Alcoholic Beverages Q2 FY2026 Insights

Alcoholic Beverages Sector Analysis: Navigating Premiumization, Diversification, and Regulatory Shifts

Small Summary

The Alcoholic Beverages sector in India is currently experiencing a dynamic phase characterized by robust growth, a strong push towards premiumization, and strategic diversification efforts by key players. Companies like Radico Khaitan, India Glycols, and Globus Spirits are demonstrating significant financial and operational improvements, driven by evolving consumer preferences, strategic brand investments, and favorable raw material dynamics. While premiumization in IMFL (Indian Made Foreign Liquor) and other spirits categories remains a central theme, the sector also benefits from the government's ethanol blending program, which provides a stable revenue stream for integrated players. Challenges include state-specific regulatory complexities, global trade uncertainties impacting exports and chemical segments, and intense competition. However, a strong innovation pipeline, expanding distribution networks, and a focus on operational efficiencies are positioning these companies for sustained, profitable growth. Debt reduction and strategic capital allocation are also key priorities, aiming to enhance shareholder value and support future expansion.

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A. INDUSTRY OVERVIEW & MARKET LANDSCAPE

The Indian Alcoholic Beverages industry is a complex and highly regulated sector, characterized by diverse product categories, varying state-level policies, and a rapidly evolving consumer base. The extracted data provides insights into the operational and strategic landscapes of three significant players: Radico Khaitan Limited, a prominent IMFL manufacturer; India Glycols Limited, a diversified player with significant interests in potable spirits and biofuels; and Globus Spirits Limited, an integrated manufacturer with a growing consumer business.

**Total Addressable Market Size and Growth Rates:** While explicit total market size figures are not provided, the growth rates reported by individual companies indicate a healthy and expanding market. Radico Khaitan, a pure-play IMFL company, reported a **+33.8% year-on-year growth in Net Revenue from Operations for Q2 FY26** and **+33.2% for H1 FY26**. This robust growth suggests a buoyant demand environment for alcoholic beverages. Similarly, India Glycols, with its Potable Spirits segment, saw a **+24.5% year-on-year growth in Q2 FY26** and **+23% for H1 FY26** in this segment's net revenue, further reinforcing the positive market trend. Globus Spirits, another integrated player, reported a **+10% year-on-year growth in its Consumer Business Revenues for H1 FY26**, with its Prestige & Above (P&A) segment growing at an even more impressive **+55% year-on-year for H1 FY26**. These figures collectively point towards a market that is not only growing in volume but also seeing significant value growth driven by premiumization.

**Market Structure and Segmentation (by product, geography, customer type):** The market is broadly segmented into: 1. **IMFL (Indian Made Foreign Liquor):** This category includes whiskies, brandies, rums, vodkas, and gins. Radico Khaitan's data shows IMFL contributing a significant portion of its net revenue, specifically **70.1% in Q2 FY26** and **70.6% in H1 FY26**. Within IMFL, there's a clear distinction between **Prestige & Above (P&A)** and **Regular & Others (R&O)** segments. * **Prestige & Above (P&A):** This segment is a key focus for all three companies due to higher margins and evolving consumer preferences. Radico Khaitan's P&A segment contributed **68.6% of its total IMFL revenue in Q2 FY26** and **67.6% in H1 FY26**. Globus Spirits reported P&A contributing **over 15% of its total consumer revenues in H1 FY26**, a significant increase from **under 5% in H1 FY23**. * **Regular & Others (R&O):** This segment, while offering lower margins per unit, contributes significantly to volumes and cash flows, especially for integrated players. Radico Khaitan saw an exceptional **+79.6% year-on-year volume growth in Regular & Others in Q2 FY26**, largely attributed to a route-to-market change in Andhra Pradesh. Globus Spirits' R&O revenues grew by **+5% year-on-year in H1 FY26**, and its R&O volumes reached **15.8 million cases in FY25** from **12.3 million cases in FY21**. 2. **Country Liquor:** India Glycols and Globus Spirits are significant players in this segment, particularly in states like Uttar Pradesh and Uttarakhand. India Glycols maintains leadership in Country Liquor in UP and Uttarakhand. Globus Spirits notes that the UP market alone consumes **almost 1 Crore cases of Country Liquor per month**. This segment provides stable volumes and cash flows, often serving as a base for integrated manufacturing operations. 3. **Non-IMFL / Other Beverages:** This includes categories like beer and other spirits. Radico Khaitan's "Non IMFL" segment contributed **₹446.5 Crore in Q2 FY26**, representing **29.9% of its net revenue**. Globus Spirits has ventured into the beer segment with **Carib Beer**, selling **40,000 cases in the last quarter** in UP. 4. **Ethanol/Biofuels:** This is a crucial segment for integrated players like India Glycols and Globus Spirits. India Glycols' Biofuels segment reported **₹423 Crore in net revenue for Q2 FY26**, growing **+63% year-on-year**. This segment is driven by the government's ethanol blending program. Globus Spirits also produces maize-based ethanol, constituting **almost 70% to 75% of its total ethanol production**.

