Hi everyone. It's a wonderful good evening to all of you.

Today, we have with us Mr. Abhishek Khaitan, Managing Director; Mr.

Dilip Banthiya, Chief Financial Officer; Mr. Sanjeev Banga, President of International Business; and Mr.

Sudhir Upadhyay, Chief Sales Officer, all representing Radico. 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 Q1 FY27 earnings conference call. We are pleased to report another strong quarter, carrying forward the momentum from FY2026.

During Q1 FY27, we reported highest-ever quarterly volume of 10 million cases, revenue of 1684 crores, and EBITDA of 348 crores. Our performance was driven by the continued success of our premiumization strategy, with our P&A portfolio delivering 36% volume growth during the quarter and significantly outpacing the industry.

Despite a dynamic global environment marked by geopolitical uncertainties and supply chain challenges, we expanded our operating margins through a richer product mix, disciplined cost management, and continued operational excellence. The quarter was also a strong demonstration of our ability to translate strategy into execution.

Alongside robust business performance, we expanded the distribution of our luxury portfolio, strengthened brand advocacy through consumer experiences, significantly enhanced our on-trade presence, and forged strategic partnerships that will support long-term brand equity. These initiatives reinforce our confidence that the investments we continue to make behind our brands are creating a stronger and more sustainable platform for future growth.

Turning to our brand portfolio, we believe India's vodka category has entered a multiyear structural growth phase, driven by changing consumer preferences, favorable demographics, premiumization, and evolving consumption occasions. India's vodka category has grown at over 20% CAGR between FY22 and FY26, significantly ahead of broader IMFL growth.

While vodka accounts for nearly 28% of the global spirits market, its share in the Indian IMFL industry has increased from 4.6% in Q1 FY26 to 6% in Q1 FY27. This highlights the accelerating pace of category development and the significant headroom that remains.

Magic Moments continues to lead the category with over 60% market share and even stronger position in its core price segment. The brand delivered a landmark performance during the quarter, with 3.25 million cases at a growth rate of 43% year-on-year.

In value terms, the growth was 51%, indicating a strong premiumization trend. The performance was driven by strong consumer acceptance and our flavor-led innovation strategy.

Flavored vodka industry today accounts for 75% of our volumes, up from 65% last year. Vodka also offers attractive unit economics, supported by lower production costs and significant premiumization potential, making it one of the most attractive long-term growth categories within the Indian alcobev industry.

Going forward, we will continue to focus on new flavor innovations to drive the industry and sustain strong growth in our portfolio. Across our broader premium portfolio, Royal Ranthambore, 8PM Premium Black, and After Dark Blue continue to build strong consumer traction, each supported by differentiated brand building initiatives.

The limited edition Royal Ranthambore pack has been well received, with its storytelling around India's six legendary tigers strengthening the brand's premium positioning while supporting wildlife conservation. 8PM Premium Black gained further momentum during the quarter, supported by its partnership with Sunrisers Hyderabad in the recent IPL season.

Improved brand visibility and strong consumer acceptance contributed to a healthy increase in market share in key markets. The recently introduced contemporary packaging for After Dark whisky is expected to further enhance the brand's premium appeal and support market share gains in the largest whisky segment of the industry.

Looking ahead, we expect our P&A portfolio to deliver over 25% volume growth during FY27, supported by a robust innovation pipeline, expanding distribution, and favorable industry trends. With premium brands accounting for an increasing share of our business, we remain confident of sustaining EBITDA margin of around 20% for FY27, while continuing to invest behind our brands and strengthen our long-term competitive position.

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, everyone, and over to you, Dilip.

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

FY27 has started with a strong financial momentum as we continue to deliver higher profitability, margin expansion, improved returns, and strong cash generation. Our performance is testament to the strength of our business model, driven by premiumization, operating leverage, input cost stability, and persistent focus on disciplined execution and capital allocation.

During quarter one of FY27, we delivered a strong all-round performance with total IMFL volume of 10 million cases, reflecting 3% year-on-year growth. The Prestige & Above category continued its strong upward trajectory, recording 36% volume growth.

