RADICO Q2 FY27 Results Analysis: PAT Jumps 66%, EBITDA Margin Expands 460 bps
RADICO's Q2 FY27 numbers came in strong, with revenue of Rs. 1,745.10 Cr (+16.81% YoY) and PAT growth of +66.49% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 27, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 1,745.10 Cr (+16.81% YoY) |
| PAT (Q2) | Rs. 232.35 Cr (+66.49% YoY) |
| EBITDA margin | 20.56% (+460 bps YoY) |
| EPS (Q2) | Rs. 17.34 (+66.25% YoY) |
| Market cap | Rs. 57,881.16 Cr |
| CMP | Rs. 4,319.85 |
Quarter Snapshot
Radico Khaitan delivered a record quarter with net revenue of Rs.1,745.10 Cr (+16.81% YoY), EBITDA margin of 20.56% (+~460 bps YoY), and PAT of Rs.232.35 Cr (+66.49% YoY), holding above the ~20% FY27 margin guidance. The blemish is the missed net-debt-free-by-Q2 checkpoint (Rs.174.07 Cr outstanding) and a working-capital build that pulled CFO/PAT to 0.82x. Premiumization-driven margin expansion and deleveraging remain intact, making the H2 net-debt elimination target stretch-but-achievable.
Key Investment Insights
Key Positives
- Net revenue (net of excise) grew 16.81% YoY to Rs.1,745.10 Cr, a record quarter; QoQ net revenue rose 3.59% despite gross revenue falling 4.87%
- Consolidated EBITDA margin expanded ~460 bps YoY to 20.56% (standalone 20.47%), holding above the ~20% FY27 guidance
- PAT grew 66.49% YoY to Rs.232.35 Cr with no exceptional items; H1 PAT up 71.04% YoY to Rs.461.95 Cr
- Gross margin expanded 440 bps YoY to 48.04%, consistent with premiumization mix shift (excise duty fell to 68.74% of gross revenue from 70.46%)
- Finance costs fell 29.88% YoY to Rs.11.42 Cr; net debt reduced by Rs.58.17 Cr in H1 to Rs.174.07 Cr
- H1 free cash flow of Rs.214.38 Cr covered the Rs.120.58 Cr dividend and Rs.84.75 Cr of debt repayment
- Effective tax rate eased to 24.85% from 25.35% YoY
Risk Factors
- Net-debt-free by Q2 FY27 checkpoint was missed: net debt stood at Rs.174.07 Cr at September 30, 2026 (borrowings Rs.247.07 Cr vs cash/bank/loans Rs.73.00 Cr)
- Trade receivables rose 27.52% since March to Rs.1,516.88 Cr and inventories built Rs.95.00 Cr, pulling CFO/PAT to 0.82x and CFO/EBITDA to 0.53x
- Gross margin gave back 109 bps QoQ (49.13% to 48.04%) with inventory build tripling to Rs.31.89 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.