Alcohol Stock held by Mukul Agrawal jumps 6% after reporting 62% YoY increase in net profit

Synopsis: Radico Khaitan shares rose 6 percent after strong Q3FY26 results, reporting 19.5 percent revenue growth, 45 percent YoY EBITDA growth by 45 percent to Rs. 265 crore, 62 percent net profit jump to Rs. 155 crore.

This company is one of the most recognised IMFL (Indian Made Foreign Liquor) brands in India and focuses on distillation and bottling for branded players and canteen stores of the armed forces is now in the spotlight after reporting 62 percent net profit growth in Q3 results.

With a market capitalisation of Rs. 40,114 cr, the shares of Radico Khaitan Ltd closed at Rs. 2,996 per share, increasing 6 percent in today’s market session, making a high of Rs. 3,000, up from its previous close of Rs. 2,834.75 per share. As of Q3FY26, Mukul Agarwal holds a stake of 1.05% in the company. 

YoY performance 

Revenue from operations rose by 19.5 percent to Rs. 1,546.7 cr in Q3FY26 from Rs. 1,294.2 cr in Q3FY25. Gross margin improved from 43 percent to 46.5 percent. EBITDA significantly increased by 45 percent from Rs. 183.2 to Rs. 265.4 cr. EBITDA margin improved to 17.2 percent from 14.2 percent. Net profit increased by 62 percent from Rs. 96 cr to Rs. 155 cr over the same period. Net income margin improved to 10 percent from 7.4 percent. 

QoQ performance 

Revenue from operations rose by 3.5 percent to Rs. 1,546.7 cr in Q3FY26 from Rs. 1,494 cr in Q2FY26. Gross margin improved from 43.6 percent to 46.5 percent. EBITDA rose by 12.4 percent from Rs. 236 to Rs. 265.4 cr. EBITDA margin rose to 17.2 percent from 15.8 percent. Net profit increased by 12 percent from Rs. 139 cr to Rs. 155 cr over the same period. Net income margin improved to 9.3 percent from 7.4 percent. 

Key Business Highlights 

Revenue from operations grew 19.5 percent year-on-year, driven by strong volume growth in IMFL. Total IMFL volumes rose 16.7 percent, with the Prestige & Above segment growing a robust 25.9 percent Regular volumes returned to a strong growth trajectory after nine quarters of decline, aided significantly by the change in route-to-market in Andhra Pradesh, with momentum continuing into FY26. Non-IMFL revenue increased marginally by 1.5 percent, impacted by lower bulk alcohol sales.

Gross margin for the quarter stood at 46.5 percent, marking a 350 bps YoY and 290 bps QoQ expansion, supported by benign raw material prices and ongoing premiumisation. Raw material cost efficiencies alone contributed 225 bps to the margin expansion. The company remains optimistic about stable to benign pricing for ENA and grains in the near term.

The company continued prudent investments in brand building and new launches to sustain growth and market share. Advertising and sales promotion (A&SP) spend increased to 6.9 percent of IMFL sales in Q3 FY26 from 5.5 percent in Q3 FY25, with management targeting a 6 to 8 percent range going forward. The quarter also included an exceptional charge of Rs. 9.56 crore related to changes under the New Labour Code.

Radico Khaitan Limited, established in 1943, is one of India’s oldest and largest alcohol manufacturers. With over 75 years of distillation expertise, it has evolved into a leading branded IMFL player, boasting a strong portfolio of over 15 popular brands, including 8 PM, Magic Moments, and Morpheus.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Alcohol Stock held by Mukul Agrawal jumps 6% after reporting 62% YoY increase in net profit appeared first on Trade Brains.