Radico Khaitan Limited (NSE: RADICO) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Sanjay Manyal — Investor Relations, DAM Capital Advisors
Abhishek Khaitan — Managing Director, Executive Director
Dilip K Banthiya — Chief Financial Officer
Analysts:
Abneesh Roy — Analyst
Harit Kapoor — Analyst
Karan Kamdar — Analyst
Het Raichura — Analyst
Nilabja Dey — Analyst
Nitin Gupta — Analyst
Abhijeet Kundu — Analyst
Naveen Trivedi — Analyst
Jasdeep Walia — Analyst
Nitin Awasthi — Analyst
Anurag Jain — Analyst
Ajay Thakur — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the radical Khetan Limited Q3FY26 earnings conference call hosted by DAM Capital Advisors. 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 the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is now being recorded. I now hand the conference over to Mr. Sanjay Manyal from DAM Capital Advisors. Thank you. And over to you sir.
Sanjay Manyal — Investor Relations, DAM Capital Advisors
Thank you. Good afternoon everyone. We would like to thank Radical Kitan’s management for providing Dam Capital with the opportunity to host Q3 FY26 earnings call. We have with us senior leadership team From Radical Ghitan, Mr. Bishek Ketan, Managing Director, Mr. Dilip Bandia, CFO and Mr. Sanjeev Banga, President, International Business. I hand over the call to Mr. Bishek Ketan for his opening remarks. Over to you, sir.
Abhishek Khaitan — Managing Director, Executive Director
Good afternoon ladies and gentlemen. First of all, wishing everyone a very very happy New Year and thank you for joining us on Radikoketan’s Q3FY26 earnings conference call. The third quarter represents a defining phase of acceleration of for Radico Catan where strategic clarity, portfolio depth and execution excellence have translated into tangible outcomes. The Indian spirit sector continues to build strong momentum. Led by premization and evolving consumer aspirations. We have converted these structural tailwinds into our highest ever quarterly performance. With volumes of 9.75 million cases, net revenue of 1,547 crores and EBITDA of 265 crores. These results reflect the strength and quality of our business model.
Our performance was led by a premium and luxury focused portfolio supported by a benign raw material environment and strong operating leverage. This translated into meaningful margin expansion and a sharp improvement in return ratios marking a clear inflection point in the sustainability and predictability of our earnings. On the brand front, our recent launches are seeing strong early traction validating the depth of our consumer insight and disciplined innovation and approach. The launch of Rampur 1943 Viratak Indian single Malt marks a defining milestone in our journey of building world class luxury Indian spirits. The brand carries forward the soul of Rampur Distillery, an institution with legacy since 1943 where tradition and innovation come together to create whiskies of depth, warmth and character.
Rooted in heritage and craftsmanship and shaped by modern aspiration. It is positioned to set the new benchmark in the character. Alongside this, our broader premium portfolio continues to scale steadily across key markets supported by sharper execution and increasing consumer pull. Royal Rancopur Whiskey delivered an outstanding performance with over 50% growth in Q3 driven by strong demand across both Civilization and CST channels. Magic Moment Vodka continued its strong growth trajectory with 18% volume growth during quarter three and crossed rupees 1050 crores of sales in the nine month period. This performance was led by the recent flavor innovations After Dark Whiskey continued to deliver strong performance, recording 40% growth year on year in the quarter, crossing 2.4 million cases volume in the nine months.
8:00pm Premium Black, where we unveiled the new packaging earlier this year has started gaining strong momentum. This brand will also be a key driver of our premium volumes going forward. We are seeing broad based strength across our premium brands driven by strategic price positioning and sharper execution. This balanced performance across categories is enhancing brand equity while providing greater stability and consistency to our overall portfolio. The on Trade channel continues to be a strategic priority for us. As consumption increasingly shifts towards experiences and brand led choices, we are deepening our partnership with key outlets and influencers.
Strong brand advocacy in the on trade is improving visibility, accelerating trials and strengthening long term consumer franchise across premium segments. I’m also pleased to share that during the quarter Rampur Indian Single Malt became the only Indian spirits brand to be served on Air India first and business class on international flights. This is a moment of pride for us as an Indian brand carrying Indian craftsmanship, heritage and excellence to global consumers and a strong validation of the growing stature of Indian spirits on the world stage. Looking ahead, our confidence is supported by strong forward visibility, a robust balance sheet, a stable cost environment, improving mix and a pipeline of brands and extensions that align well with evolving consumer preferences.
