Radico Khaitan: How the Alcohol Stock Is Riding the Premiumization Wave to Boost Profits

Synopsis: Radico Khaitan is capitalizing on India’s shift toward premium spirits, with its Prestige and Above portfolio driving strong volume and revenue growth. Flagship brands like Magic Moments and Royal Ranthambore are scaling rapidly, while luxury offerings and continuous innovation, supported by distribution and exports, position the company to sustain long-term profitability through premiumisation.

India’s alcoholic beverages market is shifting rapidly from volume-driven sales to a focus on premium experiences, as consumers trade up and brands push for higher margins. At the forefront of this change is Radico Khaitan, famously known for Magic Moments, which is steadily transforming from a mass-market player into a powerhouse of premium and luxury offerings. But how exactly is the Magic Moments maker riding this wave of premiumisation to boost its profits?

About Radico Khaitan 

Radico Khaitan Limited is among India’s oldest and largest manufacturers of Indian Made Foreign Liquor. The company traces its origins to 1943, when it began operations as Rampur Distillery Company. Over several decades, it built scale as a bulk spirits supplier and bottler for other liquor manufacturers before transitioning into a brand-led business. A key inflection point came in 1998 with the launch of its first proprietary label, 8 PM Whisky. Since then, Radico Khaitan has steadily expanded its presence in the branded space and today stands out as one of the few players in the country to have created its entire brand portfolio through organic development.

The company is also one of the largest suppliers of branded IMFL to the Canteen Stores Department, a channel characterised by high entry barriers and stringent eligibility norms. Radico Khaitan operates distilleries at Rampur and Sitapur, along with a facility in Aurangabad, Maharashtra, which is operated through a 36 percent joint venture. 

Its total owned distillation capacity stands at 321 million litres. On the bottling side, the company runs a network of 44 bottling units, comprising five owned facilities and 39 contract and royalty bottling units. In addition to its domestic footprint, Radico Khaitan is among India’s largest exporters of alcoholic beverages, with its brands present in more than 100 countries.

Radico Khaitan’s brand portfolio spans multiple categories and price points. Its premium and luxury offerings include Rampur Indian Single Malt Whiskies, Rampur 1943 Virasat Indian Single Malt Whisky, Sangam World Malt Whisky, Kohinoor Reserve Indian Dark Rum, Jaisalmer Indian Craft Gin, Royal Ranthambore Heritage Collection Royal Crafted Whisky, Morpheus Rare Luxury Whisky, Morpheus Blue Brandy and The Spirit of Kashmyr Luxury Vodka. The portfolio also includes Magic Moments Vodka along with variants such as Magic Moments Remix Pink, Magic Moments Verve and Magic Moments Dazzle, as well as 1965 The Spirit of Victory Premium XXX Rum, Lemon Dash Premium Flavored Rum, After Dark Blue Whisky, 8 PM Premium Black Whisky, 8 PM Whisky, Contessa Rum and Old Admiral Brandy.

The Premiumisation Wave 

India’s consumption story today is being defined by scale, speed and a clear shift towards higher-value spending. The country is on course to become the world’s third-largest consumer market by 2026, with total consumption rising from about USD 1.1 trillion in 2013 to nearly USD 2.1 trillion in 2023. While this is still well short of the US, where consumption stands at roughly USD 18.6 trillion, and China at around USD 6.9 trillion, the direction of travel is far more important than the absolute gap. India has firmly positioned itself as one of the world’s most significant consumption markets, underpinned by its large population and steadily improving purchasing power.

What truly distinguishes India is the pace at which demand is expanding. Over the past decade, consumption has grown at a nominal CAGR of around 7.2 percent, marginally ahead of China’s 7.1 percent and well above the US at 5.0 percent and Germany at 1.0 percent, while Japan has seen its consumption base shrink. This consistent outperformance points to demand growth that is structural rather than cyclical, supported by rising incomes, rapid urbanisation and wider access to branded products and services across categories.

The most meaningful change is unfolding within the income pyramid itself. The number of people earning more than USD 10,000 a year is expected to more than double from about 40 million in 2023 to nearly 88 million by 2028, implying a CAGR of roughly 17 percent. The USD 5,000-10,000 income bracket is also set to expand sharply, growing from 79 million to around 146 million people at a 13 percent CAGR. As lower-income segments gradually shrink, this broad-based rise in higher-income households is pushing consumption towards premium and luxury offerings, strengthening the case that India’s next phase of growth will be driven less by sheer volumes and more by premiumisation.

The Premium Portfolio Shaping The Growth 

India’s spirits industry is witnessing a structural shift towards premiumisation, supported by progressive state excise policies, changing consumer preferences and the growing reliance of state governments on liquor revenues in the post-GST regime. Despite India being one of the largest alcohol markets globally, per capita IMFL consumption remains low at around 2.5 litres, leaving ample headroom for growth as incomes rise and consumption habits evolve. Over time, a large portion of the country liquor market is also expected to transition to IMFL, while white spirits such as vodka and craft gin are emerging as key growth opportunities, aided by better retail experiences, value engineering initiatives and consumers’ increasing willingness to explore premium, experience-led offerings.

Prestige and Above: The Engine of Volume and Value Growth

Radico Khaitan’s Prestige and Above segment has emerged as the core growth engine over the past several years. Since FY2019, volumes in this category have expanded at a compounded annual growth rate of 13 percent, underscoring the consistency of demand for the company’s higher-end offerings. Volumes have risen from 6.1 million cases in FY2019 to 11.3 million cases in FY2024, and further to 13 million cases in FY2025. As a result, Prestige and Above brands now account for 46.1 percent of the company’s total volumes (FY25), a sharp step-up compared to earlier years.

