Radico Khaitan Limited (NSE: RADICO) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Abhishek Khaitan — Managing Director
Dilip Banthiya — Chief Financial Officer
Analysts:
Unidentified Participant
Sanjay Manyal — Analyst
Aditya Soman — Analyst
Dhiraj Mistry — Analyst
Harit Kapoor — Analyst
Abhijeet Kundu — Analyst
Pankaj Kumar — Analyst
Anuj Sonpal — Analyst
Presentation:
operator
It. Ladies and gentlemen, good day and welcome to Rediko Khetan Limited Q1 and FY26 earnings conference call hosted by DAM Capital Advisor Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Manyal from Dam Capital Advisor Ltd. Thank you. And over to you sir.
Thank you.
Sanjay Manyal — Analyst
Good afternoon everyone. We would like to thank Redigo Khitan Management team for providing DAM Capital the opportunity to host Q1 FY26 earnings call. We have with us the senior leadership team from Redigo Ketan, Mr. Abhishek Ketan, Managing Director, Mr. Amar Sinha, Chief Operating Officer, Mr. Dilip Bandia, CFO and Mr. Sanjeev Banga, President, International Business. I hand over the call to Mr. Abhishek Ketan for his opening remarks. Over to you, sir.
Abhishek Khaitan — Managing Director
Good afternoon ladies and gentlemen. Thank you for joining us on our Q1FY26 results conference call. Before we begin discussions on Q1FY26 result, I would like to provide a brief update on the UK India fta. The negotiations between the two 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 Rs. 250 crores in FY26. And we expect significant cost advantages from this development. Thereafter, the duty will be reduced in nine equal installments to settle at 40% in the 10th year.
In three years we expect the import of Scotch of radicor to cross 400 crores. Moving on to the quarter performance. The first quarter of FY26 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 premization continues to resonate with consumer across markets. In Q1 we delivered our highest ever quarterly volumes, net sales and profitability. Our methyl 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 FY26 with important brand milestones that further strengthened our premium portfolio. One of the key highlights was the launch of Morpheus Super Premium Whiskey which marks our foray into the fast growing super premium whiskey segment. This is a high margin category where we were not present. With this launch we are not only leveraging the equity of the markets brand but also broadening our presence in the upper end of the whiskey category. Initial response has been very positive with growing free uptake 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 Kashmir, 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 Kashmir aspires to scale globally and position India on the world Luxury Vodka man. 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 Rantham Board 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 whiskey enthusiasts increasingly choosing it for its craftsmanship, rich blade 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 Whiskey 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 to double that volume. In this system 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 rupees 500 crores revenue from luxury and semi luxury brands in SY26. These results are a testament to the strength of our strategy and and the disciplined execution by our team. We remain sharply focused on driving profitable sustainable growth through continued premisation, deeper market penetration, innovation led approach and operational efficiency. The Indian alcove 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 Tradico Khezan 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 FY26 with robust contributions from the prestige and above category. This coupled with Enhanced profitability and the persistent focus on cash flow generation will guide 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 Dilip.
Dilip Banthiya — Chief Financial Officer
Thank you Abhishek. Thank you everyone for joining us on this call Today during quarter one of FY26 we reported total ISL volume of 9.72 million cases representing growth of 38% on year on year basis this is highest ever volume recorded by Redigo Khetan in a quarter. Prestige and above category volume grew by 41% in value terms the prestige and 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. An ongoing strategic rationalization of the portfolio have now returned to sharp growth trajectory from quarter three of last year.
This momentum is expected to sustain in next quarters also. We continue to see strong traction for our bank portfolio in Andhra Pradesh and have gained market share from 10% in first half of financial year 25 to over 28% in quarter one of current financial year which is highest in the industry. Gross margin during the quarter was 43% as compared to 41% in quarter one of last year and 43.5% in quarter four of last year. Gross margin improved on year on year basis due to the ongoing premiumization in IFL business coupled with relatively stable geometry scenario.
Gross margin remained broadly stable on quarter on quarter basis due to higher bulk sales in this quarter. EBITDA margin expanded. From 13% in quarter one 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 164 crores since March 25th 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 and A. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Aditya Soman from clsa. Please go ahead. Yeah.
