Radico Khaitan targets 20% volume growth in premium spirits in FY27, with 120bps margin expansion driven by vodka and luxury portfolio push. The company sees rising white spirits demand.
Radico Khaitan said it expects its premium spirits segment to grow 20% by volume in the current fiscal year, with a 120-basis-point margin expansion. The company is betting on rising demand for white spirits, especially vodka, and plans to push deeper into the luxury category.
The guidance follows a strong FY26, when sales in the premium segment picked up. The company's strategy centers on innovation and expanding its Indian brands overseas. Radico Khaitan's portfolio includes Magic Moments vodka, Rampur single malt whisky, and other premium labels.
The margin improvement, the company said, will come from a richer product mix and better pricing. As consumers trade up from mass-market spirits to premium offerings, the per-unit profitability rises. The 120bps target implies operating margins could move from roughly 15% to above 16%, based on recent trends.
The push into luxury is a key part of the plan. Radico Khaitan has been building its Rampur whisky brand, which competes with imported single malts. The company also sees opportunity in the ready-to-drink and cocktail segments.
On the international front, Radico Khaitan is targeting markets where Indian whisky and vodka are gaining traction. Exports have been a growth driver, and the company expects that to continue.
The Indian spirits market is one of the largest in the world, with volume growth of 5-7% annually. The premium segment is growing faster, at 10-15%, as incomes rise and consumer tastes evolve. Radico Khaitan's focus on premium positions it to capture that shift.
Vodka, in particular, has been the fastest-growing white spirit in India. Magic Moments, the company's flagship vodka brand, holds a leading share in the segment. The company is also investing in capacity expansion to meet expected demand.
Competition in the premium space is intensifying. Diageo's United Spirits and Pernod Ricard are also pushing premium portfolios. Radico Khaitan's niche in white spirits and Indian single malt gives it a differentiated position.
New product launches in the luxury category are planned for the coming months, the company said. The premium segment is expected to drive the majority of Radico Khaitan's growth in FY27.
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