**Geographic Distribution and Regional Dynamics:** The Indian market is highly fragmented geographically due to state-specific excise policies. * **Uttar Pradesh (UP):** Repeatedly highlighted as a key market. India Glycols maintains leadership in both Country Liquor and IMFL in UP. Globus Spirits considers UP its largest market in terms of population and favorable regulations, and a key growth driver for both R&O and P&A segments. Globus is also setting up a new distillery in UP, expected to be operational in Q3 FY26. * **Andhra Pradesh:** Radico Khaitan experienced significant volume growth in its Regular & Others category due to a "route-to-market change" in this state. * **Uttarakhand:** India Glycols maintains leadership in Country Liquor and IMFL. * **Delhi:** Globus Spirits anticipates a new, more robust excise policy from April 2026, which is expected to open up opportunities for premium and luxury experiences. India Glycols is among the top three vodka players in Delhi. * **Kerala:** India Glycols is expanding its IMFL market geographically into Kerala, launching rum and brandy, which constitute 90% of the state's volume. * **West Bengal, Haryana:** Globus Spirits notes that policies in these states are currently not favorable for the R&O category, but it is undertaking manufacturing realignment in West Bengal. * **Rajasthan:** Globus Spirits experienced marginal volume degrowth in R&O due to inventory realignment. * **International Markets:** Radico Khaitan has a significant international presence, with Rampur Indian Single Malt Whisky available in **around 50 countries and 35 travel retail**, and Jaisalmer Indian Craft Gin available in **around 40 countries and 30+ travel retail**. Sangam World Malt Whisky is also available in **around 40 countries**. This indicates a growing global appetite for Indian premium spirits.

**Key End Markets and Applications:** * **Direct Consumer Consumption:** The primary end market for alcoholic beverages. * **Canteen Services Department (CSD):** A significant channel for sales to armed forces personnel. India Glycols is actively getting its brands approved in CSD and has seen **+70% growth in Paramilitary Sales**. Globus Spirits intends to expand its P&A availability to **almost 17 states with the addition of CSD**. Radico Khaitan's Royal Ranthambore achieved a **10% market share in CSD during September 2025**. * **Biofuel Blending Program:** For ethanol producers, this is a critical application. The government's program aims for **~20% blending by FY25-26** and is exploring **~27% beyond 2026**. India Glycols supplied **15 Crore liters of ethanol in FY24-25** and the industry supplied **~1,100 Crore liters**. This program offers significant forex savings (**₹43,000 Cr in FY24-25**) and benefits farmers. * **Industrial Applications (Chemicals):** For diversified players like India Glycols, ethanol can also be used as a feedstock for chemicals. The company is evaluating using its own ethanol for chemicals if market prices for biofuels drop due to excess capacity.

