Radico Khaitan Limited (RADICO.NS) Q1 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Radico Khaitan Limited Q1 and FY '26 Earnings Conference Call Hosted by DAM Capital Advisors Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Manyal from DAM Capital Advisors Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. We would like to thank Radico Khaitan management team for providing DAM Capital the opportunity to host Q1 FY '26 earnings call. We have with us the senior leadership team from Radico Khaitan, Mr. Abhishek Khaitan, Managing Director; Mr. Amar Sinha, Chief Operating Officer; Mr. Dilip Banthiya, CFO; and Mr. Sanjeev Banga, President, International Business. I hand over the call to Mr. Abhishek Khaitan for his opening remarks. Over to you, sir.

Good afternoon ladies and gentlemen. Thank you for joining us on our Q1 FY '26 results conference call. Before we begin discussions on Q1 FY '26 results, I would like to provide a brief update on the U.K. India FTA. The negotiations between the 2 governments have been finalized and a comprehensive economic and trade agreement has been signed. In line with the expectations, duty on bulk Scotch has been reduced from 150% to 75%. We have estimated our Scotch requirements valued at over INR 250 crores in FY '26. And we expect significant cost advantages from this development. Thereafter the duty will be reduced in 9 equal installments to settle at 40% in the nth year. In 3 years we expect the import of Scotch of Radico to cross INR 400 crores. Moving on to the quarter performance. The first quarter of FY '26 has set a strong and encouraging tone for the year ahead. Building on the momentum for the second half of last year, we have seen sustained strength in our performance. Our strategic focus on brand premiumization continues to resonate with consumer across markets. In Q1, we delivered our highest ever quarterly volumes, net sales, and profitability. IMFL volumes grew by an impressive 37.5%, led by strong demand for our premium portfolio. A stable raw material environment and a favorable product mix supported healthy year-on-year margin expansion. We entered FY '26 with important brand milestones that further strengthened our premium portfolio. One of the key highlights was the launch of Morpheus Super Premium Whisky, which marks our foray into the fast-growing super-premium whisky segment. This is a high-margin category where we were not present. With this launch we are not only leveraging the equity of the Morpheus brand but also broadening our presence in the upper end of the whisky category. Initial response has been very positive with growing [indiscernible] and strong consumer feedback on both the product and its packaging. We are planning to launch in 10 states in the second half, which covers 70% of this industry. Another notable launch is The Spirit of Kashmyr, a luxury vodka that builds on our leadership in the vodka space. It addresses a clear gap in the market by introducing a premium Indian offering in a segment traditionally dominated by imported brands. Distilled with exceptional purity and backed by a compelling brand story, The Spirit of Kashmyr aspires to scale globally and position India on the world luxury vodka map. This launch reflects our continued ambition to build world-class homegrown brands with international appeal. Our broader premium portfolio continues to deliver strong results. Royal Ranthambore, operating in the bottle in India's Scotch category, has delivered an exceptional 90% growth this quarter. The brand continues to gain strong consumer acceptance with discerning whisky enthusiasts increasingly choosing it for its craftsmanship, rich blend profile and premium packaging. Magic Moments, our flagship vodka brand, which crossed 7 million cases last year, posted another solid quarter with 20% volume growth. After Dark Whisky entered a dynamic new phase in 2022 with the introduction of After Dark Blue, designed to resonate with a younger contemporary audience. Since then the brand has maintained its strong upward trajectory. This brand sold 1.9 million cases last year and is on track to double that volume in this fiscal. Our luxury and semi-luxury brands delivered nearly 50% year-on-year value growth during the quarter. We are on track to achieve our guidance of INR 500 crores revenue from luxury and semi-luxury brands in FY '26. These results are a testament to the strength of our strategy and the disciplined execution by our team. We remain sharply focused on driving profitable, sustainable growth through continued premiumization, deeper market penetration, innovation-led approach, and operational efficiency. The Indian alcobev industry is undergoing a structural shift from traditional consumption patterns to a more lifestyle-driven category. With rising affluence, evolving preference and increasing demand for elevated experiences, we see substantial long-term opportunity in the premium and luxury segments. At Radico Khaitan, we are well positioned to capitalize on this transformation. Given the strong growth momentum, we are poised to deliver 20% plus overall volume growth in FY '26 with robust contribution from the Prestige & Above category. This, coupled with enhanced profitability and a persistent focus on cash flow generation, will drive long-term value creation for our shareholders. With this, I would now like to hand over the call to our CFO for a detailed operational and financial review. Thank you, everyone, and over to you, Dilip.