We remain focused on disciplined growth, capital efficiency and building brands that endure with a differentiated portfolio and execution driven organization and it’s clear we are well positioned to sustain momentum and deliver consistent profitable growth in the next quarter and the year ahead. With that, I would now like to hand over the call to our CFO Dilip Banthia for a detailed review of our financial and operational performance. Thank you over to you Dilip.
Dilip K Banthiya — Chief Financial Officer
Thank you Abhishek. Thank you everyone for joining us on this call today. Quarter three of FY26 was a strong quarter, encouraging operating performance translating into higher profitability and improved return ratios. The results reflect the combined impact of premiumization, scale, benefits, input, cost stability and the simple financial management. During the quarter we delivered a strong all round performance with Highest ever total IM12 volume of 9.75 million cases reflecting 16.7% year on year growth. The season above category excluding the royalty brand continued its steady upward trajectory recording 26% volume growth and 29% value growth with realization improving by 2.8% on year on year basis our regular category volume grew by 33% in the quarter.
The change in route to the market in Andhra Pradesh was key driver of this robust supported by agile execution strengthened brand availability Our performance in Andhra Pradesh has been encouraging with our market share increasing over 15% in Q3 of last year to 26% in the year quarter gone by making us the leading player in this state on profitability Front gross margin during the quarter was 46.9% representing a 1050 basis point expansion on year on year basis 290 basis point expansion on quarter on quarter basis. Gross margin improved on yoy basis due to improved raw material scenario coupled with ongoing premiumization.
Raw material accounted for 225 basis point of gross margin expansion during the quarter as compared to last year Q3. We remain optimistic that ENA and grain prices will stay stable to favorable in near term providing continued margin support. Our ANSP investment were at 6.9% of IMFIL revenue compared to 5.5% in Q3 of FY25. 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 300 basis points on year on year basis to 17.2%.
Turning to the balance sheet, net debt reduced by 209 crores since March 25 driven by improved profitability. Our balance sheet remains strong and we are on track to become debt free by FY27. Board of directors has approved setting up 100% only on subsidiary of the company in Scotland. This is in line with our strategy of investing in our MALT capabilities. Edible Ketan is one of the largest importer of blended Malt fit and this step is towards securing access to the matured MALT supply chain for distillation and maturation in the cost effective manner. Capital allocation continues to be prudent and selective.
Our ongoing CapEx are largely directed toward maintenance CapEx and essential capacity optimization. Looking ahead While we remain mindful of external volatility, the current cost environment, operating leverage, benefits and financial discipline providing comfort on margin sustainability and cash flow generation, our focus remains on improving profitability, strengthening the balance sheet and enhancing returns with this now we open the line 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 their touchstone telephone. 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 is from the line of Abnish Roy from Nuvama. Please go ahead.
Abneesh Roy
Congrats on great performance. My first question is on apart from Andhra market where you highlighted market share gains and very strong absolute performance. My question is which other markets either you have grown faster than the company average, which are the states and you have gained market share. So either of these where you think you have gained market share or clearly the growth is faster than the company average.
Abhishek Khaitan
I think our growth has come from basically everywhere except Maharashtra. But more than that, the major states where we have grown would be Andhra, Uttar Pradesh, Telangana, then Rajasthan MP Ariana. These would be the markets where we’ve grown faster.
Abneesh Roy
On two specific states which you mentioned. In UP if you could comment if in the country liquor is there any increase in competition and second in Telangana, some of the other companies. I mentioned that in Q3 there was some adverse impact of route to market change. So have you also seen in these two markets. So both are different questions. So one in UP if any competition increase and Telangana if any route to market.
Abhishek Khaitan
As far as UP the country liquor segment goes, actually there’s competition everywhere. But Radico we have got the highest volume and highest market share as far as the country liquor segment goes. And to the second question about Telangana, there was a lottery which was done in the month of December. So October, November, the sales were slow. But December it was a bumper sale for everyone.
Abneesh Roy
Because. Entire quarter, how was it in Telangana.
Abhishek Khaitan
Entire quarter would be. It was high single digit growth about 5 to 6%.
Abneesh Roy
Now last question. We are seeing most of the liquor companies see good expansion in gross margins. Which is. Which is a good development. But in the past if we see such good periods of gross margin expansion, have you seen some of the players become a bit more competitive, bit more focused on market share? I understand AD spends, everyone will see an increase. That’s not a problem. But from a pricing perspective is there a risk that in some markets some players might become more aggressive?
