Radico Khaitan Limited (RADICO.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Radico Khaitan Limited Q2 FY '26 Earnings Conference Call hosted by DAM Capital Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Manyal. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. We would like to thank Radico Khaitan's management team for providing DAM Capital with the opportunity to host Q2 FY '26 earnings call. We have with us senior leadership team from Radico Khaitan, Mr. Abhishek Khaitan, Managing Director; Mr. Amar Sinha, Chief Operating Officer; Mr. Dilip Banthiya, Chief Financial Officer; 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 Q2 FY '26 results conference call. Second quarter sustained the strong growth momentum we have seen over recent quarters, reaffirming the success of our premiumization strategy and disciplined execution. Building on a solid first quarter, our brands continue to witness robust consumer traction across all markets, delivering an impressive 37.8% volume growth. With the Prestige & Above segment growing by 21.7%, recording highest ever quarterly P&A volume. Magic Moments Vodka maintained its strong growth trajectory with nearly 20% volume growth, achieving sales of around 2 million cases during the quarter. Strengthening the Magic Moments portfolio, we introduced Jamun SpicyMint under the flavors of India range. Following the overwhelming response to Alphonso Mango and Thandaai, this new variant further reinforces the brand's commitment to promoting India's vibrant spirit through bold homegrown innovation. After that Whiskey continued to deliver remarkable performance, recording 115% growth year-on-year in the first half. Last year, it did volume of 1.9 million cases and in the first half, it has crossed 1.5 million cases. The brand has expanded its footprint to 18 states, reinforcing its national presence and bringing the brand closer to consumers across the country. With sustained marketing investments, we expect this momentum to continue in the coming quarters. Royal Ranthambore Whiskey also delivered an outstanding performance with 67% growth in Q2, driven by strong demand across both civil and CSD channels. The brand achieved a 10% market share in the CSD segment during the September 2025, underscoring its growing acceptance and strong consumer resonance. Morpheus Super Premium Whiskey is now available in 3 states and initial response to the brand has been very encouraging. Though we have priced at higher than peers brands in the same segment. We plan to take it to 10 states during FY '26. Our new age luxury vodka, the Spirit of Kashmyr, India's first homegrown brand in this category continues to gain traction. desire to meet the rising demand for culturally rooted premium experiences, it is now available in 7 states, with early consumer feedback being extremely encouraging. In the luxury segment, Rampur Indian Single Malt, Sangam World Malt and Jaisalmer Indian Craft Gin continues to deliver robust performances. This is supported by our focused efforts to expand presence across both off-trade and on-trade channels. While the global trade environment presented short-term challenges for exports, our robust domestic portfolio continues to demonstrate the strength and agility of our business model. As Indian consumer aspirations evolve and regulatory reform advances, we are well positioned to capitalize on the opportunities ahead. Our innovation-led approach balanced portfolio and sharp focus on premiumization continue to lay the foundation for sustainable growth and value creation. Looking ahead, we remain confident of delivering strong double-digit growth in the Prestige & Above category, enhanced profitability and a continuous focus on cash flow generation, all contributing to long-term value for our shareholders. With that, I would now like to hand over the call to our CFO, Dilip Banthiya, for a detailed review of our operational and financial performance. Thank you. Over to you, Dilip.