Thank you, Abhishek. Thank you, everyone, for joining us on this call today. During quarter 1 of FY '26, we reported total IMFL volume of 9.72 million cases, representing growth of 38% on year-on-year basis. This is highest ever volume recorded by Radico Khaitan in a quarter. Prestige & Above category volume grew by 41%. In value terms the Prestige & Above category registered 43% growth. Non-IMFL revenue grew by 12% on year-on-year basis. Regular category volume, which were impacted due to certain state-specific industry-related issues and ongoing strategic rationalization of the portfolio, have now returned to sharp growth trajectory from quarter 3 of last year. This momentum is expected to sustain in next quarters also. We continue to see strong traction for our brand portfolio in Andhra Pradesh and have gained market share from 10% in first half of financial year '25 to over 28% in quarter 1 of current financial year, which is highest in the industry. Gross margin during the quarter was 43% as compared to 41% in quarter 1 of last year and 43.5% in quarter 4 of last year. Gross margin improved on year-on-year basis due to the ongoing premiumization in IMFL business, coupled with relatively stable raw material scenario. Gross margin remained broadly stable on a quarter-on-quarter basis due to higher bulk sales in this quarter. EBITDA margin expanded from 13% in quarter 1 to 15.3% of this quarter. Despite higher marketing spend, we have seen economies of scale benefits. We are optimistic that the pricing scenario for ENA and grain will remain stable going forward during financial year '26. We are on track to achieve our margin expansion guidance. Net debt reduced by INR 164 crores since March '25, mainly on account of profitability and working capital reduction. With limited CapEx going forward, we expect to be almost debt-free by financial year '27. Going forward, our focus will remain on driving profitable growth, enhancing cash flow generation and improving on working capital efficiency, all of which will contribute to continued debt reduction. With this, we'll now open the lines for Q&A.

[Operator Instructions] The first question comes from the line of Aditya Soman from CLSA.

Sir, 2 questions from me. Firstly, in terms of marketing spends, you indicated that marketing spends have gone up, which is to be expected when you're launching premium brands. But can you give us a sense of where these marketing spends are being spent in terms of obviously, in-store marketing, any social media activation or anything of that sort? And then secondly, could you elaborate if there's any sort of impact of any stocking up before the Maharashtra duty change or anything of that sort in this quarter's numbers? And just a broader question on that, if there will be any -- if you can quantify the impact or potential impact from Maharashtra on your numbers?

See, as far as the marketing spend goes, we have always maintained that our marketing spend is in the range of about 7% to 8% of our turnover. And that's been seen in the last couple of years also. So I think we'll be maintaining that. And as far as the marketing spend goes, our main focus on marketing is more on digital space. Second is on the shop visibility, on on-trade and also on lot of events. So basically, these are our basic marketing spends where we concentrate in terms of priority. So digital, on-trade events and these are the basic our marketing spends. The second question about Maharashtra. Maharashtra contributes only 4% to 5% of our volumes. And there has been no stocking in this quarter as far as our volume growth goes. So there is no effect on the stocking part. And with this Maharashtra, we don't expect much of this thing effect on our profitability going forward.

