell ₹4,726 crore to ₹5,280 crore from Q2 FY26. Other income increased ₹1.63 crore to ₹5.05 crore, and tax expense decreased ₹14.83 crore to ₹76.84 crore. Q2 FY26 included an exceptional charge of ₹6.99 crore, while Q2 FY27 had no exceptional item.

Against Q1 FY27, total expenses fell ₹291.60 crore, including a ₹340.92 crore reduction in other expenses. Cost of materials increased ₹72.54 crore to ₹927.10 crore, other income rose ₹3.28 crore to ₹5.05 crore and tax increased ₹1.46 crore to ₹76.84 crore. The filing did not give a full explanation for the cost movements.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets were ₹5,495.67 crore, compared with ₹4,971.53 crore on 31 March 2026. Total equity rose to ₹3,669.91 crore from ₹3,315.73 crore, while borrowings fell to ₹247.07 crore from ₹331.82 crore and cash declined to ₹53.85 crore from ₹70.26 crore.

Inventories were ₹1,260.6 crore against ₹1,165.59 crore, trade receivables were ₹1,516.88 crore against ₹1,189.55 crore, and trade payables were ₹445.02 crore against ₹325.7 crore on 31 March 2026.

In H1 FY27, operating cash flow was ₹378.28 crore, compared with ₹385.34 crore in H1 FY26. Investing cash flow was negative ₹155.11 crore against negative ₹143.15 crore, financing cash flow was negative ₹239.58 crore against negative ₹247.15 crore, and capital expenditure was ₹163.91 crore against ₹117.41 crore.

How has Radico Khaitan done over the last 8 quarters?

Revenue peaked at ₹10,370.24 crore in Q2 FY26 and bottomed at ₹4,440.9 crore in Q3 FY25 within the period provided. It was ₹5,582.71 crore in Q2 FY27 after ₹5,867.69 crore in Q1 FY27, so the latest reading was lower than the preceding quarter. EBITDA margin has moved upward from 4.0% in Q4 FY25 to 6.4% in Q2 FY27.

Net profit peaked at ₹270.08 crore in Q2 FY26 and bottomed at ₹92.07 crore in Q4 FY25 in the stated period. It rose to ₹229.6 crore in Q1 FY27 and ₹232.35 crore in Q2 FY27. The latest margin of 6.4% was above the 4.5% recorded in Q2 FY26 and the 5.9% recorded in Q1 FY27.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026 on 27 October 2026, following a review by the audit committee. The statutory auditors, Walker Chandiok & Co LLP, issued limited review reports on the results.

The company also filed an investor presentation and announced leadership changes. Dilip Kumar Banthiya was appointed an additional whole-time director and Executive Director and CFO for 3 years from 28 October 2026, subject to shareholder approval, while Saket Somani was designated Deputy CFO from that date. The same-day filings did not disclose a dividend or a fund raise.

What did Radico Khaitan's management say?

Management said the second quarter of FY27 had the company’s highest quarterly volume, revenue and profitability in its history. It raised FY27 Prestige & Above volume-growth guidance to 30% and maintained EBITDA-margin guidance at around 20%. Luxury-portfolio value-growth guidance was maintained at 25%, while whisky and brandy Prestige & Above volume growth was expected to be upward of 20%.

Management said Q2 packaging costs had an impact of ₹27 crore and that the company was managing volatile grain, glass, PET and laminate costs through procurement, value engineering, manufacturing integration and product mix. It said West Asia disruption and higher export freight could pressure margins and pricing, and that working-capital and raw-material stocks could remain elevated if costs stayed volatile.

Management said vodka reached 6.3% of IMFL in Q2, company vodka volumes grew about 49%, and flavours represented 75% of the vodka range. It said the company had reached four UK airports and about 70 duty-free outlets, with a target of 100 travel-retail outlets. The call also identified the HSN 2208 review and the Spirit of Kashmyr legal matter as risks.

How did Radico Khaitan shares react?

Radico Khaitan was up 0.3% after 5 minutes and down 0.8% after 15 minutes, with the stock down 0.5% after 30 minutes from the price when the filing appeared. On the reaction day, the stock closed 2.1% above its pre-results close, compared with a 1.6% median rise for the industry and a 0.9% rise for the Nifty Midcap 150.

By the next day's close, the stock was 1.2% above its pre-results close, while the industry median was 1.3% higher; by the fifth session, it was 1.2% above the pre-results close, against a 2.4% industry median move. The stock therefore lagged the industry median by 2.5 percentage points on the next day and 1.2 percentage points after five sessions.

Earlier reaction-day moves were 4.3% on 28 July 2026, 0.1% on 6 May 2026 and 5.4% on 22 January 2026. The stock was also down 0.6% on 29 October 2025, up 0.8% on 31 July 2025, down 1.6% on 24 April 2025, up 1.4% on 29 January 2025 and down 0.7% on 24 October 2024.

How did other Breweries & Distilleries companies do?

Five other Breweries & Distilleries companies filed for the quarter. Their median revenue growth was 6.8%, while all five grew faster than Radico Khaitan and none grew slower than the company. Radico Khaitan’s revenue declined 46.2% from Q2 FY26.

Of the six companies for which profit was compared, four reported higher profit. Radico Khaitan reported consolidated net profit of ₹232.35 crore, down 14.0% from Q2 FY26, while its EBITDA margin increased to 6.4% from 4.5%.