Thank you, Abhishek. Thank you, everyone, for joining us on this call today. During quarter 2 of FY '26, we delivered a strong all-around performance with total IMFL volume of 9.34 million cases reflecting a 38% year-on-year growth. This is clear validation of the strength and balance of our portfolio. Prestige & Above category continued steady upward trajectory, recording a 22% volume growth and 24% value growth with realization improving by 2.1% on a year-on-year basis. Our regular category volume grew sharply by 80% in the quarter. After 9 quarters of degrowth, this segment returned to a strong growth path starting from quarter 3 of last year, and the momentum has continued in the first half of FY '26. The change in route to market in Andhra Pradesh was a key driver of this rebound, supported by our agile execution and strengthened brand availability. Our performance in Andhra Pradesh has been particularly encouraging with our market share increasing from 10% in first half of last year to approximately 30% in quarter 2 of '26, making us the leading player in the state. On the profitability front, gross margin stood at 43.6%, flat on Y-o-Y basis and up from 43% in quarter 1 of financial year '26. The stability in margin reflects a benign raw material environment and our disciplined cost management even as the mix tilted towards the regular segment this quarter. We remain optimistic that ENA and grain prices will stay stable to favorable for the rest of financial year '26, providing continued margin support. Our A&SP investment were at 6.1% of IMFL revenue compared to 5.6% in first quarter of FY '25. While quarterly variations are expected due to the campaign timing, we continue to guide for NSP spending in the range of 6% to 8% to sustain strong brand visibility and growth. EBITDA margin expanded by 126 basis points on a year-on-year basis to 15.8%, reflecting operating leverage benefits. Turning to the balance sheet. Net debt reduced by INR 146 crores since March '25, driven by improved profitability and tighter working capital management. The sequential increase versus June '25 was mainly on account of dividend payout and acquisition of stake in D'YAVOL Spirits spreadsheet. Our balance sheet remains strong. We are well on the track to become debt-free by FY '27. With this, we'll now open the lines for questions. Thank you.

[Operator Instructions ] The first question is from the line of Kapoor from Investec.

So just a couple of questions from my end. So on the P&A side, again, last couple of quarters, the trajectory has actually accelerated. So if you can just talk about in the first half this year, where the -- which are the brands which have kind of driven this growth, 1H growth, which are -- because if you look at in absolute volumes also, you've seen a dramatic jump up, 40% and 22%. And Andhra is not a very large P&A market. So that -- it's really happening from core markets, core brands. If you could just talk a little bit about which are the key brands that are driving this upward? That's my first question.

Yes. So first of all, what is most important is that the P&A segment is largely being driven by brands like Magic Moments, which is seeing a huge growth. It's growing in at about 20%. And the best part about the Magic Moments family is that in FY '24, we did 6 million. FY '25, we did 7 million. And this year, the rate at which it is growing, we feel that we will be adding another 1 million. So our vision is over the next 3 years to see Magic come up to 10 million cases, one. Two, the Royal Ranthambore brand has grown by 67% plus in Q2, which is a huge growth. And this brand, despite its premium positioning were the largest selling scotch whiskey has gained traction and acceptance by the consumers in India and quite a few markets overseas as well. So Royal Ranthambore, Magic Moments and then After Dark. After Dark is a brand which like Abhishek mentioned, in FY '25, we did 1.9 million cases. And this year, we have already in the first half done 1.5 million cases. This is a huge segment of 75 million cases, and our ambition to take this forward, get dominant market share continues. So these are 3 most important brands that are driving the growth. Over and above all this, -- this is all going to be fueled by the fact that we've launched luxury products in the last -- in fact, 6 new brands have been launched in the last -- in Q2, which is Morpheus Whisky, the Spirit of Kashmyr 2 variants, Natural and Saffron and then flavors of India in the Magic Moments category, which is Mango, Thandaai and Jamun. So 6 new products have been launched in Q2, which will fuel this growth that is being already reflected in the results. And coupled with all this, we have also launched 8 new SKUs in the Prestige upwards, semi-luxury and luxury, which are the small SKUs of Rampur Double Cask, Sangam World Malt, Spirit of Victory, Magic Moments, Pink Vodka and After Dark Blue celebration pack and pocket pack. These are all small packs that are going to fuel the consumer drive of our Prestige & Above brands. And this is going to, therefore, reflect in the times ahead in terms of growth.

Great. Fantastic. And the second question was on the super-premium portfolio. I think last year, you mentioned INR 340 crore number for the full year. And this year, you have had a target of INR 500 crores. So I just wanted to know, obviously, H2 is typically higher for the business overall, but you think you're on track to hit this INR 500 crore kind of target?