Understand. Very clear. And if I may just follow up on the marketing spends. So is there any shift in marketing now that you're -- as you mentioned, as you're focusing more on digital, is that a marked shift? And is that a big competitive advantage for you on shifting to using more digital platforms? Or do you see all the other marketers use that as well?

See, it all depends. See marketing is all relative. Sometimes if you want to market, you market in IPL, et cetera. So in Radico, we have always like last 7 years, we have outbeaten the industry. Like right now, we have done a huge promotion across all the 8 airports where we have taken positions for our luxury brands, where for months, we have taken like dedicated spaces showcasing India's luxury brands like [ whisky is ] going on Bombay, Delhi right now. So I think every company follows a different marketing strategy. But our thing is we think global at local. So our lot of marketing spend goes state specific because each culture, each state in India is different. South India is different, North is different. So we go as per the region.

The next question comes from the line of Dhiraj Mistry from ICICI Securities.

Yes. First of all, congratulations on very good set of numbers. And sir, my first question is regarding volume growth that we have seen very 40%-plus volume growth. If we adjust for, let's say, reopening of Andhra Pradesh or let's say North of India, what would be a normalized volume growth during the quarter?

So if we adjust apple-to-apple the Andhra Pradesh, then the volume growth in P&A category is upward of 15% -- 15% to 20% and overall volume growth is around 12%.

Got it. And I think this low base will continue till December quarter, if I'm not mistaken, right?

Yes. This base effect will be Q2 and Q3 partly.

Partly Q3 also. And second question is in terms of margin, now that non-IMFL business has been doing very well, what kind of margin we are witnessing in non-IMFL business right now? And is there any further scope of improvement of margin in that business?

Yes. So the point is in the quarter, the non-IMFL business as a total kitty is around 6.5% to 7%. And IMFL margins are upward of 18%. And we expect in going forward with the grain and other commodities showing some softening trend, so might improve in future those non- IMFL margin as well.

And plus also like if you see last year, my margins were 13.8%, for the quarter, it is 15.3%. So I think coming for the next 3 years, we expect easily until and unless something very drastically happens on the commodity side, easily a margin expansion of 125 to 150 basis points year-on-year for the next 3 years. So we come to the late teens.

Okay. So sir, your earlier guidance was somewhere around 100 basis points of margin expansion. Now you are increasing that to 125 to 150 basis points. Is that correct?

Yes, that is correct because our premium brands are doing exceptionally well, plus you've seen with the volume growth and with everything operating leverage comes into play because you don't need to increase so much of manpower. And we are seeing superb traction. And what is happening, like even if you see, we control 60% of the vodka market in the country. And globally, vodka is 28%, whereas in India, it will be only about 3.5% to 4%. So we are seeing a gradual shift happening to vodka, where definitely Radico is in the biggest advantage space, and vodka always gives you higher margins than any other product. So I think if God willing, everything goes well, and we don't experience any major shortages which happened last to last year, we feel that 125 to 150 basis points is easily possible.

Got it. And sir, last question is on Morpheus volume that we have launched. So as per my thing is that this category is very profitable in a way also in terms -- in a way it can drive very good volume growth. So what's the internal aspiration for this Morpheus Whisky? What kind of volume growth do we envisage in next 2 to 3 years' period of time? And which would be the key focus states for that brand?