The scale-up has been equally striking in cumulative terms, with the Prestige and Above category recording volume growth of more than 212 percent since FY2019. Alongside volume expansion, realizations have steadily improved, reflecting favourable mix changes and pricing discipline. Average realization per case increased from Rs. 1,307 in FY2019 to Rs. 1,717 in FY2024 and further to Rs. 1,801 in FY2025, reinforcing the role of premiumisation in driving both topline and margin expansion.

Consistent Pipeline of Premium and Luxury Launches

A key pillar of Radico Khaitan’s premiumisation journey has been its ability to continuously refresh and expand its portfolio through well-timed launches across the prestige, semi-luxury and luxury segments. In FY2025, the company introduced Rampur Indian Single Malt Barrel Blush, Jugalbandi editions 5 and 6, and Ankahi Zaffran Spiced Liqueur. In FY2024, the launches included Happiness in a Bottle Craft Gin, Rampur Indian Single Malt Jugalbandi editions 3 and 4, Spirit of Victory 1999 Pure Malt Whisky, Kohinoor Reserve Indian Dark Rum and Magic Moments Pink Vodka.

Earlier years also saw a steady build-up of premium offerings, with FY2023 witnessing launches such as Rampur Indian Single Malt Trigun Cask Whisky, Jugalbandi editions 1 and 2, Sangam World Malt Whisky, Magic Moments Vodka Cocktail and After Dark Blue Whisky. FY2022 marked the introduction of Royal Ranthambore Whisky and Magic Moments Dazzle Vodka. This sustained cadence of launches has ensured that the portfolio remains relevant, aspirational and aligned with evolving consumer tastes.

Execution on the Ground: Q2FY26 Performance Snapshot

The impact of this strategy was clearly visible in Q2FY26, when the Prestige and Above segment delivered its highest-ever quarterly performance. Volumes in this category rose to 3.89 million cases, up from 3.20 million cases in the same quarter last year, translating into year-on-year growth of 21.7 percent. Revenue from Prestige and Above brands increased to Rs. 718.4 crore from Rs. 578 crore, reflecting a growth of 24.3 percent.

In comparison, the Regular and Others segment generated revenue of Rs. 322.8 crore during the quarter. Prestige and Above brands accounted for 68.6 percent of total IMFL revenue in Q2FY26, while IMFL as a whole contributed 70.1 percent of total revenue from operations. Management described the quarter as a reaffirmation of the premiumisation strategy and disciplined execution, noting that overall brand volumes grew 37.8 percent, with the Prestige and Above segment delivering the highest-ever quarterly volumes.

Brand-Level Momentum Across Key Franchises

Magic Moments Vodka continues to be one of the most significant contributors to growth within the Prestige and Above portfolio. During Q2FY26, the brand recorded nearly 20 percent volume growth, with sales of around 2 million cases in the quarter. The company further strengthened the franchise by launching Jamun SpicyMint under the Flavours of India range, following strong consumer response to earlier variants such as Alphonso Mango and Thandai. Management highlighted that Magic Moments sold 6 million cases in FY2024 and 7 million cases in FY2025, and at the current growth trajectory, is expected to add another 1 million cases in the current year, with a longer-term vision of reaching 10 million cases over the next three years.

Royal Ranthambore Whisky also delivered a standout performance, recording 67 percent growth in Q2FY26, driven by strong demand across both civil and CSD (Canteen Stores Department) channels. The brand achieved a 10 percent market share in the CSD segment in September 2025, reflecting growing consumer acceptance despite its premium positioning. Brand “After Dark” emerged as another key growth driver, with volumes of 1.9 million cases in FY2025 and 1.5 million cases already achieved in the first half of the current year, within a category estimated at around 75 million cases. Management reiterated its ambition to scale this brand and build a dominant market share over time.

Luxury Brands, Innovation and the Road Ahead

In the luxury segment, brands such as Rampur Indian Single Malt, Sangam World Malt and Jaisalmer Indian Craft Gin continued to post robust performances, supported by focused efforts to expand their presence across both off-trade and on-trade channels. Newer luxury offerings, including Morpheus Super Premium Whisky and The Spirit of Kashmyr Luxury Vodka, have also gained early traction. Morpheus is currently available in three states and is planned to be expanded to ten states during FY26, while The Spirit of Kashmyr is now present in seven states, with encouraging initial consumer feedback.

Beyond brand launches, growth is being supported by the introduction of smaller SKUs and celebration packs across premium and luxury brands, including Rampur Double Cask, Sangam World Malt, Spirit of Victory 1999, Magic Moments Pink Vodka and After Dark Blue. Management remains confident of sustaining strong double-digit growth in the Prestige and Above category, supported by robust brand equity, a pan-India distribution network, technology-driven R&D, exports to over 100 countries and a continued focus on profitability, lean costs and cash flow generation, positioning premiumisation as a long-term value driver rather than a short-term trend.

At its core, Radico Khaitan’s story is no longer just about selling more bottles, but about selling better experiences to a consumer who is steadily trading up. What began decades ago as a volume-led spirits business has evolved into a carefully built premium portfolio where brand strength, pricing power and innovation work in tandem. With Prestige and Above brands now driving both growth and margins, and luxury labels gaining meaningful traction, the company appears well positioned to ride India’s premiumisation wave for years to come. If execution stays disciplined and consumer aspirations continue to rise, Radico Khaitan’s shift from mass to premium could prove to be its most enduring competitive advantage.

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