All like, as Amar said, like our Royal Ranthambore, Jaisalmer, Sangam, all brands are growing. And I think we are well in target to achieve the INR 500 crores.

The next question is from the line of Manoj from Antique Stock Broking.

Congratulations on a great set of numbers. Just one question from my side. During 1Q, the management had highlighted there's been an improvement in working capital on account of UP's reforms. So when I was looking at the 1H balance sheet, that translates to roughly a 15 to 20 days improvement. So we see further improvement of the working capital through…

So working capital has improved, as you said that in UP, it has -- we have unlocked value because of the duty being now funded by the wholesaler. But it's a cyclical thing, sometimes the stocking of raw material happens sometimes this thing. As I said that first half, the debt reduction has been lower than what it was in Q1 of this year, mainly on account of 2 large payments, which is -- one is investment and another is dividend. And I see that working capital management, we are very, very conscious about and we allocate he resources as per the requirement of the market. So we will continue to reduce our debt. In H2 also, you will see further deceleration of our loans. So we are confident about it.

I was more specifically on the working capital, could you quantify the benefit that is coming from the UP's reform?

Benefit out of working capital? Yes, the benefit is reflected in the interest. The point is the working -- as we said, we can't talk quarter-on-quarter basis, but definitely by next quarter and next year with this company will be debt-free with the free cash flow.

The next question is from the line of Abneesh Roy from Nuvama.

Congratulations on very good numbers. My first question is on Andhra. So firstly, ex of Andhra, how has been the growth? Second, other players are also talking very positively on the Andhra market and first year has been great. If you could talk about industry growth rate in second year, do you expect again strong growth even in second year, given first year generally, it's opening up. So obviously, you are starting from almost negligible base. And a related question is, you said you have claimed leadership position in Andhra. So specific things, what has helped in that market?

So first of all, I want to -- which we have earlier also mentioned. A lot of states in India are contemplating following the UP-excise model. And what does it mean? It means retail should be free and left to the consumer to choose what he wants to buy. The great thing that has been done by the Andhra government is that they've opened up the retail to private. They've made brands available at the shelf and the consumer is free to choose products at different price points. Radico has obviously gained from this policy, like we are strong in UP, we have also become strong in Andhra Pradesh, primarily because of availability of -- as a national company, a lot of marketing activities. This growth that has happened in Andhra is likely to sustain in the year ahead as well because we are aware that the government is progressively looking at how to improve upon the existing policy. So we feel that this growth will continue and our brands will continue to flourish more so in the premium segments.

Sure. Second is your growth has been extremely commendable. You have been extremely successful in new launches, new brands. Specific question is in terms of overall market, white spirits seems to be growing faster. So is there any formal study that the youth and the women, they are taking more towards the white spirits. And within white spirits, I'm sure you must have gained share given such a strong performance. And in the overall spirits also, if you could discuss white spirits, how much is the gain in market share in the last 2 years?

Okay. This is a question that I would have loved somebody to ask. First of all, it's very important for us to mention that just about 3 years back, the white spirits, vodka market was less than 2% of the IMFL industry. With all the activations, all the marketing that we've done around white spirits, today, it is in excess of 4% of the total IMFL spirits market. So that's one. Two, Magic Moments has achieved an incredible market share of 85% in the white spirits market. We have continued to grow this market, continue our marketing initiatives, smaller brands have left the space. And the Gen Z, especially have now taken to Magic Moments as an all-time drink and that means even the female clientele is also joining this drink. So Magic Moments is the brand of the future in white spirits, and we continue to dominate it with a formidable market share of 85%. We will continue to upgrade the offerings in the Magic Moments series like we have done with the flavors of India.

Sure. Last quick question. Now coming to a difficult state for the industry. So Maharashtra, what we have picked up and the beer company confirmed this, that there is a double-digit volume growth for the beer and similar mid-teens kind of a decline for the spirits industry. So if you could talk about Maharashtra for the industry and for you, how things have been? And any update on the Maharashtra liquor, any policy development for that?

