Radico Khaitan Limited (NSE: RADICO) Q4 2025 Earnings Call dated May. 07, 2025
Corporate Participants:
Unidentified Speaker
Abhishek Khaitan — Managing Director, Executive Director
Dilip Banthiya — Chief Financial Officer
Amar Sinha — Chief Operating Officer
Sanjeev Banga — President – International Business
Analysts:
Unidentified Participant
Himanshu Shah — Analyst
Abneesh — Analyst
Anil Shah — Analyst
Harit Kapoor — Analyst
Vishal Gutka — Analyst
Akhilesh Bhattar — Analyst
Bhavdeep Vora — Analyst
Abhijeet Kundu — Analyst
Pankaj Kumar — Analyst
Sanjay Manyal — Analyst
Vishal Gutka — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Radikokhetan Q4FY25 results conference call hosted by Daulat Capital Markets Private 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 the conference call, please signal an operator by pressing 0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Himanshusha from Daulat Capital Markets Private Limited. Thank you. And over to you, sir.
Himanshu Shah — Analyst
Thank you, Navya. Good afternoon everyone. At this moment we would like to thank Radico Catan Management team for providing Dollar Capital with the opportunity to host the Q4FY25 earnings call. We have with us the senior leadership team from the Radico Khetan, Mr. Abhishek Khetan, MDN CEO Mr. Amar Sina, Chief Operating Officer, Mr. Dilip Bantia, Chief Financial Officer and Mr. Sanjeev Banga, President, International Business. I will now hand over the call to Mr. Abhishek Khaytan, MDN CEO for his opening remarks. Over to you, sir.
Abhishek Khaitan — Managing Director, Executive Director
Good afternoon ladies and gentlemen. Thank you for joining us on our Q4FY25 results conference call. There has been a major development regarding the much anticipated UK Free Trade Agreement last evening. While we await the fine print, I’d like to provide a broader perspective before diving into the details of our Q4 results. Given the strong growth of our whiskey portfolio including Sangam Doyle, Ranthambore after dark and 8pm premium black whiskey, we are among the largest importers of bulk Scotch for blending purposes. Our scotch import in FY26 are projected to exceed rupees 250 crore in landed price inclusive of import duties.
Any reduction in these duties will translate into meaningful cost saving for us. Luxury spirits are a lifestyle category and pricing plays a crucial role in shaping consumer aspirations. We do not anticipate altering our pricing strategy as our brands hold a perceived value that resonates with consumers. Positioned at a premium compared to existing brands, our products compete not only with the global brands in India, but also internationally. Over the years, each of our luxury brands has carved out a distinct identity. This development is a welcome move and will significantly contribute to our premization journey as we continue to focus on creating more luxury brands.
The first quarter of FY26 marks an exciting milestone as we prepare to introduce two luxury brands projects that have been under development for two years. These launches represent a major leap in Radico Khetan’s premization journey, reinforcing our confidence that the best is yet to come. Now moving on to the quarterly performance. Building on the strong Momentum from the third quarter, Radicook Hetan delivered an impressive 28% volume growth in quarter four FY25, our highest quarterly growth in the past three years, FY25 has been the best year in our history on all key financial metrics with highest ever turnover of 4851 crores, EBITDA of 668 and PAT of 341 crores.
FY25 was truly a year of transformation for Adiko Cetan. Fueled by a commitment to expanded backward integration, enhanced distribution capabilities including on trade, a robust innovation pipeline and impactful consumer engagement, our flagship premium brand Magic Moments Vodka has crossed the milestone of 7 million cases during the financial year, a true testament to its growing popularity. Adding to this momentum, we are thrilled to welcome Kriti Sanon as our brand Ambassador. With her charisma, style and widespread appeal, this partnership is set to elevate Magic Moments to unprecedented heights, redefining the benchmark for premium vodka in India. Continuing our commitment to innovation, we unveiled 8pm premium black in a bold new look design to elevate brand imagery while showcasing its distinctive product story crafted around the harmony of eight select notes.
Furthermore, within the first half of the year we will also enter the Super Premium Whiskey segment, strengthening our presence in high growth categories and setting new benchmarks in excellence. While innovation remains the cornerstone of our strategy, our immediate priorities center on strengthening our existing portfolio, making targeted marketing investments and expanding our distribution network. Looking ahead, we are poised for a strong double digit growth in the Prestige and above category. Enhanced profitability and a persistent focus on cash flow generation all driving long term value creation for our shareholders. With this, I would now like to hand over the call to our CFO for a detailed operation and financial review.
