Thank you. Good evening, everyone.

We would like to thank Radico Khaitan's management for providing DAM Capital with the opportunity to host Q4 FY26 earnings call. Today we have with us Mr.

Abhishek Khaitan, Managing Director; Mr. Dilip Banthiya, CFO; Mr.

Sanjeev Banga, President International Business; and Mr. Sudhir Upadhyay, Chief Sales Officer.

Now I would like to hand over the call to Mr. Abhishek Khaitan for his opening remarks.

Thank you, and over to you, sir.

Good afternoon, ladies and gentlemen, and thank you for joining us on Radico Khaitan's Q4 FY26 earnings conference call. FY26 has been an important year for Radico Khaitan and, in many ways, an inflection point in our journey.

The business delivered a strong performance supported by disciplined execution, a richer portfolio mix, and a continued focus on value-led growth. During the year, we crossed two key milestones with net revenue exceeding ₹6,000 crores and EBITDA crossing ₹1,000 crores.

These achievements reflect the sustainability of our business model, the strength of our brands, the investments we have made over the years, and the growing scale of our premium and luxury portfolio. Our Prestige & Above segment continued to lead growth, while our luxury portfolio delivered sales value of ₹475 crores in line with our guidance.

We expect to sustain this growth momentum and deliver 25% growth in FY27 in this portfolio. Our recently launched luxury brands Rampur 1943 Virasat Indian Single Malt and The Spirit of Kashmyr luxury vodka are gaining strong traction with consumers and the trade.

In February this year, globally renowned whisky expert and author of the Whisky Bible, Jim Murray, was in India for an exclusive tasting event of Virasat. He also visited Rampur for the opening of our latest stillhouse.

His earlier visit to Rampur was nearly three decades ago when our first malt plant was just a couple of years old. Our current single malt portfolio not only showcases the craftsmanship behind various expressions, but also reflects the growing international interest in Indian single malts.

Alongside this, our broader premium portfolio continues to scale steadily across key markets, supported by sharper execution and increasing consumer pull. Royal Ranthambore whisky delivered an outstanding performance, growing over 50% during the year, driven by strong demand across both civil and CSD channels.

Magic Moments vodka continued its strong trajectory with 21% volume growth during the year to reach 8.6 million cases and around ₹1,500 crores in sales value, further strengthening its leadership in the vodka category. During Q4, Magic Moments registered 28% year-on-year growth.

New flavor innovations, including Flavors of India category, are contributing to this robust momentum. Going forward, we'll continue to add more flavors as we lead disruptive growth in the category.

After Dark whisky continued to deliver strong performance, recording over 60% growth and crossing 3.1 million cases during the year. We also continued to deepen consumer engagement through focused marketing, on-trade activations, and brand advocacy initiatives.

The Royal Ranthambore limited-edition pack, celebrating India's six legendary tigers, brought together premium storytelling with a strong message around wildlife conservation. Our experiential campaigns and focused digital engagement further helped us connect with younger consumers in a more authentic manner.

As we have discussed earlier, the on-trade channel continues to be a strategic priority for us. Over the last two years, we have made significant progress in building a stronger foundation, and the results have been in the line with our expectations.

In FY27, we will further scale our on-trade agenda across advocacy, distribution expansion, key account partnerships, and airports. These initiatives will enhance visibility, trials, consumer experience, and premium brand activations, strengthening the reach and salience of our luxury and premium portfolios.

From a financial performance perspective, the year has been encouraging. A better portfolio mix, relatively benign input costs, and the benefit of scale have helped us to improve margins and returns.

We will, however, continue to monitor the global environment closely, especially developments in West Asia, given the possible implications for supply chains and input costs. Looking ahead, the consumer environment remains supportive, and we remain confident about Radico Khaitan's long-term growth opportunity.