Abhishek Khaitan
Eventually we’ve seen because we feel alcohol is more of a luxury product, it’s more of a brand. So by cutting prices the Brands are not built. So and as far as Radico is concerned, we don’t change volumes. So we always prefer to build brands which always pays off in the longer run. So we are not seeing any kind of such activity.
Abneesh Roy
So thanks, that’s all from my side. Thank you.
operator
Thank you. The next question is from the line of Hareet Kapoor from Investec. Please go ahead.
Harit Kapoor
Hi, good evening and congratulations on excellent results again. So I just had three questions. One was, you know, on ATM Black, so this has been a brand that did extremely well for us and then we saw it slow down a little bit last year seems to have kind of picked up in terms of growth again. So if you could just kind of highlight any changes that you made in the brand in either the packaging blend or is it just increased distribution expansion and just an outlook for do you see increased market share gains in that price point segment.
Now you also have after dark there. So just some sense on ATM Premium Black and its trajectory. That’s my first question.
Abhishek Khaitan
Premium Black, we had gone for a packaging change gradually. We have extended to all the states now and in fact last quarter the brand did extremely well. It grew by 40% and overall we’ve been plucked this year and I think now it’s back into a growth trajectory and as far as after that goes, which is in the after dark growth, it has grown very well. For the quarter we’ve grown again at 40% and for the entire year it’s up by 80%. So I think both the brands are on the right trajectory right now.
Harit Kapoor
The second thing was on the Scotland subsidiary. So just explain a little bit about. How this helps in terms of, you know, your procurement and what benefits you get out of this as well as is there any investment required this one.
Abhishek Khaitan
So areth, as you know that we are the largest importer of the matured malt split from Scotland and as we are working and our focus is the malt based alcohol and malt based whiskeys. So this is a step, this is the first step in that direction that we want to as we are procuring more and more matured malt split. So to actually do start with whether there are various options available which can be buying of fresh malt, they are maturing it, they are exchanging the malt and if need be then in future investing in malt.
So I think as the period goes by, but this is the right direction for the company and since our uses are increasing every year, we feel fit that we should have investment into that.
Harit Kapoor
Part of the world will be Any incremental, incremental initial investment required there or you know, you’re just going to figure this out as time progresses.
Abhishek Khaitan
So I think it we actually starting very small way but in due course of time as the value creations happen, we will look at that. Being 100% subsidiary and in ODI route we don’t have any issue but as time will come we will come out with our vesting strategy what we want to do with that.
Harit Kapoor
And last question was on, you know we’ve seen a host of new initiatives in P and A in the last six to 12 months. When we look at the next say 12 to 15 months going forward, you know, apart from the diabol investment and likely outcome of that over the next few months quarters, whenever that happens, do we see that it’s going to be more investment in what we’ve done so far over the last 612 months? We’ve done a lot and are trying to kind of expand distribution for these new initiatives. Focus there or you think there is at least in the next 12, 15 months there is more scope for, you know, filling white spaces, adding new variants and stuff like that.
So my short question is is it kind of consolidation and distribution expansion for our recent new initiatives is the way to look at, you know, kind of PMing over the next 12, 15 months rather than a host of new things which we have done over the last six months.
Abhishek Khaitan
This is a very good question. Like if you see in the last two to three years the kind of brands we have launched starting from our latest two brands which are Indian single malt, our spirit of cashmere vodka, then even Kohinoo drums and Sangam Office and the Morphe Whiskey. I think these are very powerful brands and if I see them five years down the line these will be really, really big bands hopefully. So I think the time is there radical with its distribution might next two years we are going to take it to All India and concentrate on the building part of these brands because these all brands are apart from Moshe, they are in the luxury space and we feel there is a huge potential which we can harness.
What we did with our Jetel Mehra Indian craft gin which now commands more than 50% of market share in the luxury gin space. So I think what you have rightly said this is the consolidation apart from the delivery portfolio we are going to spread and focus on our distribution on these.
Harit Kapoor
Fantastic. Wish you all the best in your journey. Thank you.
Abhishek Khaitan
Thank you.
operator
Thank you. The next question is from the line of Karan from Choice Institutional Equities. Please Go ahead.
