Are Radico Khaitan Ltd. latest results good or bad?

Radico Khaitan Ltd. has reported a robust performance for the quarter ended December 2025, showcasing significant operational strength. The company achieved a net profit of ₹154.93 crores, reflecting a year-on-year growth of 62.25%. This growth is supported by a notable revenue increase of 19.51%, with net sales reaching ₹1,546.75 crores, marking the highest quarterly revenue in the company's history. Sequentially, revenue also demonstrated sustained momentum, with a 3.54% increase from the previous quarter.
The operating margin improved to 17.27%, up 306 basis points from the same quarter last year, indicating effective cost management and a shift towards higher-margin premium products. The gross profit margin also expanded to 15.76%, up from 12.79% year-on-year, further underscoring the company's operational efficiency.

In terms of capital efficiency, the Return on Capital Employed (ROCE) reached 19.28% for the first half of FY26, the highest in recent years, reflecting improved asset utilization. The balance sheet remains strong, with a debt-to-equity ratio of 0.21 times, indicating prudent financial management and providing room for future growth investments.

Overall, Radico Khaitan's results highlight its successful premiumisation strategy and operational excellence, enabling it to outperform the broader beverages sector, which has faced challenges. The company saw an adjustment in its evaluation, reflecting the positive operational trends and strong financial metrics.