Mirae Asset Sharekhan's research report on Radico Khaitan
Radico Khaitan Limited’s (RKL’s) Q1FY26 performance was strong, beating estimates on all fronts, with a volume-led 33% y-o-y revenue growth and OPM rising 248 bps y-o-y to 15.4%, that drove up adjusted PAT by 82% y-o-y. Management eyes an over 20% y-o-y volume growth in FY26, with robust contribution from the P&A segment. OPM expansion guidance has been raised to 125-150 bps in FY26 led by an improved product mix, backward integration and stable/declining raw material prices. Total debt reduced by ~Rs. 140 crore in Q1FY26 to Rs. 492 crore at Q1FY26-end. RKL targets to become debt-free by FY27.
Outlook
Stock trades at 68x/51x its FY26E/FY27E earnings, respectively. We retain a Buy with a revised PT of Rs. 3,428.
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