Our focus will remain on building our premium and luxury portfolio, investing behind the innovation and brand equity. During FY27, we expect to grow our Prestige & Above portfolio volume by 20% and expect our EBITDA margin to expand by 125 basis points for the full year.

With that, I would now like to hand over the call to our CFO, Dilip Banthiya, for a detailed review of our financial and operational performance. Thank you.

Over to you, Dilip.

Thank you, Abhishek. Thank you, everyone, for joining us on this call today.

Financial year '26 was milestone year for Radico Khaitan with robust operating performance translating into higher profitability, improved return ratio, and enhanced free cash flow generation. The result demonstrate the power of our premiumization strategy, growing scale advantage, input cost stability, and disciplined financial management.

During quarter four of financial year '26, we delivered a strong all-round performance with total IMFL volume of 9.52 million cases, reflecting a 4% increase year-on-year basis. Prestige & Above category continued its strong upward trajectory, recording 28% volume growth.

The performance was supported by strong brand momentum and premiumization-led product mix. Regular volume degrowth was due to a higher base in quarter four of FY25 after the change in the route to the market in the state of Andhra Pradesh and the impact of policy changes in Maharashtra and Karnataka.

On the profitability front, gross margin during the quarter was 48%, representing an expansion of 450 basis points on year-on-year basis and 150 basis points sequentially. The improvement was led by better product mix, softer raw material prices, and ongoing premiumization.

We continue to monitor evolving situation in West Asia and confident of our margin expansion trajectory over the mid to long term. EBITDA margin during the quarter stood at 19%, expanding 565 basis points year-on-year, highest-ever EBITDA margin, reflecting the strength of our premiumization strategy, operating leverage, and continued cost discipline.

This margin performance is an important outcome of investment we've made over the years in building our premium and luxury portfolio. The improvement in profitability has also translated into stronger return ratios.

Higher operating profit and better asset utilization have contributed to improved return on equity and return on capital employed. As the Prestige & Above luxury portfolio continue to scale, we expect further improvement in the overall capital efficiency of the business.

Turning to the balance sheet, net debt reduced by ₹329 crores during the year, driven by improved profitability and cash flow generation. Our balance sheet remains strong, and we are well on track to become debt-free in financial year '27.

Capital allocation continues to be prudent and selective, with ongoing capex largely directed toward maintenance, efficiency improvement, and essential capacity optimization. In line with our commitment to the shareholder value, the board has articulated a strong dividend policy with a minimum payout of 20% of profit after tax.

This reflects our confidence in the cash flow generation of the business and maintaining adequate flexibility to invest behind future growth opportunities. Looking ahead, while we remain mindful of our external volatility, the cost environment, operating leverage benefit, and financial discipline to provide comfort on margin sustainability and cash flow generation.

Our focus will remain on driving profitable growth, strengthening the balance sheet, improving return ratio, and enhancing shareholder value. With that, we now open the line for question-answer.

Hi. Good evening, and thanks for the opportunity.

Two questions. Firstly, can you throw some light on sort of new product launch plans for fiscal '27, particularly in the Prestige & Above and luxury space?

Second, sort of your 125 basis point EBITDA margin expansion is fairly robust given the commodity environment. One, how do you plan to mitigate the higher commodity cost?

Is this margin expansion over full year '26 or 4Q '26? That's it for me.

To answer your first question about the new launches, if you see, in the last year itself, we launched three, four brands in the luxury as well as the P&A category. We want to consolidate that.

That will be our first objective. Take it nationally, like our Virasat Indian Single Malt, The Spirit of Kashmyr.

Right now, it is in 10 states. We want to take it to 20 states.

That will be our prime focus. Plus, we've launched new flavors of Magic, like jamun, mango, thandai, which we are going to again take it nationally.

In the coming year, what we feel we are going to launch is some more flavors in the Magic family. Those will be also in the Flavors of India category.

Plus, at the end of the year, we will be coming out with a tequila in our spirits. These are our launch plans.