Thank you. And over to you Dilip.
Dilip Banthiya — Chief Financial Officer
Thank you Abhishek. Thank you everyone for joining us on this call today. During quarter four of financial year 25 we reported a total IMFL volume of 9.15 million cases representing a growth of 28% on year on year basis. This is the highest ever volume recorded by Redigo Katan in a quarter Pastry and above category volume grew by 17% in value terms the P&A category registered 22% growth. IFR realization increased by 4.6% on year on year basis. Renal category volume was impacted due to certain state specific industry related issues.
An ongoing strategic rationalization of the portfolio which has now returned to a sharp growth trajectory. This was due to a lower base coupled with normalization of state specific industry issues. Changes in group to the market in Andhra Pradesh contributed 1500 basis points to our overall volume growth. It is important to highlight that the prestige and above segment excluding Andhra the growth has been higher. The recent RTM changes in Andhra Pradesh have progressed well promoting stability predictability in the regulatory environment. As a result, we have seen strong traction for our brand portfolio and gained market share from 10% in the first half of to over 17% in quarter three and now 23% in Q4 which is highest in the industry.
We quickly adapted to the changing environment and created CAPSTE to capitalize on this industry opportunity. Gross margin during the quarter was 43.5% compared to 41% in quarter four of last year and 43% in quarter three of financial year 25. Gross margin improved both on year on year basis and quarter on quarter basis. Due to the ongoing premiumization in IFL business coupled with relatively stable raw material scenario, we are optimistic that pricing scenario for ENA and grain will remain stable going forward. During financial year 26, ad spend is within our targeted range of 7 to 8%.
It has been higher during the quarter due to new celebrity engagement and other new brand related spends. Interest cost increased sequentially due to higher working capital utilization during the quarter. However, we have seen significant liquidation of inventory in quarter four. Furthermore, we have also realized significant debtor toward the end of the quarter resulting at that reduction of 114 crore over last year. Going forward, our focus will be on driving profitable growth along with cash flow generation and more efficient working capital management resulting into debt reduction. With this now we open the house for Q and A.
Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press one on their touchstone phone. If you wish to remove yourself from the question queue, you may press N2. 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 Abhinish from Nuvama. Please go ahead.
Abneesh
Yeah, congratulations on very good volume growth. My first question is on your first statement on fta so wanted to understand this. It’s a competitive market. For example in Karnataka where the state government has cut taxes in the premium spirit. Obviously most of the players have passed it to end customer. So in this scenario when the raw material of cost becomes cheaper two scenarios can Be there one because it’s competitive, the players could cut prices so that it becomes affordable and because they have higher gross margins they will be in a position to cut. I note your comment that you don’t think pricing will happen given it’s a premium brand, but I just wanted to take on that.
And second is could some state governments in in compensation because they suddenly see that prices have reduced in many states, then can they increase taxes on their own because state governments need more revenue and this is one of the ways to achieve that. That first question.
Amar Sinha
So first of all I must say that the fta which UK has been a very progressive and favorable step that the government of India has taken and the government needs to be congratulated for the same. As far as the alcove sector is concerned, the custom duty reduction will result in a 6 to 8% consumer price from MRP reduction. Now in the premium and luxury segment, most international brands of repute are already present in the country. It is very unlikely that reputed foreign brands will reduce their price for this small benefit of 6 to 8% to their ultimate consumer.
This would also in fact dilute the imagery of the premium brands. The companies are likely to mop up this saving and save on their costs. Rather, that’s our understanding of the situation. There is a chance that there might be some smaller companies with smaller Scotch whiskey brands that may come in. But as far as the premium and luxury segment consumer is concerned, there is really no market and traction for cheap Scotches. So for Radico, cheap Scotch whiskeys are no competition to us. Now with regard to Radico’s perspective on business, Radico has always if you see our track record in the last few years we have believed in pricing all our products above the market leader in every category irrespective of what the price position is for international brands or any other brands in India, the example is very clear.
If you see the pricing of Jaisalmer, Royal, Ranthambore, Rampur, we are priced much ahead of the competitors we are creating. Actually we are creating a portfolio of the best Indian brands and therefore we do not anticipate any change in our pricing strategy or price positioning. So truly speaking, we see FTA as a big win for India and companies like Radico which are making India proud and taking it to the world. Radico as Mr. Abhishek Khetan mentioned a little while ago that we plan to import bracket malt Scotch to the extent of 250 crores in FY26 for blending with our products.
