India’s liquor market is increasingly being shaped by premiumisation. Consumers are moving toward higher-priced spirits, while demand for vodka, gin, single malts and experience-led brands continues to rise.
That shift has opened up new areas of competition between Radico Khaitan and United Spirits, the Diageo-backed market leader.
While United Spirits remains the larger company, Radico is expanding beyond its traditional mass-market image and building a portfolio of premium and luxury brands.
FY26 marked a strong year for Radico Khaitan.
The company crossed:
- ₹6,000 crore in net revenue.
- ₹1,000 crore in EBITDA.
Management described FY26 as an inflection point, helped by a richer product mix and disciplined execution.
The biggest contribution came from the Prestige & Above segment.
In Q4FY26:
- Prestige & Above volumes rose 28% year-on-year.
- The luxury portfolio generated sales value of ₹475 crore.
For FY27, the company has guided for:
- 20% volume growth in Prestige & Above.
- 125 basis points of EBITDA margin expansion.
Growth is coming from multiple brands
Radico’s premiumisation strategy is not built around a single label.
Magic Moments Vodka reported:
- FY26 volume growth of 21%.
- Sales of 8.6 million cases.
- Sales value of around ₹1,500 crore.
During Q4FY26, the brand’s volumes climbed 28%. Flavour extensions, including the Flavours of India range, supported growth.
Other brands also expanded.
- Royal Ranthambore Whisky grew more than 50% in FY26.
- After Dark Whisky continued to gain scale.
- 8PM Premium Black started seeing better traction after packaging changes.
Luxury brands are becoming a bigger focus
Radico has been expanding its portfolio of Indian-origin premium spirits.
Its luxury lineup includes:
- Rampur Indian Single Malt.
- Sangam World Malt.
- Jaisalmer Indian Craft Gin.
Two new products were added in FY26:
- Rampur 1943 Virasat Indian Single Malt.
- The Spirit of Kashmyr Luxury Vodka.
Management has positioned the strategy around “Taking India to the World.”
The company said Gen Z consumers are showing greater interest in white spirits, and flavour innovation is helping attract younger drinkers.
Radico has also indicated that it does not currently plan a major push into low-alcohol or ready-to-drink products.
Instead, it is concentrating on premium and luxury categories.
United Spirits still has the advantage of scale
United Spirits remains far larger and has access to Diageo’s international portfolio.
In FY26, the company reported:
- Net sales value growth of 7.6%.
- EBITDA growth of 11.6%.
- EBITDA margin of 18.4%.
- Free cash flow of ₹1,375 crore.
Several brands continued to perform well.
- Signature remained competitive in the Upper Prestige segment.
- Black & White became the country’s largest scotch brand by volume.
- Johnnie Walker strengthened its premium positioning.
Newer growth engines also gained momentum.
- Smirnoff crossed 1 million cases in FY26.
- More than 400,000 cases were sold in the fourth quarter.
- Don Julio became the company’s fastest ₹100-crore-plus trademark and captured one-third of the tequila market.
- Godawan continued to expand its presence in Indian single malts.
The company is also increasing investments in bars, restaurants and premium experiences to strengthen brand recall.
Areas where Radico could increase competition
Competition between the two companies is becoming sharper in several categories.
Vodka
Magic Moments is already one of the largest vodka brands in the country. Continued growth through flavours and premium variants could intensify competition with Smirnoff.
Indian luxury spirits
Radico’s portfolio of Rampur, Sangam, Jaisalmer, Virasat and Kashmyr gives it a stronger presence in Indian-origin premium products.
United Spirits, meanwhile, relies on brands such as Godawan, Johnnie Walker and Don Julio.
Premium whisky
Radico is expanding brands including:
- Royal Ranthambore.
- After Dark.
- Morpheus.
- 8PM Premium Black.
Management had said in Q2FY26 that the Royal Stag and Royal Challenge segment represented a 55-60 million case opportunity.
United Spirits has strengths that are difficult to replicate
Distribution remains one of United Spirits’ biggest advantages.
The company also benefits from global categories where Radico is still building its presence.
Tequila is one example. Don Julio crossed ₹100 crore in NSV within nine months.
Scotch is another area where United Spirits sees long-term opportunity. Management believes the India-UK free trade agreement could improve accessibility and support growth in the category.
Still, some parts of the portfolio have faced pressure.
According to the company:
- Policy changes in Maharashtra affected the Popular and Lower Prestige segments.
- McDowell’s remained weak across most markets outside Andhra Pradesh and Maharashtra.
- A new bundle has been introduced first in Uttar Pradesh as part of efforts to revive the brand.
Radico is becoming financially stronger
Radico’s profitability has improved alongside premiumisation.
The company has reported:
- Better operating leverage.
- Expanding margins.
- Lower debt levels.
Management has said it expects the company to become debt-free by FY27.
Outlook
Radico Khaitan is unlikely to challenge United Spirits on scale in the near term.
However, its growing presence in premium whisky, vodka, gin and Indian luxury spirits could make it a stronger competitor in some of the industry’s fastest-growing segments.
United Spirits still has the benefit of size, global brands and strong cash generation.
But Radico’s momentum in homegrown premium labels has made it a company that United Spirits will have to watch closely.
TL;DR:
Radico Khaitan is strengthening its premium and luxury portfolio through brands such as Magic Moments, Rampur and Royal Ranthambore. United Spirits remains much larger, but rising competition in vodka, premium whisky and Indian luxury spirits could make Radico a stronger challenger over time.
AI summary:
- Radico crossed ₹6,000 crore in revenue and ₹1,000 crore in EBITDA in FY26.
- Magic Moments, Royal Ranthambore and luxury brands are driving growth.
- United Spirits reported 7.6% NSV growth and ₹1,375 crore in free cash flow.
- Competition is increasing in vodka, premium whisky and Indian luxury spirits.
- United Spirits retains advantages in scale, distribution and global brands.