As far as the margin goes— On the margin front, Aditya, actually, as you have noticed that in last quarter, we have improved our gross margin by 450 basis points and EBITDA margin by 565 basis points. We are quite confident to add 120 basis points to 125 basis points margin in the coming year '27.

This is on annualized basis. We have got the price increases in some of the states, which amount to be around 60 basis points.

At the same time, product premiumization will yield us more than 200 basis points. We will be more than mitigating the impact of the cost push.

Thereafter, also we are confident to deliver 120 to 125 basis points margin expansion.

That is very clear. Thanks very much.

Just a one follow-up on the margin. Will there also be some unlock given that you had a large number of new launches last year, and so that I'm assuming a lot of marketing spend behind that.

Could there be some unlock in marketing spend as well given that the number of new launches is lower?

We have been actually consistent in our policy on spend in the marketing. As we have always been guided that with 6% to 8% is the bracket where we spend the marketing expenses depending on the new launch and existing flagship brands.

We'll balance out in that. As our top line has grown by 25% this year also, the increase in top line will further increase the quantum of the marketing expense.

It'll be within that.

Perfect. That's very clear.

Thanks so much.

Yeah. Hi team.

Congrats on a good set of numbers. Three questions from my side.

First is on Karnataka state. Now with the new policy announced by the state, the pricing difference between regular and premium has come down.

How do you plan to capture that, given that the gap has come down a bit, driving the premiumization and updation agenda that you have? Second question is on West Bengal.

Now there is a change in government that has happened. Do you think there could be a meaningful change in the way the market operates?

If you can provide a framework as of now how the market is operating as on date? Sir, the third question is on Bihar state.

We have been hearing murmurs that prohibition could be uplifted. If you can provide any update that you are aware about.

Thank you.

Hi. This is Sudhir Upadhyay.

Regarding Karnataka, which you had asked. Yes, we had seen last time when Karnataka has rationalized the pricing for the premium brands, there was a significant increase which has come on the premium brands.

Since we have the portfolio of the premium brands, which is like Rampur, Jaisalmer, Royal Ranthambore, etc., it is very well-established there. We had also gained the advantage on account of this price rationalization, which has been done almost a year and a half back.

Now this time also, we are anticipating the government is working on the similar line. Although the official announcement is not there, in the case if it is going there, we will certainly be benefited with that.

Your second point is regarding the West Bengal. West Bengal, it's too early to preempt anything because there is a change which is recently done.

We will wait and watch on what is happening on the West Bengal, and on basis of that, that we will to put the strategy there. We had a strong vodka base there, we will get the benefit of that.

Sir, is it a open market or it's a regulated state as of now, West Bengal?

No, it's a open market. It's a open market right now.

They have a private retail structure there. If there are any changes which is going to happen, then we will see accordingly.

Okay.

Third point was regarding the Bihar. Bihar, yes, we will wait and watch.

Before the prohibition, we used to have a large consumer base in Bihar, and it is a significantly populated state. We will wait and watch.

In the case if anything happens in Bihar, we will get the benefit of it.

Got it. Got it, sir.

Wishing you all the best for future quarters. Thank you.

Hi. Good evening.

I just had three questions. One was on the initial comments, Abhishek, on the unlock because of the distribution expansion on the luxury portfolio.

My understanding was that a lot of this work you had already done. Just wanted to get your sense on how much more can this benefit, whether in terms of being on more outlets that you can still reach on the on-trade or maybe more product in those same outlets?

What's the potential still of that? The second question was on exports.

I'm sure you would have taken some impact in the last six months because of tariffs, etc. Just wanted to kind of get your thought on how fast that segment can grow going forward and how much impact it could have had in '26.

The third question was on the margin bit. The 100 100 to 125 basis points, does it also take into account the fact that you already including the fact that there will be an India-UK FTA benefit for you, possibly in the second half of this fiscal year?