Karan Kamdar
Congrats on a great set of numbers. So I’ve seen Royal and Board being available here in gymkhanas. And as an on trade kind of exercise, could you throw some more color on what we are doing as part of increasing our on trade? And what is the current percentage of on trade versus off trade?
Abhishek Khaitan
If you see about a year and a half back in our con call, we had said that the thing which we have to really work hard is on an on trade part because now we’ve got the luxury brand. So in fact, in the last one and a half years, we have really beefed up our on trade team. We have recruited from all the institutions, et cetera. We will be adding close to about 50 to 70 people on the on site. And we have addressed each of the. We have addressed each of the bars, clubs and everything.
I think that is where the future of these luxury brands are there. And what we are seeing there is a huge visibility which we have achieved. Like even in the airports which you see 70, 80% of the outlets carry our brand now. So I think on trade we have worked very hard and we have got great results. There are.
Karan Kamdar
Okay, thank you. So any color on.
Abhishek Khaitan
Percentage of one trade would be about close to 6 to 7% of our total sales now.
Karan Kamdar
Yeah. Okay, 6 to 7. That’s great. So what do we plan on? So there were also offers. Do we plan on continuing with offers? And is these offers like buy one, get one included in our ENP or is that above revenue line?
Abhishek Khaitan
It’s a part of our ANP. So OnCreate has not many activities. You have DJ nights. We have loads of activities. Then there are happy hours. Then there’s also the visibility part and everything. So it is all a part of the alp.
Karan Kamdar
Thank you so much. I’ll get back in line.
operator
Thank you. The next question is from the line of Het Raichura from Ananya Research. Please go ahead.
Het Raichura
Congratulations on the set of numbers, sir. I would like to know the update on the tequila category. So what kind of margins are we looking at and what kind of revenues can be in the coming quarters?
Abhishek Khaitan
As you know, tequila is a very. It’s a high margin business. But the volumes, it will take time because it’s a growing category in India. So Margu will be quite healthy in that.
Het Raichura
Okay. Any numbers that you would like to put on?
Abhishek Khaitan
We would not like to comment on the margin number for the tequila.
Het Raichura
Congratulations. Thank you.
operator
Thank you. The next question is from the line of Nilabja Day from Ashmore Research. Please go Ahead.
Nilabja Dey
First of all congratulations for a great set of numbers. So there is a news specifically came in the leading newspapers that alcohol companies are facing issues in collections in the Telangana. And also some operational challenges after this new excise policy. Obviously the second one is not new in Maharashtra but Telangana there is a collection issues and the government is not reducing money. Is there any improvement? Can you just throw some light how the things are panning out?
Abhishek Khaitan
The collection issue has been going on for the last two years. In fact in the last 12 months we’ve got payment out of the old outstanding. And hopefully the entire old outstanding should be cleared within within a month. So I think we are quite hopeful things should improve.
Nilabja Dey
Okay. And Maharashtra sir, what is the after this new excise thing the country liquor is getting tractions and the premium one premium people ones are getting some issues. So is there any normalization of the stuff?
Abhishek Khaitan
What has happened in Maharashtra? They have introduced this Maharashtra made vicar MMM which can be catered by only the local company who have a Maharashtrian as a partner or ownership originally. So what has happened is the MRPs have been raised from the regular range to 200 rupees plus for a nick bottle. So the industry in the Q3 has declined by close to about 20%. But the Maharashtra made liquor is slowly gaining pace. And I think total market size of Maharashtra would be about 2.4 million cases per month. Which is down down to about 1.8 million cases.
And Maharashtra made liquor is now right now 4 to 5 lakh cases.
Nilabja Dey
Okay. Okay. Okay sir. Thank you. Thanks for the clarification. Wishing you all the best.
operator
Thank you. The next question is from the line of Nitin from mk. Please go ahead.
Nitin Gupta
Thanks for the opportunity. I’d like to continue with the previous participant question. I just wanted to have some clarity around rv. Look sort of what is the stance with respect to the quote allowing all the companies can participate in mml. So are we also looking to participate in our under our jv?
Abhishek Khaitan
Actually in this month only we are going to launch our MML to our joint venture that is rnv. And we should be in the market in the month of this month onwards.
Nitin Gupta
Okay. That’s heartening to know. Second question pertains to like with respect to the raw material setting. First is around the scotch prices. Are they inflationary? How we are placed with the scotch price for sourcing.