So first of all, I must tell you that the segment itself, we see -- as of today, this is a 17 million cases plus segment. The growth rate is approximately 15%, a strong double-digit growth rate of this segment. All the key states like, say, for example, Karnataka, Maharashtra, Rajasthan, Haryana, Delhi, these are all big states, UP. These are all very big states for the segment. Having said this, like we said, we've launched it technically in the super-premium whisky segment, but here we were always unrepresented. This was the only segment we were unrepresented. And this is the first launch in this segment that we've done starting from UP. The response that we've seen, forget in terms of primary sales, the response that we've seen at the tertiary level, whichever outlet we have gone to, to say about 1,000-plus outlets, every shop has shown strong tertiary demand by the consumer. So the first feel is extremely positive, and we are very optimistic that we will see the same response across India. Now having said this, we must also reiterate that -- reemphasize the point that this has been launched as the most expensive super-premium whisky in terms of price positioning or consumer price. It is INR 150 more than the most expensive competitive brand in this segment. With this launch, Radico has made a foray into the largest contribution pool of the IMFL segment. The blend is unique. It's a mix of imported Scotch malts, the finest Indian grain spirits, and aged in bourbon barrels. We hope that this is a complete winner in the segment, and we are very optimistic that we will carve out a dominant position in the next couple of years for this brand. You would also know that Ranthambore was launched 3 years back at a price higher than the largest selling Scotch whisky. Today, it is growing at a rate between 90% to 100% year after year, and it's become a brand that is being demanded by the consumer in practically every corner of this country. Despite that, there are demands flowing in from overseas as well. So Ranthambore is a sure-shot winner that we see. Morpheus Whisky is something that is showing great traction. And Abhishek talked about The Spirit of Kashmyr. I think that's a brand to look out for in the luxury vodka segment, which was long dominated by international brands. This is a matter of pride for India to launch a product in this segment, and we feel we have ambitions to take this brand global.

No, very. well said, sir. Sir, just last question on this part that we don't have any capacity constraint in the luxury segment. We have enough capacity to cater the demand.

See, as far as the single malt goes, we have spent a lot of money. We have tripled our capacity. And I think as the liquid flows, we'll be able to cater to the demand. And if the demand is more, we'll keep investing in the single malt. As far as the other brand goes, we don't have any capacity constraint because we've done our CapEx of Sitapur, which is the largest plant of Asia. So I think capacity won't be a constraint for us.

Got it. Once again, congratulations on good set of numbers. Just one thing. What would be the due from Telangana market and that would be my last question.

Yes. What is the Telangana market? We could not understand your question, please.

So what is the balance amount due from the Telangana government's market?

So let me tell you, in Telangana, our overdues are roughly in the region of INR 90 crores, and we are the lowest in the industry. There has been a slow progress, but the good thing about Telangana is that whatever supplies we are making now in the recent times, we are getting our money on time. And I'm sure that Telangana government will very soon clear the balance as well.

The next question comes from the line of Harit Kapoor from Investec.

So my first question was on After Dark. I remember this being a fairly old brand in your portfolio now, while we had launched this along with another brand called Regal Talons and you were playing it -- you were doing the regional play here. But in the last 2 to 3 years, this brand seems to have really exploded in terms of growth. Could you just take us through as to what have been the variables to have driven this significant growth in this brand over the last, say, 2, 2.5 years? That would be very helpful. That's my first question.

So good question. We were expecting this to come. See, in fact, After Dark was a sleeping giant in our stable. And a couple of years back, we were always eyeing the semi-luxury, luxury segments, the premium segment. So we were working very hard on those segments because we wanted to earn profit for our shareholders. But what we have seen of late is that this has actually emerged as the largest segment of the Indian IMFL industry. It's 70 million cases industry, growing at about 15% to 16%. And we feel that there is a big opportunity because we are practically represented with our range of products in every -- with Morpheus Whisky now being launched, we are now represented in almost every category and segment of the IMFL industry. So one fine day, while we were looking at promoting luxury and semi-luxury, we thought we should not overlook this because we already had a brand. We repositioned it with excellent packaging, a change in the look and feel, with upgradation in the blend. And ever since then, the brand has not looked back. In the first year itself, we did 9 lakhs. In the second year, we grew by more than 100% to 1.9 million. And in the current year, FY '26, we hope to double our volumes very easily. The brand is showing great traction. It is in the segment, which is currently held by brands like IB and McDowell's, and I think it is emerging as a competitive force in this segment. We are very optimistic that we'll be a good player in this industry with this brand.

Just a follow-up. Is the aspirational now national for After Dark? Is it across markets? I just wanted to get an update on that.

