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Radico Khaitan Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤22nd Jan 26

Summary : Radico Khaitan reports strong Q3 FY26 financial growth, driven by revenue increase and strategic acquisitions, despite one-off exceptional expenses.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Total expenses (Q3 FY26): 5,21,026.74 Lakhs
  2. Consolidated Total expenses (Q3 FY26): 5,21,026.73 Lakhs
  3. Exceptional items (Standalone Q3 FY26): 955.90 Lakhs (New Labour Codes impact)
  4. Exceptional items (Consolidated Q3 FY26): 955.90 Lakhs (New Labour Codes impact)
  5. Standalone Revenue from operations (Q3 FY26): 5,42,383.82 Lakhs
  6. Consolidated Revenue from operations (Q3 FY26): 5,42,383.82 Lakhs
  7. Standalone Total Income (Q3 FY26): 5,42,644.79 Lakhs
  8. Consolidated Total Income (Q3 FY26): 5,42,644.79 Lakhs
  9. Demand raised by Municipal Council of Rampur for House and Water Tax.
  10. Investment in joint ventures D'YAVOL Spirits B.V. and D'YAVOL Spirits Private Limited.
  11. Standalone Net profit for the period (Q3 FY26): 15,509.15 Lakhs
  12. Consolidated Net profit for the period (Q3 FY26): 15,493.30 Lakhs
  13. Standalone Basic EPS (Q3 FY26): 11.59
  14. Consolidated Basic EPS (Q3 FY26): 11.57
  15. Standalone Total comprehensive income (Q3 FY26): 15,374.21 Lakhs
  16. Consolidated Total comprehensive income (Q3 FY26): 15,359.07 Lakhs

Corporate Overview

  1. Assessing impact of new Labour Codes on past service costs.
  2. Demand raised by Municipal Council for House and Water Tax.
  3. Alcohol and Alcoholic Beverages
  4. Factual and formal, reporting financial results and compliance.
  5. Single primary business segment: Alcohol and Alcoholic Beverages
  6. Acquisition of 47.5% equity stake in D'YAVOL Spirits B.V. (October 12, 2025).
  7. Acquisition of 47.5% equity stake in D'YAVOL Spirits Private Limited (December 03, 2025).

Risk Factors

  1. New Labour Codes impact future costs.
  2. Potential for further regulatory clarifications.
  3. Unreviewed joint venture financial results.
  4. Municipal tax demand issues.

Key Drivers

  1. Strong revenue and profit growth.
  2. Strategic equity stake acquisition completed.
  3. Improved earnings per share.
  4. Unmodified audit conclusion.

Auditor’s Report

  1. Unmodified conclusion on standalone and consolidated financial results.
  2. Reliance on review reports of other auditors for eight subsidiaries and two joint ventures, whose financial results were not reviewed by the primary auditor.

Board Commentary

  1. Impact of New Labour Codes on past service cost (gratuity and leave encashment) resulting in incremental expense.
  2. Demand raised by Municipal Council of Rampur for House and Water Tax (Rs. 699.36 Lakhs) disclosed as exceptional item.
  3. Acquisition of 47.5% equity stake in D'YAVOL Spirits B.V. and D'YAVOL Spirits Private Limited.

Corporate Governance

  1. Audit Committee reviewed and approved financial results.

Management Discussion & Analysis

Future Strategy

  1. Monitoring and assessing impact of new government clarifications and state-specific rules regarding New Labour Codes.

Operational Focus Areas

  1. Compliance with new Labour Codes.
  2. Integration of acquired D'YAVOL Spirits entities.

Performance Drivers

  1. Increased revenue from operations.
  2. Growth in profit before tax and net profit.

Risk Control Measures

  1. Company is actively monitoring and assessing the impact of new Labour Codes and will provide updates.

Critical Risks

  1. Uncertainty regarding full impact of New Labour Codes on future costs.
  2. Potential for further government clarifications on labor laws.
Radico Khaitan Ltd (RADICO) Quarterly Report Analysis & Insights | Dhanarthi