This performance was supported by a strong brand momentum and premiumization-led mix improvement. Regular volume degrowth was due to higher base of quarter one of FY26 after the change of route-to-the-market in the state of Andhra Pradesh and impact of policy changes in Maharashtra and Karnataka.

On profitability front, gross margin during the quarter was 49.1%, representing 610 basis point expansion on year-on-year basis and 110 basis point expansion on quarter-on-quarter basis. Gross margin improved on year-on-year basis due to relatively benign raw material scenario coupled with ongoing premiumization.

Raw material accounted for 75 basis point of gross margin expansion during the quarter. This is despite the recent volatility in the packing material prices, which resulted in approximately 30 crores of financial impact.

While company continues to monitor the West Asia crisis, we are confident of our margin expansion trajectory in FY27. Furthermore, the impact of price increase in quarter one of FY27 is about 75 basis points.

EBITDA margin for the quarter stood at 20.7%, expanding by 536 basis point on year-on-year basis, highest-ever level. This strong improvement reflects the success of our premiumization strategy, better operating efficiencies, and continued cost discipline.

It also highlights the benefit of our consistent investment in building a strong premium luxury portfolio over the years. Building on our strong financial performance, both ROE and ROCE improved during the quarter, supported by higher operating profit and better asset utilization.

As the premium and luxury portfolio continue to expand, we expect our capital efficiency and return ratios to further improve. Further strengthening our financial position, we have reduced our net debt by 138 crores since March '26, supported by a healthy profitability and robust cash generation.

Our balance sheet remains strong. We are on track to become net debt-free by quarter two of FY27.

We remain disciplined in our approach to capital allocation, with capex directed towards maintenance, operational efficiency, and essential capacity optimization. Looking ahead, our priorities remain clear: driving profitable growth, maintaining a strong balance sheet, improved capital efficiency, and creating long-term shareholder value.

With that, we now open the lines for questions.

Hi. Good evening and thanks for the opportunity.

Two questions from me. One, can you give us a sense of growth for key luxury brands like Rampur, maybe Royal Ranthambore and any others you want to call out, and then the total sort of luxury brand sales, and if you can give us some sense of the growth on these brands?

The second question is on the margins. Obviously, very strong performance in this quarter.

How do you see these margins sort of sustain and evolve from here, any sense on that, particularly if let's say ENA costs were to rise again down the line? A corollary to that is how much of a connection is there to ENA costs anymore given that you're selling a lot more P&A products?

Thanks.

To answer your first question on the luxury portfolio, last year we had a total turnover of about 475 crores which came from our luxury portfolio, and we gave a guidance of 25% increase in the sales value of our luxury portfolio, and I think we are on absolute target to achieve the 25% growth in our luxury portfolio. Second, about your margin question, we've already given a guidance that we are confident of achieving 20% EBITDA margin in the current year, where there will be pluses, there can be minuses, but overall we feel because of our strong momentum growth in the P&A segment, we should be able to sustain these margins.

Very clear, Abhishek. See, I think on the second question, just a quick follow-up.

Again, I saw the guidance on the 25% growth. My question was 20% margin, do you think this is the right level of margin on a steady-state basis or do you think there's still room for further expansion?

What we had guided, we have achieved in one year. I think first we're looking at 20%, and when we come closer to the year, more clarity will come.

I think as of now, we stick to the 20% EBITDA margin for the current year.

Very clear. Thank you very much.

Hi. Thanks for the opportunity, and congrats on good set of numbers.

My first question is on Morpheus whisky that we launched in upper prestige segment. Where are we in our journey and how that brand has been scaling up now?

Hi, this is Sudhir Upadhyay. See, Morpheus whisky is launched in quite a competitive segment, which is large enough.

We have launched in around 10 to 12 states. We have a initial amount of traction, but I think it's a journey which will go on because it's a competitive segment.

You'll have to still wait and watch for the results to come for the Morpheus, yeah.

Got it. How's the initial response?

Let's say whatever you have gathered from this 10 states, are you gaining or let's say how's the consumer traction for this brand?

See, the way we work on, we completely believe in the distribution part. We believe in the pull strategy.

Distribution has done. There is a positive side of traction which is there from consumer in some of the markets, and we know that it will take some amount of time in seeding and all.