And that reduction, if it happens, which is likely to happen, will give us substantial cost advantages and a margin uptake. So hence it’s a net positive for Radico. Your second question was whether state excise departments will raise duties. See, state excise departments have the autonomy to make price changes on their local taxes because liquor is a state subject matter. But then we need to see because every state government today is looking for increasing sales and collecting more. It has been seen in the past that whenever you raise prices beyond a point it affects the brands adversely.
So I don’t think it’s very difficult to comment as of now. Let’s wait and watch.
Abneesh
Well, one quick follow up on this. When is the earliest date when your raw material becomes cheaper? In terms of Scott, any. Any clarity on that?
Abhishek Khaitan
It depends when when the notification will come out so that that only the government knows. As of now there’s no clarity.
Abneesh
No, my question was not only from a notification date that was also there. Do you have some forward contracts or inventory which could delay that by and by how much?
Dilip Banthiya
No, no. The question is the inventory in pipeline is normal inventory and as and when it is made applicable after this the import will attract lesser duty. The cost will come down based on that. So. So just to be very precise, we are not holding huge stocks at all.
Abneesh
Sure, sure. Last question. In Andhra if you could tell us in terms of the overall industry scale up post the new default. Any anything you want to highlight there and how do you see FY26 in Andhra?
Amar Sinha
So let me tell you, Andhra as we have just mentioned has progressed very well with the new excise policy and group to market change. What is actually happening now is that the market has started to stabilize. It’s picking up and in the previous year in fact 60% of the business was with local players. But in the current regime right now 60% of the business is with national players and organized players. So it’s actually progressing very well and we hope that the market will not only stabilize but it will from here on continue to grow. New brands are likely to be introduced with the tender that is going to open sometime shortly and we hope to do well in that.
Second, the most important point is as far as Radico is concerned we have a market share now which is 23% which earlier in H1 was 10%. In Q3 it went up to 17% and now it’s 23%. We are the largest players and this actually supports the point that the consumer there was looking for national and organized players. To come in. So that’s benefiting us as a company. Our volume growth overall is 28% all India. And substantial growth is also being contributed by AP for all organized brands.
Abneesh
Sure, thanks. That’s all from my side. Thank you.
operator
Thank you. Next question is from the line of Anil Shah from Insightful Investments. Please go ahead.
Anil Shah
Yeah, hi. So just wanted to get a sense on, you know, if you could, on your raw material scenario. You know, has the broken rice from the government Food Corporation of India started and generally how the raw material situation in terms of pricing and availability is concerned. And second question is on the Delhi opening up. If you could throw some light in terms of how that state is shaping up. Thank you.
Dilip Banthiya
So as far as the raw material scenario is concerned, after the government announced in this phase the food corporation rice available for ethanol, to the extent the demand from the market has gone to the government sci go down and that has resulted into the softening of the prices.
The prices which were in the range of around 27,500 to 28,000 has come down to around 25,000 now. Okay, so it is a good development. And this has also impacted the other key raw material like maize, etc. And all that. So that has also seen a correction of 2000 rupees approximately per ton. Your second question on Delhi opening up, sir. How is that state shaping up? I mean, any progress on that side? No.
Amar Sinha
So let me tell you. The Delhi policy is right now the way it was last year. And the new, the existing policy has been extended for another three months.
Hopefully in July we’ll see the new policy. As a company, we feel that the policy will benefit all national and organized brands. Okay, thank you.
operator
Thank you. Next question is from the line of Harit Kapoor from Investec India. Please go ahead.
Harit Kapoor
Yeah, good evening. So just had three questions. You know, in light of the recent development. Yesterday, you know, is there a, you know, you had a FY26 target of 500 crores for the super premium luxury portfolio. Do you believe that it’s kind of wait and watch whether that can be achieved given that you might see some changes in the competitive environment in the next 12 months or do you believe that that is something that you’re still very confident of hitting?
Abhishek Khaitan
In the current year we achieved 340 crores and we’ve grown by 32%. And in our luxury portfolio, like the way Royal ransombore is growing month on month and also our Jaisalmer and Rampur and especially with the two new introduction, we are very confident that we surpass 500 crore.