So as far as we are concerned, After Dark is already available in 14 states. And now we are going to take it across 24 states in the next 6 months, we are going to launch it national, go hammer and tongs on this brand.

I want to add on the After Dark is when we repositioned it, repackaged it, re blended it, we started with selected states. But whichever state it has gone, the response is so good that now in the current fiscal, we'll take it all India. So the brand is showing a very fast movement.

The second question was on the state-wise regulation. So we've seen Maharashtra being negative for the industry. Andhra Pradesh, Uttar Pradesh over the last 6, 8 months actually positive. Just wanted to get a sense check on, are there any other states where the regulatory environment has been this side or that side over the last, say, quarter or so that might have kind of missed us because really all the news has been taken up by Maharashtra and UP and Andhra.

See, first of all, it's very important to state that UP and Andhra today are faring pretty well with their excise policies. It's giving an opportunity to every player operating in this country to be present in every segment and category. So the excise policies are extremely good and favorable to the industry, whether Indian or foreign players. Having said that, as far as Maharashtra is concerned, yes, we see that there is going to be an increase in the consumer price for the brands. But then we have always seen in the past that like what we saw in Karnataka, they experienced that the consumer price of their brands in Karnataka was the highest in the country. And then when they started seeing growth in adjoining states, then they realized that they need to rework on them, which they did. Now in Karnataka, premium brands have started growing and doing pretty well. We used to be only 4% of our premium portfolio in Karnataka last year. Today, our premium portfolio, the saliency is 15%. So as far as Maharashtra is concerned, we feel that it is too early to comment on what will be the outcome. But in this business, water finds its level. I think every state government doesn't want today to lose on the revenue. So I'm sure if it doesn't work, they will relook at the entire strategy of the policy. But we are hopeful that Radico will find a way to maneuver through the intricacies of this policy.

And also what happens, what we see like, like the Maharashtra if the MRP is too high, the material starts coming from the neighboring states. So in the end, what Amar rightly said, water will find its own level.

Couldn't agree more. The last question was on CapEx. So for this year, Dilipji, what is the kind of number that we're looking at for F '26 roughly?

So now our CapEx average run rate will be around INR 150 crores to INR 160 crores annually for next 2 years.

And is this largely maintenance or there is some addition as well here?

Yes, it is related to the brand and brand related and malt related.

[Operator Instructions] The next question comes from the line of Abhijeet Kundu from Antique Stockbroking.

Congrats on a really great set of numbers. Very strong outperformance. My question was one on what was the thought process behind your naming -- I mean, behind your super-premium whisky launch, the name of the whisky has been Morpheus. Morpheus was more about Morpheus Brandy. So what was the thought process behind naming the whisky as Morpheus? One was that. And secondly, in Maharashtra, we are not still very clear -- at least I am not still very clear about how the duty structure has been. Because what we are made to know is that in the upper prestige segment or super-premium segment, the tax increase has been lower as compared -- and it has been higher in the entry-level Prestige & Above and mid-level Prestige & Above. So just some color on that I wanted to get from you. These 2 are my questions.

