Radico Khaitan Q4 FY25 results: net profit up 70.8% to ₹92.07 crore, revenue up 15.2%

How did Radico Khaitan perform in Q4 FY25?

Radico Khaitan reported consolidated revenue of ₹4,485 crore for Q4 FY25, up ₹590.79 crore or 15.2% from Q4 FY24. EBITDA rose ₹54.99 crore or 44.9% to ₹177.53 crore, while the margin expanded 0.9 percentage points to 4.0%. Profit before tax was ₹121.43 crore, up 58.6%, and the net profit was ₹92.07 crore, up 70.8%.

Basic EPS increased to ₹6.88 from ₹4.03 in Q4 FY24. Sequentially, revenue rose ₹44.53 crore or 1.0% from Q3 FY25, but EBITDA fell ₹6.40 crore or 3.5% and the margin declined 0.1 percentage points to 4.0%. Profit before tax fell 6.5%, net profit fell 3.6% to ₹92.07 crore, and EPS fell to ₹6.88 from ₹7.14.

On the standalone basis, revenue was ₹4,485.43 crore, up 15.2%, while profit before tax was ₹90.71 crore and profit after tax was ₹56.79 crore. The Board approved the audited standalone and consolidated results for the quarter and year ended 31 March 2025, with an unmodified audit opinion.

What changed in Radico Khaitan's costs and profit?

Total expenses increased ₹545.08 crore or 14.3% from Q4 FY24 to ₹4,365 crore. Cost of materials rose ₹150.23 crore or 23.5% to ₹789.87 crore, employee cost increased ₹5.36 crore or 11.4% to ₹52.31 crore, and other expenses rose ₹429.96 crore or 13.9% to ₹3,518 crore.

Finance costs increased ₹4.81 crore or 28.8% to ₹21.50 crore, while depreciation rose ₹4.46 crore or 14.1% to ₹35.98 crore. Other income fell ₹0.86 crore or 38.4% to ₹1.38 crore. Tax expense increased ₹11.03 crore or 55.8% to ₹30.79 crore, and there was no exceptional item.

Management said gross margin was 43.5%, compared with 41% in Q4 FY24 and 43% in Q3 FY25. The CFO attributed the improvement to ongoing premiumisation in the IMFL business and a relatively stable raw-material scenario.

How did Radico Khaitan do in FY25 as a whole?

For FY25, consolidated revenue was ₹17,098.54 crore, up ₹1,614.66 crore or 10.4% from FY24, while total income rose 10.4% to ₹17,103.39 crore. Profit before tax increased ₹122.55 crore or 35.8% to ₹464.56 crore.

Net profit for FY25 was ₹345.61 crore, up ₹83.44 crore or 31.8% from FY24, and EPS rose 31.8% to ₹25.84. The Board recommended a dividend of 200%, or ₹4 per equity share of ₹2 each, subject to shareholder approval at the Annual General Meeting.

What do the balance sheet and cash flow show?

At 31 March 2025, total assets were ₹4,638.96 crore, compared with ₹4,412.28 crore on 30 September 2024, while total equity rose to ₹2,753.71 crore from ₹2,564.15 crore. Borrowings fell to ₹630.68 crore from ₹815.25 crore, and cash declined to ₹40.17 crore from ₹56.17 crore.

Inventories increased to ₹1,076.83 crore from ₹908.38 crore and trade receivables to ₹1,182.18 crore from ₹1,162.24 crore. Trade payables rose to ₹312.53 crore from ₹297.17 crore. For FY25, operating cash flow was ₹362.86 crore, compared with ₹182.86 crore in FY24.

Investing cash flow was a negative ₹171.49 crore, compared with a negative ₹242.39 crore in FY24, while financing cash flow was a negative ₹237.45 crore, compared with positive ₹23.71 crore. Capital expenditure was ₹180.95 crore in FY25, compared with ₹252.18 crore in FY24.

How has Radico Khaitan done over the last 8 quarters?

Revenue reached ₹4,485.43 crore in Q4 FY25, the highest of the eight quarters shown, after falling to ₹3,715.05 crore in Q2 FY24. Net profit peaked at ₹95.49 crore in Q3 FY25 before easing to ₹92.07 crore in Q4 FY25, while Q4 FY24 marked the lowest profit at ₹53.91 crore.

EBITDA margin bottomed at 3.0% in Q1 FY24, peaked at 4.2% in Q2 FY25 and eased to 4.0% in Q4 FY25. Revenue and profit rose year on year in each of the last eight quarters. The current direction shows revenue continuing higher, while profit and margin were lower than in Q3 FY25.

What did Radico Khaitan's management say?

Management guided to 15%+ Prestige & Above volume growth in FY26 and beyond and 12–13% regular-category volume growth in FY26. It expects an approximately 100 basis-point EBITDA margin improvement in FY26, with continuous expansion over three years, while ad-spend is to remain within 7–8% of sales.

Management expects the luxury and semi-luxury portfolio to surpass INR 500 crores in FY26, compared with INR 340 crores in FY25, and said two luxury brands are planned for launch in Q1 FY26. The company expects FY26 net debt to decline by 35–40%, with a target of being debt-free by FY27, and FY26 bulk scotch imports to exceed INR 250 crores at landed cost, including duties.

The CFO said Andhra Pradesh market share increased from 10% in the first half to 23% in Q4 FY25, while UP Prestige & Above share rose from 26% to 29% with around 40% more outlets. Management identified possible state excise-duty increases, the Bihar prohibition and continued stabilisation in Andhra Pradesh as risks.

The MD said, “FY25 has been the best year in our history on all key-financial metrics, with highest ever turnover of INR 4,851 crores, EBITDA of INR 668 crores and PAT of INR 341 crores. FY25 was truly a year of transformation for Radico Khaitan.”

How did Radico Khaitan shares react?

The results were released after market hours. From the price when the filing appeared, RADICO was down 1.1% after 5 minutes, down 1.1% after 15 minutes and down 2.3% after 30 minutes. The stock closed the reaction day down 1.6% from its pre-results close.

By the next day's close, the stock was up 0.2% from its pre-results close, and by the fifth day's close it was up 2.2%. The industry median moved down 2.2% on the reaction day, down 1.9% by the next close and down 3.6% by the fifth close; RADICO's relative moves were 0.6 percentage points, 2.2 percentage points and 5.8 percentage points.

Earlier reaction-day moves were 1.4% on 29 January 2025, negative 0.7% on 24 October 2024, 0.8% on 7 August 2024 and 0.2% on 14 May 2024. The Nifty Midcap 150 fell 2.5% on the reaction day, fell 1.1% by the next close and fell 0.7% by the fifth close.

How did other Breweries & Distilleries companies do?

Nineteen other Breweries & Distilleries companies were compared for revenue growth, with a median revenue growth of 1.1%. Of the peers compared, 16 grew more slowly than Radico Khaitan, while 3 grew faster than Radico Khaitan.

Nine of the 22 peers reported higher profit.