**Market Maturity and Lifecycle Stage:** The Indian alcoholic beverages market appears to be in a **growth phase**, particularly the premium and super-premium segments. The strong double-digit growth rates across companies, coupled with a relentless focus on premiumization and innovation, suggest a market that is far from mature. The increasing disposable incomes, evolving consumer aspirations, and a younger demographic are driving this growth. The ethanol blending program is also a relatively new and rapidly expanding segment, indicating a growth stage for the biofuel component of the industry.

**Industry Value Chain and Ecosystem:** The value chain involves: 1. **Raw Material Sourcing:** Grains (maize, rice), molasses, and other agricultural produce for ethanol and ENA (Extra Neutral Alcohol) production. Companies like India Glycols and Globus Spirits have integrated manufacturing, sourcing these raw materials. 2. **Manufacturing/Distillation:** Production of ENA, IMFL, Country Liquor, and other spirits. Integrated players have distilleries. 3. **Blending/Bottling:** ENA is blended with other ingredients to create finished alcoholic beverages. 4. **Distribution:** A complex, state-regulated process involving state monopolies, licensed distributors, and retail outlets. Companies are actively expanding their distribution networks. 5. **Marketing & Sales:** Brand building, advertising, and sales promotion (A&SP). Radico Khaitan expects to maintain A&SP spend around **6% to 8% of IMFL revenues**. Globus Spirits is investing in ENP (Expenditure on New Product Development) to fuel brand growth. 6. **Retail/Consumption:** On-premise (bars, restaurants) and off-premise (liquor stores).

The ecosystem also includes regulatory bodies (state excise departments), farmers (suppliers of raw materials), and technology providers for distillation and processing. The de-merger plan of India Glycols into three entities (India Glycols, IGL Spirits, Ennature Bio Pharma) highlights the strategic importance of segregating and focusing on different parts of this value chain and ecosystem.

B. FINANCIAL & ECONOMIC PROFILE

The financial performance of the companies analyzed indicates a robust and improving economic profile for the alcoholic beverages sector, driven by strong revenue growth, margin expansion, and a focus on debt reduction.

**Industry Aggregate Revenue Scale and Growth Trajectory:** While aggregate industry revenue is not provided, the individual company performances offer a strong indication of the sector's growth trajectory. * **Radico Khaitan Limited:** Demonstrates impressive top-line growth. * **Q2 FY26 Net Revenue from Operations:** ₹1,493.9 Crore, a **+33.8% increase year-on-year** from ₹1,116.3 Crore in Q2 FY25. * **H1 FY26 Net Revenue from Operations:** ₹3,000.0 Crore, a **+33.2% increase year-on-year** from ₹2,252.8 Crore in H1 FY25. * Gross Revenue also grew significantly: **+29.4% in Q2 FY26 y-o-y** and **+26.9% in H1 FY26 y-o-y**. * **India Glycols Limited (Consolidated):** Shows consistent growth across its diversified segments. * **Q2 FY26 Total Income from Operations:** ₹2,414 Crore, a **+12.4% increase year-on-year** from ₹2,148 Crore in Q2 FY25. * **H1 FY26 Sales:** ₹4,920 Crore, a **+11% increase year-on-year** from ₹4,433 Crore in H1 FY25. * Net Revenue growth was **+14% in Q2 FY26 y-o-y** and **+11% in H1 FY26 y-o-y**. * **Globus Spirits Limited (Standalone):** Also reports positive revenue growth. * **Q2 FY26 Revenue:** ₹661 Crore, a **+4% increase year-on-year**. * **H1 FY26 Revenue:** ₹1,360 Crore, a **+6% increase year-o-y**. The growth rates for Globus are lower than Radico and IGL, but its consumer business (especially P&A) shows higher growth.

The overall trend suggests a robust growth trajectory for the sector, with premium segments leading the charge in value growth, and integrated players benefiting from both liquor and industrial/biofuel demand.

**Profitability Levels Across Companies (Gross Margin, EBITDA, Net Margin):** Profitability has shown significant improvement across the board, driven by higher volumes, premiumization, and stable raw material costs.