So see, Maharashtra, you're right that the spirits industry has actually taken a beating in the last 3, 4 months, primarily because the consumer price of the brands have shifted upwards by INR 80 to INR 100 a bottle, the small-size bottles. Now having said that, whenever there is such a change in the consumer price, the consumer takes its own time to settle with the price and the choice of brands. It is too early for us to comment on the fate of the Maharashtra alcohol space. I think we need at least 2, 3 months more for the policy to settle down and which then the brand will find its space. See, the industry in Maharashtra has declined by 25%. And our -- we've also degrown in Maharashtra by about 20%. That's right. So industry has declined by 25%, we have degrown by 20%.

Understood. I had earlier asked except Andhra, what would be your growth? Did you give that number?

So it is double digit, more than double digit, except Andhra.

The next question is from the line of from Yash Sonthaliya from Edelweiss Public Alt.

Congratulations for a good set of numbers. First question is related to the glass bottling expense. So basically, like we all know, it has grown a lot in 2025 because of the industry reasons. But what is our understanding some of the capacities are coming back in the industries and things are expected to normalize. So I wanted your sense on the same?

See, the glass capacity in India is actually more than the demand as of now because there are some of the larger players whose capacities were not being used fully. Right now, the glass prices, glass bottle prices have also remained stable. And with more capacities coming into play, I think the industry is going to see favorable position as far as price and demand is concerned.

So are we expecting our cost to decline or remain maintained from here on?

So we are at this point of time, not taking into consideration. However, as Amar said, it is a commodity. So it is a demand and supply. So once the supply increases with the large players increasing their capacity utilization should be an impact on softer side.

Understood. And just wanted clarity, like you were mentioning APV used to have 10% market share. What is it right now? Sorry, I was not able to hear it clearly.

It's approximately 30% in H1.

The next question is from the line of from [ Rehan Syed from Trinetra Asset Managers.]

So like my majority of questions have been answered so so I'm left with only one question regarding your Sitapur distillery utilization side. So, what I mean, with the Sitapur display now for new upgrades. So what is the current utilization level and how is this facility becoming contributing to our gross margin? Improvement or cost efficiency in the premium segment, or like, if we are -- if we like, we are expecting some margin for, like, coming quarters [indiscernible]?

So first of all as at the time of taking this decision of putting a greenfield project at Sitapur, we said that it is our strategic investment. Since we are growing 20% plus in our P&A portfolio, the alcohol being used in that is mostly the grain-based. And in most of our products at the top end of the product, we use our own grain. So this grain requirement for branded business was the compelling reason for putting at Sitapur distillery. And secondly, malt maturation and all that is also part of it, which is our main focus area for future. Sitapur distillery is completely stabilized. We are operating the distillery at 95% of the capacity and it's running well. It is giving -- since it is a backward integrated for our branded business, hence it is helping us to grow our branded business. As you've seen in first half, our branded business have grown by 38%. We continue to see an upward moment in our branded business. So in 3, 4 years' time, I think we will be fully utilizing the Sitapur capacity for our own branded business. So I think it is a very, very valuable investment and strategic investment by us.

Okay. Any margin guidance you have to given?

Pardon?

Margin guidance...

You're not audible yet.

I'm asking any margin guidance you have to put here.

The margin guidance has been -- we've already guided that in the current fiscal, we should see 150 basis point increase in the margin. And in the next 2 years, we expect the margin to increase by 125 basis points year-on-year, thereby we reach late teens after 2 years.

[Operator Instructions] The next question is from the line of Sanjay Manyal from DAM Capital.

Just a few questions, specifically on the ENA part. Given the fact such a high growth has been taking place in the volumes now, you think that we would require one more round of CapEx if we continue to maintain the entire ENA requirement captive? And if yes, then which major states you would see the ENA requirement would be higher, so you might set up capacity over there?