Those are my three questions. Thank you.

To answer your first question regarding the expansion to the various states and on-trade, I think we see that, especially with Virasat, Kashmyr, all this, there is a huge scope of expanding it. On-trade also, what we had told about two years back, with our luxury portfolio has become a key focus area for Radico.

We are adding outlets by the day. This year, brand advocacy is one of our most important initiatives.

We are planning to have about close to 2,000 advocacy sessions in the on-trade. I think all this put together, that is why we are confident that our luxury portfolio should grow by 25% in terms of value from ₹475 crores.

As far as export goes, I think Sanjeev will answer that.

Harit. In terms of the US tariffs, at 10%, it's not make or break, especially for the luxury portfolio, where the difference on the retail end would be about $5 to $6 a bottle and all.

That's not substantial. However, the US market, as it is, as you would have seen from all the other players as well, whether in the alcobev space or anything else, is on a slightly softer note.

We are all hopeful it'll bounce back pretty soon and should not have any major impact on our luxury portfolio.

Regarding the margin expansion, as you said that UK by India by FTA benefit, 125 basis point expansion is inclusive of all. At the same time, there can be some pluses and some minuses.

We are conservative on our this thing that something goes on cost push side and all that. 125 basis point should be delivered given the current scenario.

Great. That's it for me.

I'll come back for more. Thank you very much.

Yeah. Thanks for the opportunity, and congratulations on a great set of numbers.

Just a follow-up on the previous question to just clarify, excluding UK FTA and given the current environment, Radico is looking at a 100 to 125 basis points improvement in margins. Is that right?

Was it?

Abhijeet, actually, as we said, with the current scenario, I can't predict if it goes much earlier than what it is today. If LPG and other thing goes out of stock and some of the units of glass bottle and things disrupt with the production and all that.

Otherwise, we are pretty confident because we see this should not happen and the geopolitical situation also should be taken care of next 15, 30 days and all that. We have a long-standing relationship with our supply chain.

We are pretty confident about continuity of the business. Given these circumstances and all, we confident to deliver that until and unless there is something very, very drastically negative.

Okay.

Sir, what I understand is your Sitapur and Rampur distillery, 50% of it is biomass dependent and less dependent on LPG. On an overall basis, assuming things are getting better, but assuming that there are issues with LPG and LPG supplies.

That is one question. What happens in that scenario?

Second question is that glass prices, are you seeing any inflation right now? After your negotiations, what is your dependence on glass?

Because major part of it would be glass. Then there is a lot of alcobev spirit companies have switched to hipsters, and hence, a dependence on PET bottles.

What could be the overall impact in the current scenario? If it increases from the current level, just a view on that.

Abhijeet, actually, your first point regarding my power and fuel balancing and all that. It is largely, 90% of our power and fuel in both the plants, Sitapur and Rampur, is biofuel-driven.

I'm not at all dependent on the LPG. It takes care of itself, and the biofuel is locally available.

There are boilers, etc., and turbines, which generate the power. In both the plants, we are self-sufficient on our captive basis.

Your second question regarding the glass, as I said earlier also that we have a long-standing relationship with the glass manufacturers. We don't foresee any impact on our glass supply.

At the same time, there has been some inflation in the glass prices in the last month. Around 15% of the glass price have got increased.

We have factored into our costing that. After that also, we're talking about the margin expansion.

On your third point, as the trend is going around, and Abhishek can speak much more on that, on the hipster pocket pack, it is a trendier pack and is gaining momentum. That is also reducing dependency on glass.

That is another feature which is coming in the demand point of view and consumer preference point of view. Right.

We are promoting that also.

Understood, sir. On the top-line front, when I look at your growth and the sustainability of that, if we have to look at a 15% to 16% at least revenue growth for the next two years and about a 11% to 12% volume growth, then a significant part of that would come from Magic Moments vodka, After Dark, 8 PM Black.

