Shares of Radico Khaitan Ltd. surged by 5%, reaching a day’s high of Rs 2,524 on 25th October, after the company announced it expects to deliver double-digit premium volume growth in the financial year 2025.

Radico Khaitan reported a 2.5% decrease in total Indian Made Foreign Liquor (IMFL) volumes, reaching 6.78 million cases for the September quarter.

Radico Khaitan saw strong growth in its Prestige & Above (P&A) segment, with volumes rising by 12.6% to 3.2 million cases. The firm’s P&A net sales grew by 18% to Rs 578 crore, and P&A’s contribution to overall sales increased to 75.7%, up from 70%.

Radico Khaitan’s profit after tax rose 24.4% year-over-year to Rs 80.66 crore in Q2, up from Rs 64.83 crore in the same quarter last year. The company’s gross margins slightly declined to 43.6% in Q2FY25 from 44.1% in Q2FY24, while EBITDA increased by 34.6% to Rs 163.18 crore, compared to Rs 121.2 crore in Q2FY24.

In its earnings statement, Radico Khaitan explained that food grain inflation impacted gross margins year-over-year, but premiumisation in the IMFL business helped improve gross margins by 258 basis points quarter-over-quarter.

For the quarter, EBITDA margins improved to 14.6% from 13.1% in the same quarter last year. The company’s finance costs surged by 50.9% to Rs 18.82 crore in Q2FY25, up from Rs 12.47 crore in Q2FY24.

Radico Khaitan’s total debt rose by 10.6% year-over-year to Rs 815.24 crore in Q2FY25, compared to Rs 737.08 crore in Q2FY24. The company attributed the increase in net debt to cyclical inventory buildup.

At 11:09 AM, the shares of Radico Khaitan were trading 4.14% higher at Rs 2,391.15 on NSE.

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