Aditya Soman
Hi, good evening and thanks for the opportunity. So two questions from me. Firstly, in terms of marketing spends, you indicated that marketing spends have gone up which is to be expected when they’re launching premium brands. But can you give us a sense of how these marketing spends are being spent in terms of obviously in store marketing, any social media activism or anything of that sort. And then secondly, could you elaborate if there’s any sort of impact of any stocking up before the sort of 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. Thanks.
Abhishek Khaitan
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 trend goes, our main focus on marketing is. More on digital space. Second is on the shop visibility, 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 spend. 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 this is Maharashtra. We don’t expect much of much of this thing effect on our profitability going forward.
Aditya Soman
Understand? Very clear. And if I may just follow up on the marketing spends. So is there any sort of shift in marketing now that 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?
Abhishek Khaitan
See it all depends. Marketing is all relative. You know, sometimes if you want to market, you market in IPL etc. So in Radical, we have always like last seven years we have outbeaten the industry. Like right now we have done a huge promotion across all the eight 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 street 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 regions.
operator
Understand? Very clear. I’ll come back in the queue for more questions. Thank you.
operator
Thank you. The next question comes from the line of Dheeraj Mistry from ICICI Securities. Please go ahead.
Dhiraj Mistry
Yeah. First of all congratulation on very good set of numbers. And so 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 and any abnormal or let’s say north of India, what would be a normalized volume growth during the quarter.
Dilip Banthiya
So if we adjust Apple to Apple, the Andhra Pradesh then the volume growth in P and A category is upward of 15% of 15 to 20% and. Overall volume growth is around 12%.
Dhiraj Mistry
Got it. Got it. And I think this base, low base would continue till December quarter if I am not mistaken. Right?
Dilip Banthiya
Yeah. Yeah. This base effect will be Q2 and Q3. Partly.
Dhiraj Mistry
Partly Q3 also. Sir. Thank you very much. And second question is for in terms of margin that now that non IMFL business has been doing very well, what kind of margin we are we are witnessing in non IMFL business right now. And is there any further scope of improvement of margin in that business?
Dilip Banthiya
Yeah. So the point is in the quarter. The non IFL 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 amphile margin as well.
Abhishek Khaitan
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 three years we expect easily until something very drastically happens on the commodity side. Easily a margin expansion of 125 to 150 basis points year on year for the next three years. So we come to the late team.
Dhiraj Mistry
Okay. So your earlier guidance was somewhere around 100 basis point of margin expansion. Now you are increasing that 225 to 150 basis point. Is that correct?
Abhishek Khaitan
Yes, that is correct. Because you know our premium brands are doing exceptionally well. Plus you see 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 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 three and a half to four. So we are seeing a gradual shift happening to vodka where definitely Zadiko is in the biggest advantage space and vodka always gives you a higher margin 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 point is easily possible.
Dhiraj Mistry
Got it, Got it. And sir, last question is on Morpheus volume that we have learned through. So as per my thing is that this category is very profitable in a way also it turns in a way can drive very good volume growth. So what’s the internal aspiration for this Morpheus whiskey? What kind of volume growth do you envisage in next two to three years period of time.
Dhiraj Mistry
And which which would. Be the key focus states for that brand?
Dilip Banthiya
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 launched it technically in the super premium whiskey 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 say to say about 1,000 plus outlets, every shop has shown and every shop has shown strong tertiary demand by the consumer. So the first feed 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 is being launched. As the most expensive. Super premium whiskey in terms of price positioning or consumer price. It is 150 rupees 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 IMSL 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.
Ram Tambor. Was launched three years back at a. Price higher than the largest selling Scotch whiskey. 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 whiskey is something that is showing great traction. And Abhishek talked about the Spirit of Kashmir. 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.
Dhiraj Mistry
No? Very well said, sir. So this 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.
Abhishek Khaitan
See, as far as the single malt goes, we have spent 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 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.
Dhiraj Mistry
Got it. Got it. Congratulations once again. Congratulations on good set of numbers. Just one thing. What would be the view from Telangana market? And that would be one last question. Thank you.