So actually, we did this CapEx on our distillation cap after over a decade. And we had this 350 kiloliter plant 400, which is running this thing installed at 350. The point is that we don't require any more CapEx for our distillation with another 5, 6 years. So we can't -- we don't think and it is not on our drawing board.

Right, sir. And what kind of benefit we get from this CapEx versus a player who does not have the captive requirement. I believe now the availability of grains, whether it is broken rice or for that matter, other maize and all that for ethanol specifically requirement is high. So I'm sure the cost for broken rice and the other major raw material is quite low. So what's your outlook on both these things?

See, as far as the advantage of capacity like the Sitapur the most important objective of setting Sitapur is for our premium brands because we source all the spirit of our premium brands from Rampur, Sitapur and RNV. So that gives -- that is why you see the Radico's P&A growth is very high. So that is, I think, one of the most strategic advantage for us. And definitely, like I think build versus own, it would be a margin of about...

INR 5, INR 6 at this point.

INR 6, INR 7 a liter.

At this point of time. And if grain prices softer further, it can optimally be at INR 8 to INR 9.

Right, sir. And lastly, sir, on our luxury portfolio, you have guided earlier that we would be able to do INR 500 crores kind of revenue this year. The kind of growth we are witnessing, would you like to give some number for next year? Or for that matter, if you also can elaborate a bit, which are the major states or sort of cities where we are witnessing the very high growth in the luxury portfolio?

If you see our -- first of all, we are quite confident that we should achieve the INR 500 crore figure in this year from last year, it was INR 340 crores and INR 500 crores this year. So once we achieve the INR 500 crores, then we'll think about our next target. So our first aim was to touch INR 500 and actually the luxury portfolio is growing all over, starting Jaisalmer, Indian Craft Gin is growing in every state. It's having a good growth. And even our Sangam World Malt has started growing from a small base and it started -- now we spread it across many geographies. Plus as Amar said earlier, what we've done is we have taken out the smaller SKUs for both Rampur, Sangam, and Jaisalmer, which is fueling their growth. And Royal Ranthambore, I think is showing an exceptional growth trajectory and it is the only Indian whisky, which is priced even INR 100 higher than the bottled in India scotch, and that has seen a growth of 67% and that growth is coming from every states, so it is pan-India.

The next question is from the line of Aditya Soman from CLSA.

Sir, 2 questions. Firstly, on the P&A brands, you indicated, obviously, Magic Moments, After Dark and Royal Ranthambore and Morpheus doing very well. Can you give us a sense of what the price index for each of these would be? So let's say, I'm assuming Magic Moments to be INR 100, how does that price index play out at a broad level or at a company realization level? I understand it will be different state by state. And secondly, in terms of the revenue contribution of each of these brands or volume of each of these brands, if you can give a sense last quarter, if I remember, you mentioned 250,000 cases for Royal Ranthambore doubling. So can we again get a sense of the scale?

So as far as the price index is concerned, actually, the -- it starts with the After Dark, which is the deluxe category. If it's 100, then you see the luxuries are 50x to 100x. And Royal Ranthambore will be 25x, 30x of the contribution level. So basically, the price index is from our point of view because state to state have different excise structures and system, but our contribution, we can have that metric. And what is the second question?

And the second question was just the revenue or volume salience, which are way of these brands. So after Dark, you have mentioned...

We actually have a bouquet of brands, where we disclose that the P&A category, which is the Deluxe & Above constitute around 44% of our volume and 68% of our value in the branded business. That has a composite of all Magic Moment, Morpheus, luxury, semi-luxury and all these portfolio.

Understand. And can you give us any sense of what the scale of, let's say, something like Royal Ranthambore would be given that, I mean, that while the absolute volume is obviously much smaller, it is a big contributor to revenue already?

This is something around...

Luxury is close to 9% to 10% of our total revenue and Royal Ranthambore is a reasonable part of that and continues to grow at a very, very fast pace.