As of now it is positive and we will keep on pushing the brand.

Got it. In line with that question, in this current financial year, which would be the white gaps you would like to fill in your portfolio?

In the current fiscal, there'll be more innovations which will be coming in the vodka side of new flavors being added. Plus in the current year itself we will be getting our tequila also.

These would be the few items, and rest, we have enough brands on our platter and enough growth which now has started taking shape like the Royal Ranthambore, Virasat Indian single malt, which has got a huge response from the market. I think we are going to concentrate in the current year on all these brands.

Got it. Second question is on margins front.

So 20.7% margin, it's quite excellent. Can you divide this margin between your non-IMFL business and IMFL business for the quarter?

Non-IMFL business generate the margin around 11%, 11.5%, and the rest margin, like the overall margin is 20.7%, you can work out, I think it is 23% plus, percent plus on the IMFL business.

Got it. Is this 11, 11.5% for non-IMFL business is sustainable, because historically there has been quite volatile performance, let's say from mid single digit to high single digit, usually we report, and compared to that, 11% looks high.

Generally, the margin used to be in the range of 8% to 11% in the past, but because of some inflationary pressure two years back, the margin came down to mid single digit and 6-7%. We feel that these are sustainable margins in non-IMFL business.

Got it.

Got it. Thank you.

Last question from my end is on capital allocation, given that we have only 100 crore of debt and we would be virtually becoming debt-free next quarter onwards, and I know that you have already announced 20% dividend payout policy, but after incurring 150 to 200 crore of capex, also there would be substantial money would be left on the table. What's your future plan for that?

Let's say you would be increasing your dividend payout ratio or would do some capex or acquisition on that front?

Right now we had made a target of becoming a debt-free company, which we are going to become a debt-free company. Last quarter we also announced a minimum dividend distribution policy of 20%.

I think once with becoming a debt-free and the cash coming is acquisition, we will go for any acquisition only if it is makes sense to the shareholders, because if you see the history of Radico, we have always grown organically. As of now, our maintenance capex would be in the range of 150 to 170 crores, and rest of the money as the board decides will be seen then.

Got it. Thank you and all the best.

good evening and congrats again on an exceptional set of numbers. Just had two questions.

One was on After Dark. The brand has done exceptionally well since you relaunched it a few years back.

I was just trying to understand that given that the trajectory has been very strong even last two years, what prompted a kind of repackaging, relaunch kind of a strategy, because it was anyways doing very well? Is it centered around certain markets that you think that a refresh was needed?

Little bit more color on that would be helpful. Actually,

this After Dark segment is one of the largest segments. Last year we reported a growth of 50% in volumes, we did about 3 million cases, and we have done a total internal study with the research, and then we have come out with this beautiful After Dark Blue, which resonates with the consumer, and the market is very big, and in fact we've launched it in Uttar Pradesh where we are getting very positive signals.

I think we are very confident that After Dark Blue in the coming years will become a very good brand, we should see good momentum in the brand.

Is there a blend change also here, Abhishekji? Is there a blend change also?

No. Got it.

Got it. The second question was really on the India-UK FTA change.

Just wanted to get your sense on pricing, promotion, laddering, any changes that you expect from a portfolio perspective given that global competitors will make some pricing changes, just by the matter of fact that they're bottled-in-origin. Just wanted your thought process on what tweaks you may need to make over the next few months, is there something in the pipeline already, etc.?

Right now it's too early to comment, but with our estimate, even if they pass on, the retail price will go down by only 7% to 8%. Secondly, if you see our single malts are already priced higher than the competition.

Like Rampur Double Cask, the average rate would be about 8,000 to 8,500 rupees. Virasat, what we have done, will be in the range of 4,000.

As it is, we are priced higher than them. Today's consumer is looking at quality brands, I think as of now, our strategy remains the same.

We will continue to focus on our single malts and continue to spend behind that.

Got it. Great.

Thanks and all the best. That's it from me.

Thank you.

Hi sir. A few questions, specifically first on the UK FTA.

What kind of a competition you think is spanning out in the luxury segment specifically, any early signs of this extensive competition, any major brands where you think that now would be imported by the competitor?