Abhishek Khaitan
Yeah.
Dhiraj Mistry
What is the Telangana market?
Abhishek Khaitan
I. I didn’t. We could not understand your question. Please.
Dhiraj Mistry
So is there. What is the balance amount due from the Telangana market? Telangana government’s market.
Abhishek Khaitan
So. So let me tell you. In Telangana our overdues are roughly in the region of 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 am sure that Telangana government will very soon clear the balance as well.
Dhiraj Mistry
Okay, thank you. That’s it from my side.
operator
Thank you. The next question comes from the line of Harith Kapoor from Investec. Please go ahead.
Harit Kapoor
Yeah. Hi, good evening. So my first question was on After Dark. You know, I remember this being a fairly, you know, old brand in your portfolio now. You know where you had launched this along with another brand called Regal Talents and you were playing it, you were kind of doing the regional play here. But in the last two to three 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 two, two.
And a half years? That would be very helpful. That’s my first question.
Abhishek Khaitan
So good question. We were expecting this to come. See. In fact afterdouk was a sleeping giant in our stable and couple of years back we were always eyeing the semi luxury luxury segments, the premium segments. 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 that. What we have seen of late is that this has actually emerged as the largest segment of the Indian imfil 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 Whiskey 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 FY26 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.
Harit Kapoor
Just to follow up, is the aspirational now national for Archidot? Is it across markets? I just wanted to get an update on that.
Abhishek Khaitan
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 six months we are going to launch it national. Both hammer and tongs on this bag. 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 this the current fiscal. We’ll take it all India. So the brand is showing a very fast movement.
Harit Kapoor
Great. The second question is on you know on the state wise regulation. So we’ve seen Maharashtra being negative for the industry, Andhra Pradesh, Uttar Pradesh over the last 68 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 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.
Abhishek Khaitan
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 were the highest in the country and then when they started seeing growth in adjacent 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 and 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 or 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 you know, like the Maharashtra, 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.
Harit Kapoor
Couldn’t agree more. The last question was on Capex this year Diluji, what is the kind of number that you’re looking at? 5.6 roughly the capex.
Dilip Banthiya
Average run rate will be around 150 to 160 crores annually for next two years.
Harit Kapoor
And this is largely maintenance or there’s some addition as well?
Dilip Banthiya
Yeah, it is related to the brand and brand related and Malt related.
Harit Kapoor
Got it.
operator
All the best. Thank you. Thank you.
operator
Thank you. A reminder to all participants, if you wish to ask the question, you may press star and 1. The next question comes from the line of Abhijit Kundu from Antique Stockbroking. Please go ahead.
Abhijeet Kundu
Hi sir. Comrades 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 whiskey launch? I mean the name of the whiskey has been Morpheus. Morpheus was more about Morpheus branding. So what was the thought process behind it behind you know, naming the whiskey 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 brisket segment or the super premium segment, the tax increase has been lower as compared.
I mean and it has been higher in the entry level PN prestige and above and mid level prestige and above. So just some, you know, color on that wanted to get from you. These two are my questions.
Abhishek Khaitan
So let me tell you what’s happening. What’s been happening with the first. I’ll answer Maharashtra a bit of the question. See, the fact is that you know 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 rupees 200 to rupees 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 market, the Maharashtra market is very sensitive because it’s surrounded by states like say for example Daman, Madhya Pradesh, Rajasthan, Goa. So you know, if the politics 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, you know, the. Water will find its level. But today what we see that most large selling brands are trying to price them between 200, 250 rupees a nib, 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 whiskey segment of brandy which enjoys A market share of 65%. The brand equity for this category, for this category is extremely strong. In fact, five years back we decided. To make Prandi 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 IMSL category. And we are growing year after year. For three 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 have 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, you know, because that’s a subject matter which is dear to the heart of all youngsters today. And Morpheus Whitfield 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 day two dream with Morpheus whiskey. 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 whiskey segment in the times ahead.
Abhijeet Kundu
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 runtime board, I mean across the board, all your whiskey and wood coffee taken together, what could be the value contribution?