• **Radico Khaitan Limited:** Exhibits strong and improving margins.
• **India Glycols Limited (Consolidated):** Demonstrates consistent margin improvement over several years.
• **Globus Spirits Limited (Standalone):** Shows significant EBITDA recovery and improved manufacturing margins.

**Range of Margins with Median and Outliers Noted:** * **EBITDA Margin:** * **Range:** 9% (Globus Spirits) to 15.8% (Radico Khaitan). * **Median:** Approximately 14.6% (India Glycols). * **Outliers:** Globus Spirits at the lower end, potentially due to its integrated manufacturing model and a different product mix, but showing strong growth in EBITDA. Radico Khaitan at the higher end, reflecting its focus on branded IMFL and premiumization. * **Net Income Margin:** * **Range:** 5.9% (India Glycols) to 9.3% (Radico Khaitan). * **Median:** Approximately 7.6% (midpoint between IGL and Radico). * **Gross Margin:** Radico Khaitan reported **43.6%** in Q2 FY26. Other companies do not explicitly state gross margin, but their EBITDA margins suggest varying gross profitability depending on their cost structures and product mix.

**Return Profiles (ROCE, ROE, ROIC) by Company:** Specific return ratios like ROCE, ROE, and ROIC are not explicitly provided in the extracted data. However, the strong growth in net profit and EBITDA, coupled with efforts in debt reduction, would generally lead to an improvement in these return metrics.

**Working Capital Characteristics and Cash Conversion Cycles:** Details on working capital and cash conversion cycles are not explicitly provided. However, Radico Khaitan's reduction in Net Debt by **₹146.1 Crore vs. March 2025** suggests efficient cash flow management and potentially improved working capital. Globus Spirits' mention of "strong cash turns" in its R&O category implies efficient working capital management in that segment.

**Capital Intensity Requirements:** * **Radico Khaitan:** No specific CAPEX figures are provided, but the company's focus on "consistent brand investments" and "strong innovation pipeline" suggests ongoing capital allocation towards brand building and new product development, which can be less capital-intensive than manufacturing capacity expansion. * **India Glycols:** * **Biofuels:** Adding capacity to service the blending program implies capital investment in distilleries. * **New Performance Chemicals (NSU Segment):** Investment of **~₹80-85 Crore** has been made. Management expects incremental CAPEX of **₹10-50 Crore in the next one year** for performance chemicals, noting it is "not a CAPEX-intensive business." * **Ennature Biopharma:** US FDA approval for its plant suggests past capital investment in quality and compliance. * **Globus Spirits:** * **New UP Distillery:** A significant capital investment, expected to start up in Q3 FY26. * **Manufacturing Realignment:** Work ongoing for R&O in West Bengal, suggesting further investment. * **Fundraise:** Board is considering a fundraise for "organic and inorganic growth opportunities in consumer business," indicating future capital requirements.

Integrated players like India Glycols and Globus Spirits, with their distillery operations and chemical segments, tend to be more capital-intensive than pure-play IMFL marketers like Radico Khaitan, which might outsource some manufacturing. However, all companies are making strategic investments to support growth.

**Revenue Quality (Recurring vs One-time, Contract Length):** * **Alcoholic Beverages:** Revenue is generally recurring, driven by consistent consumer demand. The nature of the business involves repeat purchases. * **Biofuels (India Glycols):** The ethanol blending program provides a stable, government-backed demand, making this revenue stream highly predictable and recurring, often with long-term policy support. * **Chemicals (India Glycols):** Partnerships with major global players like BASF, Newpark, Dow suggest long-term supply agreements, contributing to recurring revenue. The "strong pipeline" for new performance chemicals also points to future recurring streams.

The sector generally benefits from high revenue quality due to the habitual nature of consumption and government-backed programs.

C. COMPETITIVE STRUCTURE & DYNAMICS

The alcoholic beverages sector in India is characterized by a mix of established domestic players, multinational corporations, and emerging niche brands. The competitive landscape is shaped by product differentiation, brand strength, distribution reach, and regulatory acumen.