So let me tell you what's happening -- what's been happening with the -- first, I'll answer the Maharashtra a bit of the question. See, the fact is that the changes have taken place which are drastic in terms of policy. But practically, most brands that sell in huge numbers are still thinking of pricing their products between INR 200 to INR 250 to the consumers. And this price band is not very unique. It's been there at some point of time, either in Maharashtra or in Karnataka or in any part of the country. So as I said, that, yes, the changes are drastic, but then we need to see it's too early as to how -- to comment as to how the market will react. But we are hopeful that the Maharashtra market is very sensitive because it's surrounded by states like, say, for example, Daman, Madhya Pradesh, Rajasthan, Goa. So if the policy doesn't work internally, the brands from other states are going to flow in, the government will lose revenue, and then they will definitely take corrective action. So as I said, the water will find its level. But today, what we see that most large-selling brands are trying to price them between INR 200 to INR 250 INR a nip which will work. Let's see what happens. Coming back to your first question, which is Morpheus name. See, first of all, it's important to say that Morpheus Brandy is the only product in the premium whisky segment of brandy, which enjoys a market share of 65%. The brand equity for this category is extremely strong. In fact, [ 6 years ] back, we decided to make brandy a national product. So we extended Morpheus to other parts of the country, to the North, West and East. Today we are the only national premium brandy in the IMFL category. And we are growing year after year. For 3 successive years we've sold more than 1.2 million cases. And the growth continues to be seen in our current year as well. So that's the kind of equity with all marketing, all activations that we've done for the Morpheus branding. We were deeply inspired with the brand positioning Dare to Dream. And that's what we wanted to extend to the Gen Z and the younger generation because that's a subject matter which is dear to the heart of all youngsters today. And Morpheus Whisky is positioned in that super-premium segment, which is now almost becoming the entry segment of all affluent consumers. So that was the inspiration we drew. And the brand positioning is Be Your Dream. With Morpheus, we said Dare to Dream. With Morpheus Whisky, we are saying Be Your Dream. So I think that's where it comes from. And the campaigns have worked out very effective for it. The initial response, as I said, is very encouraging. We are very hopeful that this is a serious challenger in the IMFL premium whisky segment in the times ahead.

Understood. And another thing, whether -- I don't know whether you would be able to comment on this or not. But what would be the value contribution of your luxury segment, including Royal Ranthambore, I mean, across the board, all your whisky and vodka offerings taken together, what could be the value contribution?

Yes. As we have guided in quarter 4 that last year from luxury segment, the contribution to the IMFL business was around 10%, which is roughly INR 350 crores, INR 360 crores. And this year we are going to cross more than INR 500 crores from luxury and semi-luxury.

And the value growth of semi-luxury and luxury is 50% right now in this quarter.

And the gross profit margin would be substantially higher as compared to obviously the lower segments, right, the P&A segment.

Much, much higher. Much, much higher. Most important point here is that most of our luxury and semi-luxury brands are still at their nascent stage. So the future seems to be very bright for these brands based on the traction that we are seeing.

Yes, because this could -- this 50% growth could go on for like the next few years, I mean, the kind of underlying demand which is there. And there is not much of serious competition, so to say. I mean there is but you have carved out a very strong product offering there and have outperformed. So all the best.

Actually, if I say that, I have always believed in one statement that to make the first million is tough. After that millions follow. The same thing in alcohol, like say, Royal Ranthambore, if you are targeting 0.5 million case. So when so many people are drinking, it becomes a brand and people want to drink the same brand. Same thing has happened with Jaisalmer. Rampur has not touched the surface only. So I think luxury and semi -- which I'm super confident is The Spirit of Kashmyr. And there are 1, 2 more brands which are in the offering in the near term. So I think the luxury, semi-luxury story has just begun.

And the innovation pipeline is very strong at Radico. So a lot of products are being worked upon.

That's great to hear. And what has been the response to Sangam? Sangam, I believe, would be in the segment of -- I mean, in the product offering of Monkey Shoulders. Is that right to say? I mean, because it is a confluence of many malts. So would that be the product offering?

Yes, yes, you're right. The price of Sangam would be about INR 5,000, and the response is fantastic.

It's available in 13 states. It's showing great traction. The response is very good from the consumer side. There is quite a bit of repeat demand. So we feel that the brand is poised to grow in the years ahead.

The next question comes from the line of Pankaj Kumar from Kotak Securities.

Congrats on a very good set of numbers. Sir, question is on the non-IMFL category. In this quarter, we have seen this is more than INR 400 crores kind of contribution. So how do you see with that 12% growth? And how do you see this as a segment contributing in the coming quarters and year ahead?