Harit Kapoor
Fantastic. The second point was on the debt side. So you know we are at up to 5, about close 600 crores of net debt. Just wanted to get your sense of. I know there’s a two year plan of going to zero, almost zero in FY26. Is there a kind of target that will half this number or anything that you can give a sense on.
Dilip Banthiya
So Harith actually as the debt is coming down now and we see in two years. So it is next year 26, around 35, 40% further and then year after that almost zero.
Harit Kapoor
Got it. And last thing you know was on the commodity environment, I mean in the current context do you see, you know bulk scotch has obviously become cheaper on Ena and the grain has already also become cheaper. So on ENA and glass, both of those elements, you know, do you see a kind of a stable environment for the next six to 12 months at least from where we are right now is that the right way to think about it.
Dilip Banthiya
Till now has been stable. But grain has definitely given this thing and our main input in alcohol. We have a large grain alcohol capacity also. So they are the advantage of the cost being coming down and all that will come. So Enai actually when it the grain price has gone up has also not gone too high as compared to the what the grain price has gone. So let us see if the demand and supply scenario. But we don’t definitely foresee any pressure or inflation that in 26.
Harit Kapoor
Got it. Wish you all the best. Those are my questions.
Dilip Banthiya
Thank you. Glass has seen some correction and that correction has been twice in last year it was 3, 4%. Those kind of corrections were there and now the scenario looks like they are also stable.
Harit Kapoor
Great, thanks.
operator
Thank you. Next question is from the line of Vishal Gutka from AST investment managers. Please go ahead.
Vishal Gutka
Yeah. Hi Dean. Good set of numbers. Two questions from my side. I think on Andhra Pradesh you achieved 23% market share. Any further opportunities there to improve the market share from here onwards? Because all of India become a very high number and ancillary question is that any states we’re expecting route to market changes like maybe in Bihar the elections are there change and Delhi definitely have highlighted any other state where you’re expecting any changes in route to market or policy changes.
Amar Sinha
So as far as Andhra is concerned, see we are becoming stronger with our whiskeys like After Dark which is in the deluxe segment. Which obviously means that we are getting a stronger distribution base. Now as Mr. Abhishek Ketan mentioned that we have two luxury whiskeys, one super premium whiskey on the cards over the next six months and two luxury products in the first quarter. I think with new products coming in, new existing whiskeys becoming stronger, there is a strong chance that our market shares may further improve.
Vishal Gutka
Got it.
Dilip Banthiya
And as far as your question of regulatory changes, we see many being in near future west hiding as and when Prohibition. If the election is favorable then maybe prohibition goes away, which is very good.
Vishal Gutka
Yeah. And so ancillary question on up market. So up market has gone a lot of policy changes in last quarter and I think the new policy has come in. So if you can just broadly highlight what has happened in the new policy. How is the performance in the month of April if you can broadly elect for up market?
Amar Sinha
So yeah, so up. The best thing. Is with the new, in fact you got composite shops which have come up which have expanded the outlets by almost 40%. Another big advantage that has accrued to the industry is that in IMFL sailors are now paying the which means that the industry is lowering its working capital requirement, which is a big plus. This also means that any organized company like an established player like Radico will reap huge benefits because the traction for fast moving brands will be much more because wholesaler would like to and rotate it faster. So that’s a very big which has happened I think with the increase in universe.
Radico certainly is very optimistic that the market share will also improve. So that’s a big win. And in Q4 itself Radico has seen a 37% growth in PNA segment and the market share actually has improved to 29% in Q4 from 23 to 29%.
Vishal Gutka
That’s a very big number, sir. Wishing you all the best for future quarters. Thank you.
operator
Thank you. Next question is from the line of Akhilesh Bhattar from Ikigai Asset Management. Please go ahead.
Akhilesh Bhattar
I just had a question on the margin side. So when do you expect to catch up to your previous peak margin levels that we had seen in FY20, FY21 and with the headwind that you that we have right now in terms of the UK FDA deal and other headwinds? So how like what are the tailwinds that you foresee and what is the timeline for that you’re foreseeing as to the catch up for margins. Thank you.