Abhishek Khaitan
I don’t know about inflationary. Because if you see all the articles it is saying that there is a sea of scotch which is available in Scotland. There is a Glut So I think we are seeing a price decline in fact in the scotch prices and there is enough of scotch which is there. So we are seeing softening of prices.
Nitin Gupta
This is good. And in terms of price, just wanted to have some perspective around this banqueting market like where we have wedding parties, corporate events. So how material is this segment for the overall algorithm sector and how we are placed in this segment since we have the full portfolio available with us now.
Abhishek Khaitan
As I told earlier the same question was asked. This is one of our key focus areas now and in the last one and a half years we have really beefed up our team and we are addressing this part of the segment since we have our portfolio and we’ve got substantial gains from it. More is that you have to be seen in these banquets, these parties etc. Which create a brand. So I think this is one of the biggest focus areas of Radico right now.
Nitin Gupta
And how material would be the contribution Aruba industry?
Abhishek Khaitan
I won’t say the contribution as I said on trade, combining these banquets etc would be in the range of about 7 to 8%. So more more than the volumes. It’s more the imagery and more the being visible or being seen at these places and sampling.
Nitin Gupta
Okay, this is babe. My last question pertains to this luxury portfolio. So will you be able to salience of revenue the nine months? Thank you.
Abhishek Khaitan
For the full year. Last year we were 340 and this year we should be close to about 500 crores in revenue terms.
Nitin Gupta
Okay, thanks a lot and all the very best.
operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the Touchstone telephone. The next question is from the line of Abhijit Kundu from Antique Stockbroking. Please go ahead.
Abhijeet Kundu
Congratulations sir on a very strong set of numbers. My first question was on Andhra. You have done really well. I mean outperformed, increased your market share sequentially and which is I believe has been driven by brandy. So getting into the next year how do you see the overall scenario there? Because market share gains have been very consistent and has been going up. But how do you see that market growing for you in the sense that because sustaining that kind of growth on this kind of base would be challenging. How do you see that?
Abhishek Khaitan
Yeah, Andhra has been a very good market for us as of now. And what we have seen that the luxury, the premium side of the portfolio started now increasing in the last two, three months which we feel that should gain traction which would be very good for Radico and as far as the brandy goes where we have a lion’s share at the regular segment. I think going forward we’ll be happy if we can maintain our market share and participate how the industry goes there.
Abhijeet Kundu
And in case of your debt levels those have been coming down consistently over what period do you plan to I mean repay majority of that.
Abhishek Khaitan
If you see our debt is hardly anything which is left now. So that is least of our concerns. But I think the kind of cash flow the company is throwing by next year FY27 we have.
Abhijeet Kundu
Great. And with third question is you have now you know created a subsidiary for in Scotland. So I mean acquisition of Scottish breweries or distilleries all of that would be a part of this. Right. Because there are a lot of Scottish breweries distilleries there which are which could be on the block. So obviously those would be your target.
Abhishek Khaitan
As Philip was saying that you know we are the largest buyers of Scotch and our premium portfolio is going. The meat of the scotch is going to go up. And also we are seeing a decrease in the prices of Scotch because there is oversupply. A lot of distilleries are getting closed. So that’s why we created a subsidiary so that we be evaluating. But we are not in a hurry or we are not like doing that. But we have taken a labeling thing by making company whether we mature malt out there, we buy directly or is there something which is available at a very very good price which has inventory of Scotch north brands.
We can look at it but as of now nothing is on the cards.
Abhijeet Kundu
Yeah. Okay sir, thanks. That’s it from my side comrades again thank you.
operator
The next question is from the line of Naveen Trivedi from Motilal Oswal. Please go ahead.
Naveen Trivedi
Yeah. Good evening. Good evening everyone and congratulations on a very strong numbers. So just a couple of things from my side in terms of the PND volume growth. If I look at there’s been consistent kind of a strong delivery despite we have seen other players have not kind of seen this sort of a growth rates any color about the market where we’ve seen where we think ahead of what we kind of reporting the numbers. So to get a sense about which of the markets we are kind of gaining shares. So that’s one first question. Actually the second question was on the. Margin side.
Abhishek Khaitan
To answer your first question already we’ve answered the same question was asked where we said that we’ve seen market share increases compared to competition in states like Uttar Pradesh, Rajasthan mp, Haryana, Telangana. All these Places.
Naveen Trivedi
Sure sir.
Abhishek Khaitan
And what is your next question?