So the present this thing is around between INR 400 crores to INR 420 crores. And in the country liquor and all that, we expect 4%, 5% growth. And the other, the bulk spirit, which will get converted into the branded business slowly and gradually in 3, 4 years. So we expect single-digit growth in the non-IMFL from '26 onwards.

Sir, on this working capital that has basically improved in this quarter. So what led to that change? Is it largely driven by UP? And what has changed there?

Yes. So working capital, one is, it is cyclical. We build the stocks in the season and all that, which sometime in the next 6 months get liquidated gradually. Secondly, yes, you are right that UP, which is now the excise duty has now been passed on to the wholesaler. So that is also gradually reducing the working capital stakes into that.

So that has definitely resulted in the reduction of the working capital. But in any case, across the country, we are exercising huge discipline while the sales are growing...

I think in the liquor industry, the credit norms of Radico would be the stringent type, would be the most stringent.

And sir, my last question, as you stated that there are 1 or 2 more brands which are there in the offing. So which category you believe where we are not into and we need to add these and what is the time frame for these launches?

See, in terms of the new brands, we are now with Morpheus Brandy as well available across on all segments. So we are working on how we can further strengthen our participation and offerings in whether the brown spirit or white spirit. So we're working on all of this. And in fact, all our products have been internationally also very well received. I'll be happy to share that Rampur is the official partner of MICHELIN Guide for Dubai and Abu Dhabi as well. So it shows the kind of recognition and acknowledgment that all the international players are putting on Rampur and Indian Single malt.

The next question comes from the line of [ Anuj ] from Antique Stockbroking.

Congratulations on a great set of numbers. Two questions from my side. Earlier in the call, you had mentioned optimism in the vodka segment. Has there been any specific market indicators which has encouraged the expansion in the premium range with The Spirit of Kashmyr? Secondly, on the regular segment, in the previous quarter, you had mentioned that we had achieved 23% market share in Andhra Pradesh. How has that moved in this quarter? And how are we seeing this trend for the per case realization for the regular segment shaping up in the coming quarters?

See, to answer your first question, I think there would be no brand anywhere in the world which commands a market share of 58% to 60% in the vodka segment, which is magic. And now The Spirit of Kashmyr, as Amar was saying earlier, it is going to compete with the imported multinational brands. And I think once you see the packaging, and more than the packaging, the way -- if you taste the blend, which I always tell is the heart of any of the product, I think this blend would be one of the best blends in the world. And we are very confident that with the pricing what we have taken, it should make a big impact on the industry. Right now, we have started with the state of UP. And gradually, again, as we have done for Morpheus, in the current year, we will take it to 10 cities -- 10 states. And as far as Andhra Pradesh goes, I think Andhra Pradesh, we are growing stronger and stronger. So in the current quarter, our market share was 28% and the brands are doing exceptionally well. So to have 28% is a big achievement of any -- it's highest in the industry. We are clearly the #1. So that is what we believe that hopefully, Delhi -- then the most awaited after the election is Bihar. They open up. Tamil Nadu opens up. So I think like how Andhra has opened up, we are quite hopeful Bihar, if the government changes, it becomes wet. And Delhi, definitely, the policy has to change where, again, it can be a very big movement for all the liquor companies, especially the national companies, especially for Radico. And hopefully, Tamil Nadu also opens up. So these 3 are the positives which can change the game like Andhra.

As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you, and over to you, sir.

So thank you, everyone, for joining us. Moving forward, we will continue to deliver a strong Prestige & Above category volume growth, driven by our diverse brand portfolio. Secondly, we will further develop our luxury brand portfolio, which we see as a major contributor to our profitability. Furthermore, we are focused on ensuring that our [ capacities ] operate as efficiently as possible. This will enable us to generate cash, repay debt, and return cash to the shareholders. We look forward to interacting with you on our next earnings call. In the meanwhile, if you have any queries, please follow up or feel free to write to us. Thanks a lot.

Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.