Right now it is too soon to comment. As I said in my earlier answer also, is our luxury portfolio is very different, and we are into the single malt category where the price elasticity is a lot, and it all depends on the consumer preference.

Also if you've seen, the Indian single malt is outpacing the global malts in India. I think it's a long way to go, and more than price, it is the taste where our luxury portfolio differentiates from the competition.

Also in the global market, we are competing with all the global giants. I think it won't be such a mover and shaker at all.

Right, sir. Sir, just one more thing on the luxury part itself.

What I understand, it must be closer to 3% of the total India IMFL volumes. Is there any sense we can get what would be the value contribution from the luxury part industry-wide?

This is industry-wide question.

Value you mean sales-wise?

Sir.

It's very difficult. Just a guesstimate, it should be double.

I think if it's 3, then it'll be 6. Okay.

Okay. Right.

Maybe if you can give some sense about any sort of changes we have seen in Karnataka actually on both popular and the P&A segment, what kind of an impact you have seen on both popular and P&A? See,

Karnataka, it has been a very, very progressive side of the policy, and we have seen the government, the way they are going on. They have rationalized the premium brand pricing 1.5 years back also, and at that time there was a P&A growth of around 28%, and our P&A category has doubled the volume at that time.

Now again, taking the learnings from there, they had again rationalized the pricing for the premium brands. This time the P&A category has grown, for the quarter one I am talking, the P&A category has grown by 9%, whereas our portfolio of P&A has grown by 83%.

It is very positive side of it. The government is thinking on the right line, and since we have a strong portfolio there of all the brands, when you talk of Rampur Single Malt, or Jaisalmer Indian Craft Gin, or Sangam, Virasat, Royal Ranthambore, and then Morpheus brandy, Magic Moments, After Dark.

That's the strong portfolio which we have. We are pretty positive on that side, and considering the cosmoculture in Karnataka, we think that it has a long way to go.

Right. Right, sir.

Lastly, on the ENA part, just want to understand, given the fact the kind of growth you have seen in last few years, I believe your requirement for the ENA would have gone up substantially versus I believe your capacity is close to 30 crore if I'm not wrong. Any plans to sort of increase the capacity for the captive requirement?

I think the outsourced ENA for the mass brand is amply available, and with the capacity expansion done in last 2-3 years, most of the states are becoming ENA-surplus. I don't think that there is any compelling reason to go for capex and do another capacity expansion.

In future, as we are completely becoming debt-free, if the need arises that we can generate that kind of ROI, then we will think about it, but as of now.

What is your total requirement now, ENA requirement, captive?

Our total requirement is in the range of around 28 to 30 crores between our IMFL and non-IMFL, both put together. Between our Rampur, Sitapur plant and our joint venture, we make 33 crore liters.

Some we sell because of the logistic reason from UP, but that quantity we buy in southern states and some eastern states.

Right, sir. Thank you, and all the best, sir.

Thank you.

Sir, thanks. Congrats on great set of numbers again.

My first question is on South India, specifically Tamil Nadu and Karnataka. Tamil Nadu, of course, the buzz is there that government there will reform the sector, and today the news has come that TASMAC shops will be privatized.

I wanted to understand historically how big you have been in Tamil Nadu market, and given there are other examples of privatization in other states, do you see a big potential for your company and industry in Tamil Nadu based on whatever assumptions are available? I know you don't have the details, but fair to take the example from other states.

In Karnataka, post the tax reforms, the number of slabs have become half and clearly there is much higher growth at mid and premium end of P&A. If you could comment on how things have evolved for you and for the industry, because everyone is seeing very strong growth there in the last one or two months in the mid and top end of the P&A.

That is my first question.

To answer your first question about Tamil Nadu, Tamil Nadu is the largest market of the country. All the signs are positive, initially they've also started ordering on the tertiary sales, and there are a lot of industry meetings also going with the excise.

I wish and pray that it becomes a open market. Like Andhra, when it opened up, we didn't know that we'll become the largest there with 25-26% market share.

Tamil Nadu is basically a brandy market, and our Morpheus brandy is doing exceedingly well in the premium space. It's a wait and watch, but it can be a very big market for entire liquor industry.