Dilip Banthiya
So we have improved the EBITDA margin as well as gross margin in this year. FY25 versus FY24. The EBITDA margin almost improved by 150 basis points and with the kind of growth in our brand portfolio and P and A being the growth in FY26 and onward also. So we see an continuous improvement in our EBITDA margin. I think 100 basis points minimum EBITDA margin improvement will be there and after that we will have to see how much is the benefit accrued through the spot. So these are actually our business model is tuned to improve the margins continuous for three years.
operator
Thank you. Next question is from the line of Bhavdeep Vora from Franklin Templeton Asset Management India. Please go ahead.
Bhavdeep Vora
Yeah, thank you for the opportunity. I just wanted to understand, you know, with this reduction in the import duty for the imported Scots. So like when one thinks from the perspective of a state government, so you know, in terms of the collection of revenue, so whether the revenue collection per bottle is higher in some of this Bio BII stuff or it would be more like say the Indian on the prestige side with the pna, the prestige and above segment. So how does you know, both this compare? So just, you know, trying to understand that, you know, in terms of what does this do to the competitiveness of the the premium Indian IMFL basically compared to imported spirits.
So maybe your perspective on that would be helpful.
Amar Sinha
So right now see, the bio sector is not very huge in the country. In an industry of 400 million, basically 5 million cases is the BII and bio market. So it’s a small niche segment which is growing of course. But really if you ask me, any tax changes doesn’t impact and is not comparable with what one gets from the semi premium and premium segment. In fact, the premium segment in India itself is 18 million cases and the deluxe segment is approximately 70 million cases. Okay, so the tax collections obviously are not achieved.
Bhavdeep Vora
No, no, sure that’s fine. But right, so from an incremental perspective, right, so if basically bio becomes more competitive, right, so maybe you know, now reaching probably 2000 rupees or even below price points in some of the states. So does consumer shift from say the Indian pn, I mean to the top end of India’s premium to some of this imported stuff and does it kind of, you know, kind of is more accretive to government or how does it matter? I mean to say in terms of how does it work for their revenues?
Amar Sinha
I just mentioned to you a little while ago that see this duty reduction at the current rate from 150 to 75 will only give relief by 6 to 8% on the consumer price side. So that’s not a very big reduction. Actually, if you calculate and we don’t foresee the foreign brands reducing the price of premium brands to. For this 7, 6, 8% because it dilutes the image of such premium brands.
Bhavdeep Vora
Okay, okay. But it also kind of calls for, you know, bringing the duty down to 40% over 10 years. So I mean, incrementally there is going to be some.
Amar Sinha
Because by then Indian brands are now reaching out to the world. And in the next 10 years we don’t. Yeah, Indian single malts would be forced to reckon with globally, which is already started happening. And if you see last year, Indian single malt sold more than all the international malt whiskeys in the country.
Bhavdeep Vora
Okay. Okay, great. Thanks. Thanks. That’s it for my.
operator
Thank you. Participants who wish to ask questions may please press in one at this time. I repeat, participants interested in asking questions may please press star in one at this time. Next question is from the line of Palak from MIB Investment Management. Please go ahead.
Unidentified Participant
Hi. So my question is again on the update on eKip.
operator
Your voice is not clear.
Unidentified Participant
Am I audible now? Hello.
operator
Little better then. Yeah, tell us again on the ukspa.
operator
So I understand that you’re concerned about the pricing aspect.
operator
Hear you at all.
Unidentified Participant
Is it clear now? No.
operator
Could you speak little louder please?
Unidentified Participant
Am I audible now?
operator
You are not audible. You might want to reconnect.
operator
Thank you. Next question is from the line of Abhijit Kundu from Antique Stockbroking. Please go ahead.
Abhijeet Kundu
Hi. Congratulations on a very strong set of numbers and thanks for the opportunity. My one first question was the raw material, the backward integration that you had done for raw material with the. With the broken rice prices now correcting about 10% maize prices also lowered. What would be. There was expectation that, you know, you would save about 12 to 13 rupees per liter on your. On your raw material. So where are we now and what could be the kind of savings that can happen in FY26?
Dilip Banthiya
So the raw material side, as your question is regarding make versus buy, the delta was around 12, 13 rupees three years back. After that it has reduced to 3 to 4 rupees. And now it is stabilizing between to 8 rupees. And we see that this kind of. This thing will remain and this is a stable scenario.
Abhijeet Kundu
Okay. This, this would be the. You are planning to repay your debt in two years time backed by the cash flow generation, right? I mean by FY27 in this year. I just wanted that clarification. In FY26, you would reduce your current debt by about 30, 40% and the rest of it you would reduce in before 27, is that right? Or it would take over three years.
