Addressing analysts during the company’s earnings call, Khaitan said UP’s excise policy, such as with composite shop licenses, should be followed by more states as it allows consumers to choose from beers, IMFL (expand), and foreign brands all in one shop, and without having the retailers opt for separate retail licenses.
Most states in India have separate license for retailers selling beer and wine and spirits, thereby not allowing the convenience of a “composite shop” where consumers can buy everything under one roof.
Khaitan said a lot of states in India are contemplating following the UP-excise model. “Retail should be free and left to the consumer as to what they want to buy. The great thing that has been done by the Andhra Pradesh government is that they have opened up the retail to private, they have made brands available on the shelf, and the consumer is free to choose from different price points,” he said.
“Radico has obviously gained from this policy. Like we are strong in UP, we have also become strong in Andhra Pradesh primarily because of the availability as a national company, this growth is likely to sustain in the year ahead as well. We are aware that the government is progressively looking at how to improve upon the existing policy,” said Khaitan.
Radico Khaitan posted total volume sales growth of 48.8% year-on-year (yoy) for the July-September quarter, with net revenue from operations growing by 33.8% YoY reaching Rs 1,493.9 crore. The volume growth is driven by regular and other categories, which grew by 79.6% YoY and prestige and above growing by 21.7% YoY.
The standalone net profit for the September quarter at Rs 138.95 crore grew by 69.1% YoY, while revenue from operations at Rs 5,056.72 crore grew by 29.4% YoY.
The company plans to expand its single malt offerings with Rampur continuing to be one its star performers, along with white spirits, especially with their brand Magic Moments which crossed seven million cases of sales in FY25.