I don't know how that is moving on. There is a part of it which Old Admiral, where you got benefited in Andhra.

If you have to look for this next two years, how would the scenario be in terms of your brand growth? I don't want any figures, but which would be the brand that would drive the larger growth?

One is your ₹475 crore of luxury portfolio, which will grow at about 20% to 25%, that we understand very well, and that is doing very well. What about the other portfolio?

How have you seen the MML panning out? Has it settled down?

Because that has impacted a part of Radico's volume as well. How do you see that panning out going ahead?

That's fine. Those are my Yeah.

If you see, last year, our growth of P&A has been 28%. Vodka, definitely what we are seeing is a shift towards the white spirits.

If you see total market share of the white spirit in India is about 4.5%, whereas globally, it is 28% to 29%. We have still a long way to get that conversion.

I think what we are seeing with the innovations of the flavor, etc., a lot of consumer are now shifting to the white spirit. I think, in the times to come or in the current year, which we are already seeing, Magic will be a big driver of our growth, number one.

Number two, After Dark also has grown very well. It has grown by 62%, and we feel that it is gaining traction.

That growth will come from there also. We had done a repackaging or a retransformation of 8 PM Black in the second half of last year, and this quarter, we grew by about close to 50%.

I think growth is coming from all these three angles. We are very confident that our P&A category volume growth for the next year will be 20%.

Understood. Thanks.

That's it for myself. Thank you.

Hi, sir. Congrats on a great set of numbers.

Firstly, while you did allude to vodka segment and P&A segment seeing a strong growth, how should one look at the realization growth year, because obviously, the luxury portfolio is also growing pretty fast? Do you see this realization growth of low single digits that we saw in FY26 for P&A, can that also increase?

Secondly, how do you look at the regular segment growth on a steady-state basis?

On the realization front, as our P&A and especially luxury is growing faster than even P&A, we expect that realization and volume and value delta will be in the range of 300 to 400 basis points as an aggregate basis. As far as your second question, regular segment, in my opening remark, I said is because of some policy and high base.

This time, it has degrown in Q4. However, in the full year, we've grown by 30% on the regular side also.

This year, we expect in the range of 3% to 5% growth in regular category.

Okay. That's a volume growth you're saying, right?

3% to 5%.

Volume. Yes.

Got it. Fine.

Thank you. That's all from my side.

Hi, sir. Good evening.

This is Rahul Agarwal from InCred Asset. Sir, question is related to earlier questions asked on growth.

20% P&A volume growth implies about 3.5 million cases roughly additional. Similar question what the earlier analyst asked on which category and brands will contribute.

You mentioned Magic Moments, After Dark, 8 PM Black repackaging. Are these three category or brand going to be similar to contribute this 3.5 million cases?

Is there enough market for that? That's first question.

Secondly, in terms of capacity, related question to the growth outlook. Support this 20% growth, you said your capex is largely maintenance and optimization.

How are we placed in terms of in-house capacity across material, packaging, bottling, printing, stuff like that? If you could just highlight do we have enough to support this, give more color on this 20% growth, please.

That's the first question.

The first question is regarding the 20% category 20% growth on the P&A side. Yes, you are right that these are the brands which will take it, like Magic family is going more than 22% in as a whole, and last quarter 28%.

New flavors are adding a lot of strength to the Magic growth. Then After Dark, which is in large segment, it is an industry of 75 million cases plus, so that is also adding.

Royal Ranthambore, the another brand, which is also growing by more than 50%. As a bouquet, as some of the brands are still in a very, very nascent stage and all that, we are confident to deliver 20% growth as a P&A category.

Second question is regarding the capacity. Actually, around 60%, 65% of our capacity is outsourced by lease arrangements, etc., across India, and 30% to 35% is being handled by us in our own plants.

We believe in outsourcing that with a quality tie-up arrangements, etc. We are confident.