Dilip Banthiya
That’s right.
Abhijeet Kundu
So it will be, it will be. I mean you would be debt free in two years time, right?
Dilip Banthiya
Yeah, of course.
Abhijeet Kundu
You know you are launching products, doing new products in luxury segment. There was a. What happens in the upper classic segment. Because there was expectation that you launch. Something you know would target the launch signaling in the upper coastal segment. You know, in the segment where the likes of antiquity lenders signature they are there. So any plans on that?
Amar Sinha
So. So I think we just mentioned to you that before the end of H1 we are already ready to launch the super premium segment actually which is on the cards. Okay. It’s a huge segment of 18 million cases which we are targeting doing a double digit rate.
Abhijeet Kundu
Okay. Okay. No, I, I had heard that but I, I you know misinterpreted it. I thought that super premium would be like in the leagues of blended scotch or for that matter royal. So that is basically upper perfect cycle which you’re talking about. Yeah.
Amar Sinha
Yeah, that’s right.
Abhijeet Kundu
Okay, that’s it for once.
operator
Thank you. Next question is from the line of Pankaj Kumar from Kotak Securities. Please go ahead.
Pankaj Kumar
Yes, thanks for taking my question and congrats on good set of numbers. Question pertains to again on the new launches that we are looking at. So which are the categories where we believe would be the potential or maybe the future opportunity to launch new categories. 18 million cases one where you talked about.
Amar Sinha
So we are, we are actually launching which is the premium that we are talking about. And that should. And then.
Pankaj Kumar
Okay. Okay. So with these launches you believe done with the new launches or this exercise continue in future.
Amar Sinha
With this generation and. And this practice. Practice will continue. We are always trying to. Okay, my second question pertains to the Telangana payment scenario. So how is it. So any update on that? So on this Telangana the outstanding amount. So any update on that? So now it’s fine.
Pankaj Kumar
Yeah. The question is on the Telangana the outstanding amount that we had from the Telangana state. So any update on that?
Amar Sinha
Yes. Yes. So first of all so there is nothing to worry on the receivable since last month. So that is. So what would be the current outstanding including that the dues that we had.
Pankaj Kumar
Okay, so my last question is on the regular category. So of course we have seen in this quarter, we have seen very strong growth due to the RTM in AP market. How do you see FY26 in terms of growth guidance for Regular category. That’s my last question. Okay, thank you.
operator
Thank you. Next question is from the line of Sanjay Manial from DAM Capital. Please go ahead.
Sanjay Manyal
Hi sir. Congratulations on good set of numbers. Just one question. I have largely the way your volumes have been growing, you think that you would require to take another round of Capex for the back further sort of increasing capacity for ema.
Abhijeet Kundu
See we put we about last two years back made up a Sitapur unit which is one of the largest in Asia. And with this I think we are quite self sufficient for the next three to four years.
Sanjay Manyal
Okay. Okay. Perfect, perfect. And just on the SK front the most of the questions have been asked on that. But you know which brand specifically would be in the in the price range where most of the foreign brands are. Where you’ll be competing with most of the foreign brands of bio category or bi category.
Amar Sinha
So we have Royal Ranthambore which has been priced 100 rupees higher than the largest selling scotch whiskey brand. And we are growing by 50%. And this brand is the brand of the future and we see great potential.
Sanjay Manyal
Okay, okay, perfect. That’s all from us.
operator
Thank you. Next question is from the line of Anurag Jain, an individual investor. Please go ahead.
Unidentified Participant
Good afternoon sir. Good afternoon sir. Am I audible? Yes. So the. The previous participants question on Telangana, the there was an echo when management was speaking so it was not here. I’ll just repeat the question like how is Telangana? How are we placed in Telangana in terms of sales and outstanding receivables?
Amar Sinha
So as far as Srilangana is concerned, outstanding today is not so much of an issue. Whatever we are supplying, we are getting paid within these specified credit periods. As far as old outstanding are concerned, we have it. We have the lowest overdue old outstanding which is below 100 crores. And since last month the government has started paying us that as well. We are hoping that Telangana as a state will perform better now because people are getting paid on time so the industry will grow. We are anyway growing in that state.
Unidentified Participant
All right, thank you. I have one more question on the exports segment. How has been the exports performance of the company for FY25 versus FY24?
