Radico Khaitan’s quarterly profit jumps 66% after premium spirits lift margins

India’s Radico Khaitan reported a sharp rise in quarterly profit on Tuesday as stronger demand for premium spirits helped lift margins and offset a more challenging broader drinks market.

The Indian liquor maker said consolidated net profit for the quarter ended September 30 rose 66% from a year earlier to 2.32 billion rupees, or about $24.39 million. Revenue from operations increased 10.4% to 55.8 billion rupees.

The results point to continued momentum in the company’s move toward higher-priced brands, a strategy that has become increasingly important for spirits producers seeking stronger profitability. Radico Khaitan, which makes Jaisalmer craft gin and Royal Ranthambore whisky, has been shifting its focus from mass-market labels to premium products that usually carry higher margins and are often less exposed to price sensitivity.

That shift was visible in the latest quarter. The company said volumes in its “prestige and above” segment grew 36%, helped by stronger vodka sales. Its overall core profit margin expanded by 462 basis points to 20.4%, showing how a richer product mix can improve earnings even when revenue growth is more moderate than profit growth.

The company also said changes in state taxation are beginning to support that strategy. It pointed to a rationalized duty framework in Karnataka that is showing early signs of creating a more premium-friendly market. It also said it was seeing encouraging signals from Tamil Nadu. In India, state-level alcohol regulation and taxation can have a major effect on pricing, product mix, and consumer demand, so shifts in those markets are closely watched by producers.

The latest figures suggest that premiumization in India’s spirits market is still providing room for growth. That matters beyond one company’s earnings. For the broader beverages industry, including spirits and other alcohol categories, the results may indicate that Indian consumers are continuing to trade up to higher-end products even as some international markets remain softer. If that pattern holds, it could help support both volumes and margins for producers with strong premium portfolios.

Radico Khaitan also announced management changes separately on Tuesday. Finance chief Dilip Banthiya was appointed to the board as an executive director while continuing in his role as chief financial officer, effective October 28. The company said Senior Vice President Saket Somani would become deputy chief financial officer from the same date.

Investors responded positively to the earnings report. Shares of Radico Khaitan were up about 2% in afternoon trading at 4,285 rupees.

The company’s performance adds to evidence that premium spirits remain one of the stronger parts of India’s alcohol market. While lower-priced categories can be more exposed to pressure from taxes, inflation, or shifts in household spending, higher-end labels often benefit from more stable demand among urban consumers and from changing consumption habits tied to status, gifting, and experimentation across categories such as whisky, gin, and vodka.

Radico Khaitan’s brands have been part of that trend, and the latest quarter showed that the company is not only selling more in its upper-tier portfolio but also extracting better profitability from that mix. The gap between revenue growth of 10.4% and profit growth of 66% reflected that margin improvement.

The company did not outline fresh guidance in the reported update, but the margin expansion and premium segment growth are likely to keep attention on whether it can sustain the same pace through the rest of the fiscal year. Market participants will also be watching whether the early signs from Karnataka and Tamil Nadu develop into a broader tailwind for premium spirits in key state markets across India.

At an exchange rate of 95.1350 rupees to the U.S. dollar, the quarter’s reported profit translated to about $24.39 million. Reuters reported the results from Bengaluru.