The capex, as I said, will be in the range of ₹150 to ₹175 crores, which will be largely on my internal capacity expansion and optimization, etc. We will be doing that mix of that, but the capacity is not a constraint for the growth.

Got it, sir. This entire 60%, 65% outsourced arrangements from a supply chain perspective, they could face some hiccups in terms of whatever they are sourcing components and materials from.

Of course, gas is an issue, and it could have some supply hiccups. In terms of our discussions with them, that this outlook in terms of 20% growth also accounts for all the supplies on time to the vendors as well, right?

As far as the tie-up unit goes, all the material is procured by Radico. They are only converting it.

All the raw material is our this thing. We don't foresee any problem in that.

Got it, Dilip. Just lastly on employee cost, just as a directional, when I look at over the last four, five years, this number actually is grown much lower than what top-line growth Radico has seen overall from a system level.

Of course, we've been investing into people, and we've been training people inside the company itself. Going forward, do you still think this 15% cost CAGR for staff cost is enough to sustain this 20%, 25% kind of P&A outlook over the next two, three years?

Yeah. Our internal team is very strong, and second is the operating leverage is coming into play as the turnover is increasing, you do not require the same number of manpower.

The operating leverage is kicking in, which is helping our margins also.

It should continue the similar way as what we have seen so far over the last four, five years, right? Yes.

Yes.

Yes.

Okay. Perfect.

Thank you so much, and best wishes for the next year.

Hello. Am I audible?

Congratulations, and thanks for the opportunity. My first question is, given rising health awareness, how are you adopting your portfolio like premium, ready-to-drink, low-alcohol to capture Gen Z consumers and also diversifying the portfolio, which will reduce the dependence on Indian excise policy?

That is my first question. Hello?

As far as the Gen Z goes, the white spirits is what the Gen Zs prefer. That is where our innovation of the different flavors of vodka is coming into play.

That is helping us to get the Gen Z into the white spirits, what I told earlier. We see this white spirits expanding in lot of states now.

I think that is the trend we are seeing with the Gen Zs. As far as the low-alcoholic or RTD goes, as of now, we don't have any major plans to get into it.

Yeah.

Because these days, what I observe personally is they are very careful about what they are drinking, and they don't drink too much also. They think and then they act.

That was my concern, how are we thinking to modify our portfolio into non-alcoholic or low-alcoholic beverages so that we can benefit in future? That was my concern.

And— Absolutely right. The Gen Z, what they're doing is everyone is health-conscious, responsible drinking, etc.

They drink less, but they want to drink the finest. That is why, if you see, the P&A category is growing across India, and that is the main trend.

Okay. No future plans of getting into another low-alcoholic drink, like many of your competitors are also entering into those segments.

You don't have any plan to enter those segments, right, in future? Hello?

We don't have any plans as of now.

Okay. Another question is like Rampur Indian Single Malt and Jaisalmer Craft Gin and Magic Moments, like these are getting a lot of traction in global market, like internationally also.

Like knowing that our share like international contribution to top line is around 8% to 9% only. Going forward, are we looking to penetrate even in a better way the global market scenario?

How are we strategizing that forward? Yeah.

The international market is a very important strategic market for us. It's not only the international market, but even the global travel retail, that's very important.

We are currently in 50-plus airports, and our target is to cross 100 airports in quick time. In terms of the share of international business in the overall, it's thanks to our domestic business, which is growing at a very, very fast pace.

The share keeps coming down, we're not complaining about it.

All right. That was my question.

Thank you, and I really liked it. This is the first time I'm attending an investor call, and you're really doing a great job, and all the best for the future.

Thank you.

Hi, sir. Thank you for the opportunity.

In Q3, you flagged the Maharashtra industry volume down by around 20% post MML policy, and said you would launch MML through your R&B joint venture in January. How has the R&B joint venture performed since launch, and what is your current market share in Maharashtra?

Do you see the market recovering towards the original 2.4 million cases per month in Maharashtra?