Sanjeev Banga
See FY24 we had reached a record level that was the highest ever. Fortunately we exceeded that in FY25 and we further grew. Current export in terms of volume is about 5% of the total business and in terms of value is about 9% and it continues to grow.
Unidentified Participant
All right, thank you. The Australian FTA was signed about three years ago. How has been Redco experience in terms of, you know, getting market access to Australia? Has the FTA really helped or it’s still something work in progress?
Sanjeev Banga
In terms of fta, it was primarily on the wine. In terms of our exports to Australia, we do export our luxury portfolio which is our single vault. And in terms of our rest of the whiskey or the rum portfolio, Australia also has certain non tariff barriers in terms of easing and maturation and the Indian whiskey do not qualify for that. So we have been in discussion with them on removing these non tariff barriers.
Unidentified Participant
All right, thank you.
operator
Thank you. Next question is from the line of Vishal Gutka from Ask Investment Managers. Please go ahead.
Vishal Gutka
Yeah, I think two questions. First is a regular segment. I think we’ve seen a bumper growth during the quarter. So what should be our expectation for FY26 given that Andhra policy changes help, shall we expect 20% plus growth in regular segment? And second question is on Indian single malt appropriation. I think radical also a part of it. So just want to check from you what measures as association we are taking so that there is no manipulation done by other new entrants who are entering this space. Thank you.
Amar Sinha
So I’ll take the regular question. So first of all we must say that after nine quarters of a bad period for the regular segment from Q3 of last year, the regular segment has started bouncing back right now since the previous three nine quarters were bad, there is a low base. So the growth in the next two quarters would be healthy. And there were many issues relating to state specific states with regard to the industry. That’s also normalizing rtm. Change in AP has brought the sales back which we see stabilizing in the year ahead. So as we guided earlier sometime back, we hope to see the regular industry growing at about 10 to 12% or 12 to 13% in the times ahead.
Sanjeev Banga
In terms of the Indian Malt Whiskey association, you know, Indian single malt is still a very nascent category. So the four founding members, who are the pioneers and who’ve been promoting and working really really hard in creating this category, felt there is a need to set certain standards and norms to protect the authenticity and the goodwill of Indian single malts. So that’s what the main objective is of this. And as we go along, we are in discussion with various government authorities to set certain specifications and standards for Indian single malts so that everyone conforms to that and we do not dilute the equity and the brand image of Indian films in the global market.
Vishal Gutka
Okay, thank you.
operator
Thank you. Next question. Is from the line of Palak from MIV Investment Management. Please go ahead.
Unidentified Participant
Hi. Thank you for the opportunity for Mitli. Yeah, yeah. Please go on. So my question is again on the UK fda. So I completely understand your point that there’s not going to be any pricing pressure. But my question is that your voice is not clear. My question is that it is a welcome move for other players to enter. The Indian market market considering this had a very huge potential. I was listening to your morning interview in which you mentioned that you consider marketing and distribution as a very strength of radical. So can the player enter the market. By collaborating with a national Pan India player? I mean is this. There is going to be a much more choices for the customer so we might see increase in the competitor intensity in the segment. I just want to know your thoughts on this.
Amar Sinha
So if I understand you correctly, you’re asking can those. Can the foreign brands, the smaller brands take up national distribution with Indian players? Is that right? Yeah.
Unidentified Participant
In partnership with the national players?
Amar Sinha
No. So let me tell you today as far as Indian players are concerned, national players are concerned, Radico is the largest and there are one or two other players. But today I think the possibility of any smaller company coming and taking up with them seems to be remote. So we don’t see that as much of a threat. And they will not be brands which are of significant value because they would be amongst the largest selling brands which are already present in India.
Unidentified Participant
Thank you.
operator
Thank you. As we have no more questions, we close the call and hand over to the management for closing comments.
Dilip Banthiya
Moving forward, we will continue to deliver a strong C and a volume growth driven by our diverse brand portfolio. Secondly, we will further develop our luxury brand portfolio which will see a major contributor to our profitability. Furthermore, we are focused on ensuring that the capacities operate as efficient as far as possible. This will enable us to generate cash, repay debt and return cash to the shareholder. We look forward to interacting with you on our next earning call. In the meanwhile, if you have any queries, please follow up with us. Please feel free to write to us.
Thank you.
operator
On behalf of Daulat Capital Markets Private Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.