The next question is from the line of Kaustubh Pawaskar from ICICI Direct.

Sir, congrats for the good set of numbers. Sir, most of my questions have been answered. I have one question on your regular category. So for last 3 quarters, we have been saying this category has been delivering around 5 million to 5.4 million cases kind of a volume and which has improved from around 2 million to 3 million cases, which were in the earlier quarters. So should we expect this particular segment volumes to stabilize at around 5 million cases. So quarter 3, most of the stabilization would happen. And from there, you should expect a regular kind of a growth in this segment of around 7% to 8%, which you withdraw earlier.

So yes, the impact of the Andhra Pradesh, which has come in the first half, but the momentum is continuing. I think we -- as we guided that this year, we will be growing 20% plus in the H2 also on the P&A category and still we are confident to deliver double-digit growth on our in spite of a base which is equal in H2 in the regular category as well. Overall growth has already been also guided by us that this year, we are going to grow 20% plus on the overall volume, including P&A and regular. So I think the growth momentum continues there. Consistency is there...

Yes. From the Andhra Pradesh point of view, just wanted to understand that whatever benefit because of the change in route-to-market strategy would be there in FY '26, from FY '27, it will be a normalized growth in category. Is it fair to assume?

Yes, you're right. Since the policy change happened in the second half of last year when we had 10% market share. Today, we have 30% market share. So while in the second half base normalizes, we will still have the gain of the market share. And next year onwards, it will be a normal growth that we had earlier guided.

Sure, sir. And sir, my second question is on the market share itself. So in Andhra Pradesh, this is exceptional mainly because of the fact that there was a change in the policy. But in some of the other states where you have a strong, you know, base how the market share is shaping up in the states? Because since you have launched a lot of products in most of the categories or under the various segments, are this helping you to gain market share in the states where you already have a strong foots?

So let me tell you, overall market share of Radico in the alcobev space is on the increase. We've grown by almost 200 basis points primarily because of our premiumization drive. And this growth is broad-based across states, geographies. So I think as the premium brands and the luxury brands continue to strengthen, the market shares will also see an improvement.

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

Most of my questions have been answered. Sir, just one question on this non-IMFL revenue we have seen traction in the last 2 quarters. And of course, there is a bulk alcohol sale. So do we see this kind of trend continuing in the coming quarters.

Non-IFL it constitutes 2 major part. One is the country liquor/UPML and another is bulk retail sales. So sometimes because of the cyclicality of this thing and stocking, the sales of the bulk spit in the quarter 2 -- quarter can change. However, we have guided that our non-IMFL sales is going to be remaining in a range of INR 400 crores to INR 425 crores per quarter. At the same time, in the CL also, though the brand -- but still our brands are having a good franchise, and there are industry is growing 3% to 4%, whereas we are growing 12%, 13%. So that there also if the industry grows to 8%, 9% and all that, we will continue to have double-digit growth.

Sir, my second last question is that, we have seen the RTM benefit from UP. So going ahead do we see similar kind of opportunity from any other states where probably any change in RTM will have this kind of growth at [indiscernible] any comment on that?

See, I think UP has shown the way to most of the states that how to increase the revenues to make the policy very easy and accessible. So I think the 2 major states which can see these changes would be Delhi for sure. And Bihar, we are all hoping that it should open up after the election. So I think these 2 would be game changing states for us and for the industries.

The next question is from the line of Kunal Shah from Jefferies.

Excellent numbers I must say. My first question is just wanted to get an industry context on Bihar, right? While there are expectations of things opening up possibly, can you give us a sense of how big the market used to be, let's say, 7, 8 years back from an IMFL standpoint? And what would have been your market share at that point in time? So just size us -- for us to size up the opportunity if that happens?

See, I think 10 years back, I think Bihar would be about 10 million to 12 million cases market. It's a large market. And also right now, like if you see Bihar emulates what is being done in Uttar Pradesh. So I think it can be a very big opportunity once Bihar opens up. And Bihar traditionally has been a huge consumer of vodka. So I think once it opens up, it will be a very interesting market.

