Radico Khaitan’s selling & distribution spends jump 46% in Q2; A&SP to stay at 6-8% of revenue

Liquor manufacturer Radico Khaitan on Wednesday announced its Q2 FY2026 earnings, reporting a strong 73% year-on-year jump in net profit alongside higher selling and distribution expenses.

The Indian Made Foreign Liquor (IMFL) maker posted a net profit of Rs 139.5 crore for the quarter ended September 30, 2025, compared to Rs 80.6 crore in the same period last year. EBITDA rose 45.4% YoY to Rs 236 crore.

Selling and distribution expenses, which include costs related to marketing, selling and product delivery, increased sharply from Rs 105.5 crore in Q2 FY25 to Rs 154.2 crore in Q2 FY26.

The company said its strategy is to continue making prudent marketing investments across core brands and new launches to sustain growth and market share.

During Q2 FY26, A&SP (advertising and sales promotion) accounted for 6.1% of IMFL sales, compared to 5.6% in Q2 FY25. The company expects A&SP spending to remain in the 6–8% range of IMFL revenues going forward to drive sales momentum.

Radico Khaitan’s total income rose 29.4% YoY to Rs 5,059 crore.

The company — which has brands such as Kashmyr and Rampur Whisky — recorded a 33.8% rise in revenue from operations. Total IMFL volumes grew 37.8%, while Prestige & Above category volumes were up 21.7%. Changes in the route-to-market in Andhra Pradesh contributed significantly to regular volume growth, the company said.

Chairman & Managing Director Dr. Lalit Khaitan attributed the strong performance to a stable raw material environment, product premiumisation and operating leverage.

Managing Director Abhishek Khaitan added that despite short-term export challenges due to US tariffs, strong domestic performance, continued brand investments, product innovation and distribution expansion position the company for “accelerated, high-quality growth” in India and international markets.