To your second question about Karnataka, I think Karnataka, it's the most progressive policies what they have come out with. The P&A growth in the first quarter has been 9% of the industry, whereas our P&A growth has been 83%.

Right now the MRPs are just getting settled, the exact fit will start coming from July onwards. I think Karnataka will be a very interesting industry for the P&A category, for the industry and especially Radico.

Sir, my second question is slightly structural. When we hear the concall of any liquor company, we hear very similar things that everyone is launching flavored vodka, flavored spirits, flavored this, flavored that.

You have been one of the early movers here and you have done exceedingly well. My question is, will this become a challenge going ahead at some stage that differentiation then will become a problem, because in this kind of a me-too strategy which other companies are also doing, then what will happen in such a scenario?

Everyone will have the same flavored guava, flavored this, flavored that. Wanted to understand that from a innovation perspective.

You're 100% right. When I launched Magic Moments vodka in 2006, that time the vodka saliency was 1% and there were hundreds of vodkas launched, but Magic continued to become the market leader with 60% market share in two decades.

What I see, globally 28% of the global industry is vodka. In India, last five years, 20% growth.

Now what we are seeing is a meteoric rise. I think it's a multiyear story for vodka, and the more the brands come, the category gets buoyant, and eventually the consumer sticks to one or two brands.

I think the more competition which will come in this space would be very healthy for the industry and for the category to expand. I think it's a very, very positive sign for the vodka as a category.

Sir, the last quick question. In Maharashtra, you are slightly differently placed versus some of the other listed companies, because you do have some level of presence in the MML.

If you could update us on how your MML has done through that joint venture, and how has the industry shaped up in terms of MML? After December, when the lapping up of base happens, what will be your expectation on non-MML, essentially IMFL growth for the industry and for you?

Sudhir, industry first.

See after this introduction of the MML last year, there has been a degrowth in the overall industry. Last year we have seen a 35% degrowth.

Right now we are seeing a 20% degrowth in the quarter one. For a change, if we talk about our P&A growth, which is coming in quarter one is around 10%.

The industry has degrown in quarter one by 20%, and we had grown by 10% on P&A. That's the positive side of it, where the consumers are coming back to their favorite brands.

Second part is that regarding MML, I think that is already settled at 6 to 7 lakh cases only. We had a presence there and we have around 7-8% of the market share there, and that is always continuing.

We think that prestige and above will do much better in the times to come.

Sure. Thanks.

That's all from me. Thank you.

Yeah. Hi, team.

Thanks for taking my question. I had couple of questions to start with.

The industry leader typically spends 10% to 11% on A&P, and those guys have been guiding for 5, 6% P&A growth, right? While we look at Radico, we typically spend 7-8% and we are doing 30% plus and guiding for 25%.

Wanted your insight on this, is there a need for us to increase A&P and gain more market share, or how does this dynamic work? Would want to hear your thoughts on this.

Shantanu, if you have seen, we will be the only company to create organically all the brands, and in the last 30 '98 we launched 8PM, and we have maintained our ad spend in the range of 7% to 8% maximum. I think that's a fair enough money to make the noise.

It depends where you spend the money. I think it is a good enough money to spend and create and grow the brands.

I think we've spend a lot of money on direct marketing, on visibility, in shop, digital, where the money really contributes for the brand. That is showing in the result in the last 10 years we have always outpaced the industry in terms of P&A growth.

Absolutely. That sounds pretty impressive.

My second question is on the regular portfolio. Now, last year, obviously on a corrected base, we grew 30%, we did close to 20 million cases ex-royalty.

How do we see that segment growing now, let's say if I just want to stick to this year, FY27, how do we see regular volumes growing?

Shantanu, what we have always maintained, that our aim is to grow the P&A segment, where we have upgraded our guidance from 20% to 25% for the current year. Regular brands, we only sell in those states where we make money, which we continue to do it.

Depending on the industry there, we will get the similar kind of growth, but our focus is more on the P&A side.

Perfect. Sounds good.

One last question, Abhishek, anything on Bihar? Is there any development there, if you could share, would be helpful.

Thanks.

Bihar has been one of the largest markets when it was a wet state in terms of white spirits, and all our brands were very popular, 8PM, everything. I wish we get a good news what the industry has been waiting for more than a decade now, God knows.