Dilip Banthiya
Yeah, as we have guided in quarter four that last year from luxury segment we the contribution to the IMFL business was around 10% which is roughly 350, 360 crore. And this year we are going to cost more than 500 crores from luxury and semi luxury.
Abhishek Khaitan
And the value of semi luxury and luxury is 50% right now in this quarter.
Abhijeet Kundu
And the gross profit margin would be very substantially higher as compared to obviously the, I mean the lower segments, the. P and S segment, much, much higher. Understood, sir. Thanks. Thanks a lot.
Abhishek Khaitan
Point here is that most of our luxury and semi luxury brands are still at the nascent stage. So the future seems to be very bright for these brands based on the attraction that we are seeing.
Abhijeet Kundu
Yeah, because Discord, the kind of 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.
Abhishek Khaitan
Actually if I say that I have always believed in one statement that to make the first million is tough. After that millions follows the same thing in alcohol like say Royal Rantambor. If we are targeting next year, half a million K. 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 Cashmere. And there are one, two more brands which are in the offering in the near term.
So I think the luxury, semi, luxury story has just begun.
Dilip Banthiya
And the innovation pipeline is very strong at Radico. So a lot of products are being worked upon.
Abhijeet Kundu
So that’s great to hear. And how 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 malls. So would that be the product offering?
Abhishek Khaitan
Yeah, yeah you’re right. The price of Sangam would be about 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.
Abhijeet Kundu
Great view. Thanks.
operator
Thank you. The next question comes from the line of Pankaj Kumar from Kotak Securities. Please go ahead.
Pankaj Kumar
Yeah, thanks for taking my question and 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 400 crore 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?
Dilip Banthiya
So the present this thing is around between 400 to 420 crores. And in the country liquor and all that we expect 4, 5% growth. And in the other the bulk spread which will get converted into the branded business slowly and gradually in four years. So we expect a single digit growth in the non IFL from 26 onwards.
Pankaj Kumar
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?
Dilip Banthiya
Yeah, so working capital one is it is a cyclical. We build the stocks in the season and all that which sometime in next six months get liquidated gradually. Secondly, yes, you are right that up which is now the duty excise duty has now been passed on to the wholesaler. So that is also gradually reducing the working capital stakes into that.
Pankaj Kumar
So that 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.
Abhishek Khaitan
I think in the liquor industry the credit norms of Radico are extreme. Would be the stringent type. Would be the most stringent.
Pankaj Kumar
Answer my last question. As you stated that one or two more brands which are there in the office. So which category you believe where we are not into and we need to add these. And until what is the time frame for these launches?
Abhishek Khaitan
See, in terms of the new brands, we are now with Morpheus brand Brandy as well available across on all segments. So we are working on how we can further strengthen our participation and offerings.
Dilip Banthiya
In the brown spirit or white spirit. So we’re working on all of this.
Abhishek Khaitan
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.
Pankaj Kumar
Okay, thank you. These are the questions myself.
operator
Thank you. The next question comes from the line of Anuj Romantic stock broking. Please go ahead.
Anuj Sonpal
Hi team. 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 an expansion in the premium range with the spirited questionnaire? Secondly, on the regular segment, in the previous quarter you had mentioned that we achieved 23% market share in Andhra Pradesh. How has that moved in this quarter? And how are we seeing the trends or the purchase realization for the regular segment shaping up in the coming quarters?
Abhishek Khaitan
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 cashmere, as Amar was saying earlier, it is going to compete with the imported multinational brand. And I think once you see the packaging, and more than the packaging, the way the 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, 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. 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 highest in the industry.
We are clearly the number one. 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 company especially for radical. And. Hopefully Tamil Nadu also opens up. So these three are the positives which can change the game like Andhra.
Anuj Sonpal
Thank you. Thank you. Great clarity. Good luck for the upcoming quarters.
operator
Thank you. 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.
Dilip Banthiya
So thank you everyone for joining us. Moving forward, we will continue to deliver a strong prestige 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 capsules are operated 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 earning call. In the meanwhile, if you have any queries, please follow up or feel free to write to us.
Thanks a lot.
operator
Thank you. On behalf of Dam Capital Advisors Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.