See, as far as Maharashtra is considered, we have a saliency of around 3% to 4% of our overall business. Yes, after the MML introduction, the IMFL industry has gone down.

It has gone down by 20%, 25%. Gradually, MML is stabilizing.

We hope so that IMFL, over a period of time, should come back in the normal position. Since we are getting vodka category and above there, premium and above is stable for us.

Sir. Thank you, and all the best for the future.

Thanks for the opportunity, sir. I had a couple of questions, but they are more or less answered.

Thank you so much.

Yeah. Hi.

Good afternoon, sir. Sir, can you spend some time on Karnataka policy?

How do we read that? What kind of price decline or hike we can expect across range of products?

See, as we have said earlier, that Karnataka is on the progressive march. As far as excise is considered, they have taken this step last year also where they have rationalized the price of premium brands.

Our brand like Rampur Single Malt, Jaisalmer Craft Gin, Royal Ranthambore, Sangam, etc., has been benefited in the larger way, and other brands of the industry has also been benefited. It's a cosmo market at the end of the day, it has a lot of consumption.

Now in the second step also, government was also thinking on the similar line. At the same time, since the policy is yet not out, we cannot say that.

As far as market and other things are considered, we can say that they are thinking on that line, and they have seen a success of premium and above category increase. The overall saliency of the premium and above category has been increased in the last decision of that.

Definitely, they will look forward for rationalizing the brands further.

Got it. Sir, what would be the margin for non-IMFL business for the full financial year?

How do we see the growth as well as margin profile of non-IMFL business going ahead?

The margin in the IMFL business is around 20% plus, 20%, 21% for full year, and non-IMFL, it is in the range of 9%.

How do we expect growth in non-IMFL business?

Non-IMFL business is growing at 7% to 8% this thing, which is a natural growth of the industry. As far as the bulk spirit is concerned, that will, in due course of time, start being consumed by our captively.

That will get reduced. Proportion as of now also, the IMFL is constituting around 70% to 75% of the overall saliency of the top line.

We'll see a gradual shift to IMFL from non-IMFL.

Okay. Sir, last question is on capex.

That now that we will become debt-free in FY27, and already you have announced that minimum 20% would be the dividend payout policy, how do we see the incremental capital allocation going ahead? Would we do further capex, or would we be looking for inorganic growth or acquisition?

How do we see on capital allocation?

As far as the first step we have taken on this is to have a minimum payout of 20%. In due course of time, with the time passes and the availability of cash generation and free cash flow available, it will be looked into.

However, if there is an opportunity which gives us more than 25% 20% to 25% ROCE, we'll be definitely looking at that. The point is we believe in a organic growth rather than an inorganic growth.

As far as the acquisition or anything is concerned, that is at this point of time is being ruled out. Okay.

Sorry, but

I don't know whether this question was asked or not. In our assumption of 125 bps of margin expansion, do we take any benefit from UK-India FTA trade?

It's inclusive of all because there will be some pluses and some minuses. We can't predict what kind of global and geopolitical situation arise.

Taking into account all these things, I think we're confident to deliver 125 basis point improvement.

Okay. That includes UK-India FTA trade benefit as well.

Thank you, sir. Yeah.

Hello, sir. Thank you for the opportunity, and congratulations on a really great set of numbers.

First question I had is, what kind of pricing power do we have across markets, at least our top markets? If you can help me with what our top markets are in terms of saliency.

When can we actually do the revisions? Are there any legal restrictions on or not on pricing divisions?

Secondly, I really appreciate the goal of reaching the ₹1,000 crore mark, and you are saying 25% CAGR to reach it in three years. What kind of brands are our high-conviction brands, and what kind of geographies are we betting on?

Your first question is regarding the pricing power. As you are aware that state excise policies, generally, when the industry represent about the reason for seeking the price increases and all that, in the scenario, the state government consider now is positively because their concern is also the revenue and all that.