Right now there's no noise as such.

Okay. Thank you.

Thanks for taking my question. I have a few questions related to P&A volumes.

Just wanted to have some clarity on Q2 volumes. Before FY26, we generally saw Q-o-Q growth in Q2 versus Q1 of around 20% to 30%.

I guess this reflects basically a dip in volume in summer months in Q1. Do you see that trend resuming for this year, where the Q2 will see another quarter of healthy volume growth for us in P&A?

We don't give quarter-on-quarter guidance, we give an annual guidance, which we already have done, where we have increased the yearly guidance from 20% to 25%. What I can say, the brands are super buoyant, and we are seeing huge traction for the P&A category of Radico's portfolio.

Sure. Thank you.

Second question pertains to we have grown 36% in P&A for first quarter, and for the full year, we are aiming for 25% plus growth. If I consider 25%, then for the balance nine months, it will be 22% growth.

Just wanted to have some clarity around Q1, the volume growth what we have seen in Magic Moments of around 43%. Is there any loading one-off, or do you consider Magic Moments volumes can sustain million-case monthly trend for the rest of the year?

To answer your first question first, Radico never believes in loading the trade. That's why if you see our outstanding, etc., is always because our credit control is very strong, and Magic, it is absolutely the tertiary sales which are happening.

As I said, it's a multiyear structural shift which we are seeing in the vodka category, and what I can say that month on month we are seeing great traction in Magic Moments vodka.

Sure, thanks for the clarity. That means rest of the portfolio, if they sustain and Magic Moments sustains, then you can outdeliver on your guidance for the full year.

Thanks for that. Lastly on this royalty volumes have seen a dip, and with Tamil Nadu sort of expected to open up, can you throw some light around what exactly is happening with the royalty volumes?

The

royalty volumes which we had said that earlier we were not present on ourselves in Andhra, and when it opened up, we came and we said we convert everything into our own volumes. That's why we've become the largest there, 25% market share.

I think if Tamil Nadu opens, it will be anybody's guess. At the moment, it's only Tamil Nadu where we are in royalty, whatever small number you see,

it's only Tamil Nadu. It's only Tamil Nadu.

Okay. I was of the view that we don't have royalty model in Andhra, but it was there and now since we have shifted to our own, then royalty is coming down.

Theek hai. Thank you.

Thanks a lot, and all the very best for the future.

Thank you.

Hello, sir. Hope I'm audible.

Congrats, sir, on sort of cornering the vodka market. I believe we've made some great gains, and you've already earlier said that you see the market has grown from 4% to 6%.

Where do you see this vodka market ending up in the next 2 to 3 years, and do you think we would be able to sustain our market share gains because I believe some other brands are also growing too fast, at least in the near quarter? That's my first question.

As I said, globally vodka is 28. When I started Magic in 2006, it was less than 1.

I would have never given 20 years to become at 6, I don't know what trend. What we are seeing now in the last 4-5 years with 20% plus growth happening year on year, and it's now become with the Gen Z coming in, vodka is a more easy, mixable drink.

It promotes the cocktail culture, it promotes the nightlife going out, if you see the number of restaurants which in India has started opening up. I think it is all that culture and lifestyle which is supporting this sector to grow.

I think in the coming years, India is going to open up more, there'll be more number of eateries. I think that culture has started.

That's why in my thing I said I see it as a multiyear structural shift towards the white category happening.

Okay. Got it, sir.

Sir, on defending our position, how would we sort of defend our position against the more luxury vodkas or the premium-branded ones, or those are two completely different segments from Magic?

They're completely different. Like a Grey Goose, Belvedere, they are very, very high-priced compared to us.

Okay. Any plans to launch a mid-premium vodka in the near future, given that mid-premium is a very lucrative category with high margins, something above Magic?

Right now we are concentrating more on the innovation on the flavors, like the flavors of India what we have launched, we want to get the ethnic flavors of India into this category. I think it's doing extremely well with a 43% growth.

Got it, sir. Thank you, sir, and all the best.

Thank you.

Hi, team. My question is on this premiumization.

This has been actually a consistent growth driver. Now beyond this P&A volume, what are the next levers that will improve the profitability?

