Radico Khaitan surges 6%, hits record high; analysts see more upside

Looking ahead, Radico's management remains confident of delivering strong double-digit growth in the Prestige & Above category, enhanced profitability and a continuous focus on cash flow generation.

Radico Khaitan share price

 

Shares of Radico Khaitan hit an all-time high of ₹3,430, surging 6 per cent on the BSE in Thursday’s intra-day on healthy business outlook. The stock price of the breweries & distilleries company surpassed its previous high of ₹3,421.70 touched on October 23, 2025.

 

In the past six months, Radico Khaitan has outperformed the market soaring 36 per cent, as compared to 5 per cent rise in the BSE Sensex.

What’s driving liquor stock?

 

Radico Khaitan (Radico) is among the oldest and one of the largest manufacturers of Indian Made Foreign Liquor (IMFL) in India. The company is also one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant business barriers to entry.

 

With the reopening of Telangana market and the free market approach adopted by Andhra Pradesh (AP), Radico has posted a strong growth in these states. For AP, the market share improved from 10 per cent in FY25 to 30 per cent in the second quarter of the financial year 2025-26 (Q2FY26).  ALSO READ | Reliance Power shares gain 4% amid plans to strengthen governance 

The company delivered a strong all-around performance with total IMFL volume of 9.34 million cases reflecting a 38 per cent year-on-year (YoY) growth. Prestige & Above (P&A) category continued steady upward trajectory, and recorded 22 per cent volume growth and a 24 per cent value growth, with realisation improved by 2.1 per cent YoY basis.

 

Looking ahead, the management remains confident of delivering strong double-digit growth in the Prestige & Above category, enhanced profitability and a continuous focus on cash flow generation.

 

On the profitability front, gross margin stood at 43.6 per cent, flat on YoY basis and up from 43 per cent in Q1FY26. The stability in margins reflects a benign raw material environment and the company’s disciplined cost management even as the mix tilted towards the regular segment this quarter. The management remains optimistic that ENA (Extra Neutral Alcohol) and grain prices will stay stable to favourable for the rest of FY26, providing continued margin support.

Analysts see more upside in Radico’s stock price

 

Analysts at ICICI Securities recommend a Buy rating on Radico with a price target of ₹3,710 (valuing at 61x average FY27-28E earnings).

 

Luxury portfolio is expected to achieve revenue of ₹500 crore, largely volume-led in FY26. The brokerage firm expects P&A segment sales volume to grow at CAGR of 19 per cent over FY25-28E (revenue growth of 22 per cent). On the other hand, regular segment sales volume has grown by 67 per cent YoY to 10.5 million cases, driven by change in route to market strategy in Andhra Pradesh. Q3 will be another quarter of strong sales for regular brands and then analysts should expect a normal growth of 6-8 per cent in the regular brands. Overall, the brokerage firm expects Radico’s revenue to grow at a CAGR of 19 per cent over FY25-28E.  ALSO READ | JP Power share price up 12% as Adani Ent's rescue plan for JAL gets creditors' approval 

According to analysts at Motilal Oswal Financial Services, Radico’s debt is likely to decline steadily, supported by healthy free cash flow generation. The company has reduced net debt by ₹140 crore since March 2025 and is on track to be debt free by FY27. 

 

Radico remains focused on accelerating the premium and luxury growth while driving greater efficiency across operations with disciplined capital allocation. The valuation gap with United Spirits has narrowed significantly, reflecting market recognition of Radico’s brand strength and execution. Despite past margin pressures, the company’s ability to sustain premium-led volume growth makes it a compelling long-term story, the brokerage firm said. Analysts believe a ~35 per cent EPS CAGR provides adequate support for sustaining rich valuations. The brokerage firm values the company at 60x P/E on Sep’27E EPS to derive a target price of ₹3,600.