Naveen Trivedi
My next question was on the margin side. So this quarter we have seen both gross margin and EBITDA margin has seen plus sort of a kind of expansion. So what is the outlook on the gross margin side and the EBITDA margin side for next year? And also in terms of margins, how mix is playing the role and how much RM cost is being supported this quarter? Sir, if you have any breakup.
Dilip K Banthiya
The. Gross margin in this quarter has improved by 1050 basis points. It is largely on the back of the softer raw material scenario where we have had an improvement in margin of around 225 basis point and the product premium margin. Product mix has been 125 basis point margin improvement. As far as the EBITDA margin is concerned again 100 to 110 where there is an operating leverage and other things is also playing a key role. Now 100 to 125 basis point is on account of that and 200 basis point is on account of the raw material improvement on sequential basis.
However the product premiumization has played a key role and there also the margin has improved by more than 250 basis point. The 200 basis point is on account of the product premiumization and 5060 basis point is on account of the raw material softening.
Naveen Trivedi
Any comments on the outlook side?
Abhishek Khaitan
We see this scenario of raw material to be stable to benign to stable and I think the upward trajectory as we guided earlier also that in next two years we are going to improve our margin on the basis of our product profile and premiumization happening by 125 basis each for next two years whereby to go to place in kind of margin?
Naveen Trivedi
Yeah, sure sir. So that’s all for myself.
operator
Thank you. The next question is from the line of JASDEEP from Clockwine Capital. Please go ahead.
Jasdeep Walia
Hi sir, thanks for taking my question. So what have been the trends on the export front in nine months? What is exports as a percentage of sales and by how much has it grown over the last nine months?
Abhishek Khaitan
Well in terms of as a percentage of the overall business the volume is about and the on revenue is about 10%. And we’ve been having a steady growth in our export business both in terms of the luxury portfolio as well as the regular portfolio. We’re also focusing a lot on the global travel retail and that’s a key market expansion or channel expansion that we foresee the coming years.
Jasdeep Walia
Got it. And so what has been the growth in revenues in the last nine months in exports.
Abhishek Khaitan
It’S been consistent so be happy with that.
Jasdeep Walia
Got it, sir. And what’s the composition of exports in terms of the contribution of PNA to the overall exports revenue?
Dilip K Banthiya
So we do have composite. Composite it is 7 and a half percent by value and 5% by volume.
Abhishek Khaitan
80% of the portfolio would be PNA.
Jasdeep Walia
Got it. 80% of portfolio PNA. Got it. Thank you. So that’s all from my side.
operator
Thank you. The next question is from the line of Nitin Avasti from Incred Research. Please go ahead.
Nitin Awasthi
Hello, sir. A broader question from my side. About a decade ago, if you would sit down with any liquor company which would have aspirations and ask about the end goal. I said acquisitions at the end. Finally, you would end up with a distillery in Scotland being a must for any company in India, an Indian company to do well. However, over a period of time we saw Japanese whiskey is doing very well with Japanese malts and of course Indian malts itself doing very well. Then it seemed like that didn’t those Scottish distillation and malt unit was no more a requirement for Indian brands or Indian companies to succeed.
Is there a misread in this assumption. Of mine or is that a very. Very big requirement still, even after the success of Indian malt?
Abhishek Khaitan
This is an interesting question you have. Like earlier, if you would say that the wines, if you talk about wines, it would be only France. But now you see wines coming from all the regions across the globe. In fact, new age wines are somewhere much better than maybe the old age wines. So same thing. Like even the malt that you see earlier it was the Scottish malts and now the Japanese malts are more expensive than the Scottish malt. In fact, Indian malt is, are becoming more expensive than even the Scottish malt as of now. So I think the trend is changing and more importantly is people across the globe, people in India want a different taste and a different experience.
And malt has its unique character where every country has a different kind of pellet to the malt. So I think it’s now kind of a global phenomenon. You no longer have to be in Scotland to have the right war.
Nitin Awasthi
Understood, Sir. Would this be man. Thanks to this phenomena that has taken. Place in the last decade within Japan in India would probably be the reason for the supply of the Gulf being there increasing in Scotland, having the pressure on the prices of the said malts because they had naming rights right on their malt, they were the only guys who could call it squash. Nobody else could. Everything else was still called malt. But since because of that reason would be the reason of the price correction. That these guys would have seen. So the current move, if any, should. Be seen as a opportunistic move rather. Than the play of Scottish malt still. Being the premium brand to go to. Is that understanding correct?