As we said that seven to eight states has already given. This is a continuous process, which the industry associations keep doing with the state governments.

Some of the talks are still on and all that because of the cost push being faced by the industry. I can't say that which are the states, but yes, it is an ongoing process.

Regarding your second question regarding—

Sir, part to luxury markets. What are we sort of betting on?

What are our top brands that you are focusing on for turning ₹475 into ₹1,000 crores? I'm sure we will show luxury as a separate line item as well when we reach there.

What are we betting on in terms of brands and geographies?

Our guidance, first of all, is for the next year, 25%, not for three years. Next year, our guidance is 25%.

After that, we'll see. We're very confident on our luxury portfolio because we are seeing growth coming from everywhere.

Okay. No particular product or category that we are betting on?

No. Like Rampur Indian Single Malt, the expressions of Rampur, the Virasat Indian Single Malt, The Spirit of Kashmyr, Jaisalmer, Royal Ranthambore, all these brands.

Okay. Got it, sir.

Sir, if you can just list out what are our top three states and what saliency we have in those states, that would be very helpful.

The top three states are Uttar Pradesh, Andhra Pradesh, and Rajasthan. We are actually pretty well spread out on our saliency, north, south.

Everywhere, I think Radico is growing, but these are the three big states.

Okay. Thank you, sir, and all the best for the future.

Hello, sir. One, I would like to know, given that MML is right now established in Maharashtra and stabilizing, and you have a JV there which is allowing you to participate within that industry, and you have already lined up some pretty eye-catching products, and given that the competitors within said segment would not always be backed by large companies such as yourself, given that, do you expect the JV in Maharashtra to take a substantial portion of this increasing market?

We are aiming about 10% to 15% of the MML category, and we just launched it a couple of months back, and the response to the brand is quite encouraging.

Yes, sir. That is definitely there.

I've seen the products within the range, and of course, there is no debate that your products stand out across the line in that category. Given that this distribution strength and backing of the main company, the growth, of course, there is going to be substantially high if this entity stabilizes.

Now here, given that the growth is going to be coming from this segment and that's the market you are aiming at, is there more investments going to be made in the JV?

No. The JV is self-sufficient.

Even for this market share grab that you're looking at.

Absolutely, because it's more of creating the brand and the distribution leverage. The JV itself is throwing a lot of cash, I think there's no requirement of any investment.

Understood, sir. Understood.

Sir, next question, on the UP side, UP IMFL, we are always in top two, sometimes number one, number two. Financial year '26, where have we ended?

Have we ended it at number one position, number two position officially?

We are number one.

Currently we have moved to number one. Okay.

Within the space of UP IMFL, the UPML segment, the growth there, and how much market are we aiming to capture there? Is the segment itself as exciting as the state policy makes it to be, and are the consumers also as excited about this segment?

I think

our market share there is about close to 26%, 25%, 26%. We are aiming at the normal growth what the market will be having.

We're not looking at a abnormal growth there.

Understood, sir. In particular on the UPML segment?

The excitement is there as the state makes it to be?

Consolidated, we're talking about 24%, 25% market share in UPML and UPCL. Nitin, our objectives and our focus area, core business is on IMFL side, which continues to grow in very, very strong double digit.

20% is our guidance, and we continue to focus on that across markets.

Understood, sir. Thank you.

The current environment reinforces the strength and resilience of Radico Khaitan's business model. Strong operating performance, margin expansion, and improved return ratio and healthy cash flow generation respect the quality of our growth and impact of the disciplined execution.

With a differentiated premium-led portfolio, a robust balance sheet, and continued focus on financial discipline, we are well positioned to navigate near-term uncertainties and sustain our profitable growth trajectory. We remain confident in road ahead and committed to creating long-term value for our stakeholders.

Thanks for joining us today, and look forward to connecting with you next quarter. Thank you.