Radico Khaitan gains 2% on healthy Q2 results, stock up 28% so far this year

So far this year, the stock of this alcohol maker soared 28 percent as against 6 percent rise in the benchmark Sensex

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26 Aug, 2025 12:21

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Shares of Radico Khaitan gained 2 percent to trade at Rs 1,328 on November 7 after the company put up a strong September-quarter (Q2FY24) performance. The S&P BSE Sensex was down 170 points or 0.2 percent to 64,788 levels, as of 9:20am.

So far this year, the stock of the alcohol maker soared 28 percent as against a 6 percent rise in the benchmark Sensex. The Radico Khaitan shares had hit a 52-week high of Rs 1,478 on August 1.

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Radico Khaitan’s consolidated net profit grew 19 percent on-year to Rs 64.8 crore in Q2FY24, led by strong demand for premium brands, while revenue from operations surged 23 percent on-year to Rs 3,715 crore.

Volume-wise, prestige and above category grew 22 percent year-on-year (YoY) in the September quarter, whereas total Indian-made foreign liquor (IMFL) decreased 3.1 percent YoY.

The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) for the quarter, too, was up 34 percent on-year to Rs 120 crore. Ebitda margin, on the other hand, expanded by 127 basis points (bps) on-year to 13 percent in Q2FY24 due to price hikes and continued focus on premiumisation in the IMFL business.

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Going ahead, the management expects demand momentum to further improve with the upcoming festive season.

“The recent commissioning of the greenfield grain distillery at Sitapur is a significant milestone development in the history of Radico Khaitan and augurs well for our future growth trajectory. We are committed to our long-term strategy of delivering a sustainable premium volume growth,” said Lalit Khaitan, chairman and managing director.

In an earlier note, analysts at HDFC Securities shared a ‘reduce’ call on Radico Khaitan, sharing a target price of Rs 1,000 each.

“With high inflation having dented the net income level of bottom of-the-pyramid consumption, we continue to expect a gradual recovery in demand vs the expectation of a quick rebound, more so in rural markets. Moreover, we expect divergence between volume and value growth to normalise in FY24 with volume growth back at its historical average of mid-single digit,” the brokerage firm said.

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