Is this going to be a premium mix within the P&A or pricing or an innovation, or it's going to be the change in occasion of consumption?

I think the P&A is one part. The second is our luxury and semi-luxury portfolio.

I think those are also really gaining a lot of traction, and the higher you go, higher your margins are and more profitable it is. I think we are in the right direction.

We are concentrating a lot on the on-trade channel. We are concentrating a lot on the advocacy to explain the differentiation between our malts and the global malts.

I think if I see India 10, 15 years down the line, the luxury will be an important part of the portfolio, very important part.

Got it. Just a follow-up question to the previous participant on the acquisition part.

What would you consider as an inorganic opportunity and at what point in time, and what are the gaps in portfolio would you like to address through acquisition rather than internal development?

As I told earlier, we've never acquired any brand, etc., and I think we have the capability of creating our own brands, and we have always believed in build versus buy. I think our pipeline is quite robust, and we don't see any opportunity on acquiring a brand.

Okay. Last question is on the exports.

Now the Indian whisky is actually gaining global traction. Now how do you see exports volume over the next 3 to 5 years time period, and is the objective is to build a brand or is to meaningful profit contribution at your end?

See,

in terms of our exports, our brands are currently available in over 100 countries, and we've always believed in building brands than just pure selling, both in terms of our value for money or prestige and above category or the luxury category as well. We are not only catering to the Indian diaspora, but also to the mainstream consumers.

The fact is the global travel retail as well. We're currently in about 63 travel retail outlets, and where we're catering our luxury portfolio to travelers across the globe, all the mainstream consumers as well, and that will continue to remain our focus.

As you may have read, heard, or whatever, Rampur, Jaisalmer are one of the most loved brands globally coming from India. That will continue to be our focus area.

I completely agree with that, sir. Just a final question on the same.

I just wanted to follow up on this. What will be the volume through value contribution of exports on our overall base?

The volume is about 6%, 5% to 6% on that, and value is obviously higher.

Okay. Thank you, sir, and good luck for future.

I had mainly two questions. I wanted to ask, how is our on-trade expansion going on?

We had plans of 1,000 events for FY2027. Are we going on track?

Secondly, we had plans to expand from 50 airports to 100 airports, and is that also going on track?

Let me address the airport thing first. As I said, we were in 50 and as I said in the last question, we are now at 63.

That's very much on track, and we remain very confident of achieving that number of 100 in the coming years on that. In addition to that, we are also now with airlines as well.

We are the only Indian single malt available on Air India. Our Jaisalmer gin is now available on SpiceJet as well.

These are landmarks or milestones that we are achieving. On the on-trade,

I think, as I said earlier, on-trade has been our major thrust area for the last 2 to 3 years, because that is where the luxury drive. Starting from manpower to the advocacy sessions to events, I think we have been more than the numbers we are talking about.

I think we've gone quite aggressive on the on-trade.

Secondly, I would like to ask, being a Gen Z myself, I don't see any influencers on our Instagram channel promoting our products. I see many influencers from the other brands, they educate about our products, what kind of cocktails we can make from that product.

We see the vibe and go and try it, but I don't see anything in our Instagram page. Are we having any plan to hire any influencers and do the same thing?

Yes, just as influencers are a big draw these days, and we already have plans on that, and you will very soon see that coming on all our digital channels.

Okay. Lastly, I wanted to ask, are we planning any flavored brandy to occupy the South Indian markets, and also are we planning any ready-to-drinks as we are seeing the home consumption expands a lot in metropolitan cities?

Not at the moment. Not though we have in the international market flavored brandy, but not for the Indian domestic market.

RTD, we're not looking at that at the moment.

Okay. Thank you.

To conclude, our performance this quarter reflect the continued success of our premiumization strategy, disciplined financial management, and consistent execution. Strong profitability and expanding margin and improved return ratios and healthy cash flow generation reinforces the quality of our business and gives us confidence in sustaining the profitable growth.

Backed by a strong balance sheet and a growing premiumization portfolio, we remain well positioned to capitalize on future opportunities and create long-term value for our stakeholders. Thank you for joining us this call today and for your continued support.

We look forward of speaking with you again next quarters.