Abhishek Khaitan
It’s a yes and a no to some extent. 100%. What we are seeing is right, the malls from India, malls from Japanese, Japanese malls, even Taiwan, a lot of countries, they have got their own malls, but Japanese and Indian malts have really done well. And second is there is a slowdown in US and Europe, which has added further pain to the and China, which has further added pain to the Scotch industry. So I think it’s a combination of all the activities where it’s a great opportunity because for the existing brand, when you are using X kind of mall, you get that price advantage.
Nitin Awasthi
Understood, sir. Got it. Thank you.
operator
Thank you. The next question is from the line of Anurag Jain, an individual investor. Please go ahead.
Anurag Jain
Good evening, sir. Congratulations on an excellent set of numbers. My question is, till now Radicook has developed all the brands in house across different categories within the spirit segment for Tequila, you have taken a markedly different. Approach in terms of, you know, how.
Abhishek Khaitan
First of all, Radico has created all the brands organically. So even in tequila, it will be our brand which will created organically bottled in Mexico. So I think in radical, we are following the same policy because we know the art of creating brands and we always prefer to build versus buy. So I think we are following the same thing in the tequila also.
Anurag Jain
Okay, sir, as per the press release, it shows that Rediko will be holding a 47.5% stakeholder.
So is there some other arrangement for the brand ownership or that would be also 47 and a half percent only currently.
Abhishek Khaitan
This is a joint venture between radical khetan 47 and a half. 47 and a half percent is the Shahrukh and its associates and 5% is the little Karma.
Anurag Jain
All right, thank you.
operator
Thank you. The next question is from the line of Abhijit from Antique Stockbroking. Please go ahead.
Abhijeet Kundu
Thanks for the follow up. My question was on Morpheus Whiskey. I believe it is now available across eight states. And so which are the how has been the initial response to it? And you know, to follow it up, you would be also registered registering it with the CSD at some point in time. When do you see that? I mean, what are the plans with that.
Abhishek Khaitan
As far as mortgage goes, it is right now at the seeding stage and the initial response what we are getting is quite positive. We have priced it higher than the leading brands. So it’s at a. It’s a higher price point which Radical has always done with all its brands. So I think the response, what we are getting from the market is encouraging. It will take time because as we said, we do not chase volumes. We let the brand grow on its own and we feel that it has a good potential. And as far as the CSB goes, it’s still a long way off to get into CSB because there are a lot of criteria about the number of years it has to be in the civil market cases.
Then it takes one year to come in. So I think there’s still a lot of time left for it to enter the cst.
Anurag Jain
Okay, thanks. That’s it for myself.
operator
Thank you. The next question is from the line of Ajay Thakur from Anandrati Securities. Please go ahead.
Ajay Thakur
Hello sir. Thanks for taking my question sir, I had two questions. One was what to understand what.
Abhishek Khaitan
Can you speak a little.
operator
Can you please speak little louder?
Ajay Thakur
Hello. Yeah, I had two questions. First was wanted to understand more on the contribution that we have from the. Or the contribution kind of, you know, run rate that we have from the super premium and the luxury segment. I remember the last time a few quarters back you had indicated that the run rate was roughly about 400 to 500 cr or annual basis for the super premium and the luxury brands. What it would be now if you can share some details around the same.
Abhishek Khaitan
Actually we’ve already told in our call that we expect it to be close to 500 for the coming year which last year was 340 crores.
Ajay Thakur
Okay. And the second part I wanted to also understand bit more on the. What would be our, you know the policy for the cash we would be generating post the debt repayment. How would we be utilizing this cash and you know, how would we be in terms of, you know, distribution of this cash as well. If you can share some insights into that as well.
Abhishek Khaitan
I think depending on the board’s decision but I think mostly it will be used for dividend payout.
Ajay Thakur
Quite helpful. Thank you sir.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir.
Abhishek Khaitan
In the closing we want to say that this quarter in score is strength and momentum of ready for Tetan business model. Record operating performance, expanding margins, improving returns and strong cash generation highlights the quality and durability of our growth. With the differentiated portfolio and disciplined financial execution and robust balance sheet, we are well positioned to sustain this momentum and continue to deliver consistent, profitable growth. We remain highly confident in the road ahead and committed to creating long term value for our shareholders. Thank you for joining us this call today. Look forward to connect with you next quarter.
Thank you.
operator
Thank you. On behalf of DAM Capital Advisors. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.