Understood. Understood. And any sense which you can give of how big would your business have been back in the day, if possible?

So we were relatively large in Bihar.

Understood.

And that time, we did not have like all our premium portfolio, but Magic and 8PM used to sell a lot.

Understood. Understood. That's very clear. The second question is, so one price point or let's say, segment within whisky, where I think there's a large opportunity is this entire Royal Stag, Royal Challenge, where you have 8PM Premium. That brand hasn't done much in the last few years in our understanding. So any thoughts on what you can do here or how do you plan to play this price point specifically?

So the Royal Stag segment is pretty large. It's about 55 million, 60 million cases segment. In fact, 8PM Black has been -- was affected because of route to market and excise policy changes in a few states like Jharkhand, Assam and AP earlier. But now we see the brand growing once again. And we are very hopeful that this brand with the new variants that are going to be launched in the same category will fuel the growth in the years ahead. We are very hopeful of this segment.

Understood. Understood. And the last question was on the luxury portfolio. So given that you had added quite a bit of capacity on the malt side 5 years ago, you'll have quite a bit of mature liquid, which will flow in the coming years. So any plans on, let's say, what do you -- do you think Rampur would be enough to absorb all of it? Or how do you think of using that supply to ramp-up.

So we have a plan to address the malt, and Rampur definitely is growing, but there will be more offerings which will be coming very soon in the single malt category.

The next question is from the line of Abhishek Gulati from [indiscernible] Wealth.

So my first question is, how is the ready-to-drink segment doing for us? And how much it accounts for our revenue? And overall, how this trend is shaping up in India?

So let us say that we test marketed the ready-to-drink segment with Magic Moments Vodka Cocktail in about 2, 3 states. We got a good response. But then what we observed was that the traction for Magic Moments vodka among the Gen Zs was so high that we felt there could have been a slip in the volumes with vodka cocktail and the vodka brand. So we prefer to taper it off and lie dormant right now.

Okay. And overall, the demand of those are like a bit growing in India. So far, I have read the growth of that category. What's your view on it?

See, as of now, what our views are very clear, hands are absolutely full with all our premium portfolio. And in the RTT, your margins are not high because you do not have that price elasticity. So I think what we are addressing now the luxury segment, et cetera, our focus of Radico is there on those segments.

Understood. And are we revising our 20% volume guidance for the full year as we haven't meet superb growth in this quarter. So are we considering to revise it?

See, as we say, we don't want to revise the guidance, but we are very, very sure of surpassing 20%.

Okay. Just last question, if I can ask. Like in the PPT that you have mentioned the upcoming premium brands. So what are in the pipeline for like that would be margin accretive as well?

See, we have plans of like, as I said, the single malt is there. Then also we'll be entering into the tequila in our joint venture. So there are a lot of -- these are the things which are in the pipeline, plus also geographical thing of our luxury brands.

The next question is from the line of Anjali Bajaj from [ Naredi Investment.]

Congratulations for good set of numbers. My first question is given the extraordinary surge in regular and other volume primarily attributed to shift in group to market in Andhra, how does management assess the sustainability of this high volume growth rate in the regular assessment segment for the second half of the financial year '26?

So we have just mentioned or answered to one of the earlier participants that we had a 10% market share in Andhra and last year and today, we have a 30%. So even though the base normalizes, we will continue to see the benefits of higher market share. So the growth in regular will continue to be strong in second half, maybe not as much as we saw in first half, but it will be still very strong.

Due to time constraints, that was the last question. I now hand the conference over to the management for the closing comments. Over to you, sir.

So as we move forward, our focus remains on accelerating the premium and luxury growth while driving greater efficiency across operations with disciplined capital allocation and prudent financial management. We are well positioned to strengthen our profitability, generate free cash flow and create enduring value for our shareholders. Thanks for joining us on call today, and we look forward to connecting with you again next quarter. Thank you.

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