**Number of Players and Market Concentration:** The market features a significant number of players, but concentration exists in specific categories. The presence of "Millionaire's Club" brands (those selling over 1 million cases annually) indicates that a few strong brands dominate volume in certain segments. * **Radico Khaitan:** A major player with several leading brands. * **India Glycols:** A diversified entity with a strong regional presence in potable spirits (UP, Uttarakhand) and a significant role in the ethanol market. * **Globus Spirits:** An integrated manufacturer with a growing consumer business, particularly strong in R&O and expanding in P&A. The data does not provide an exhaustive list of all players, but the competitive actions of these three companies suggest a dynamic environment.

**Market Share Distribution (with specific percentages):** Specific market share data highlights areas of strong leadership for Radico Khaitan: * **Morpheus Super Premium Brandy:** India's largest selling premium brandy with **over 60% market share**. This is a dominant position in a specific premium sub-segment. * **Jaisalmer Indian Craft Gin:** Holds a **50% market share of the luxury gin space**. This indicates strong positioning in a high-growth, niche premium category. * **Magic Moments Vodka:** Accounts for **60% of the overall vodka market share**. This is a commanding position in the vodka segment. * **8PM Premium Black Whisky:** Became the **eighth brand to enter the prestigious Millionaire's Club in FY2025** with **1.9 million cases sold**. This signifies its strong volume performance and competitive standing in the whisky market. * **Royal Ranthambore Heritage Collection Whisky:** Achieved a market share of **10% in CSD during September 2025**. This indicates a growing presence in the defense services channel.

For India Glycols: * **Country Liquor & IMFL:** Maintained leadership in both segments in UP and Uttarakhand. This suggests strong regional dominance in key markets. * **Vodka Segment:** Among the top three in UP, Delhi, Uttarakhand, Chandigarh. This indicates a strong competitive position in the vodka category in Northern India.

For Globus Spirits: * **Millionaire Brands:** Has **3 millionaire brands** in its portfolio, indicating success in achieving significant volume scale for certain products.

These figures illustrate that while the market has many players, certain brands and companies have carved out significant leadership positions in their respective categories.

**Competitive Intensity Assessment (Porter's 5 Forces style):** * **Threat of New Entrants (Moderate to High):** While capital requirements for distilleries and distribution networks are high (especially for national scale), the allure of the growing Indian market, particularly the premium segment, attracts new players and brands. Regulatory hurdles (state-specific licenses, approvals) act as a significant barrier. However, the rise of craft spirits and smaller players indicates that entry is possible, especially in niche segments. * **Bargaining Power of Buyers (Moderate):** Consumers have choices, especially in the premium segments where brand loyalty can be strong but also subject to new trends and innovations. In the regular and country liquor segments, price sensitivity can be higher. Government procurement (e.g., CSD) can exert significant bargaining power. * **Bargaining Power of Suppliers (Moderate):** Raw material suppliers (grains, molasses) have some power, but integrated players like IGL and Globus mitigate this by having their own ethanol production. The stability of ENA and grain pricing, as noted by Radico, suggests a balanced power dynamic currently. However, supply disruptions (e.g., Gloriosa seed for Thiocolchicoside mentioned by IGL) can impact specific segments. * **Threat of Substitute Products (Low):** While non-alcoholic beverages exist, for consumers seeking alcoholic beverages, direct substitutes are limited. Different categories of alcohol (beer, wine, spirits) can substitute for each other to some extent, but within the spirits category, the threat of direct substitution is low. * **Rivalry Among Existing Competitors (High):** This is the most intense force. Companies are constantly innovating, launching new products, expanding distribution, and investing heavily in advertising and sales promotion (A&SP). * **Premiumization:** All players are aggressively pursuing premiumization, leading to intense competition for consumer mindshare and shelf space in higher-value segments. * **Geographic Expansion:** Companies are vying for market share in new states and channels (e.g., CSD, travel retail). * **Innovation:** A continuous stream of new product launches (e.g., new whiskies, flavored vodkas, craft gins, luxury vodkas, beers) indicates fierce competition to capture evolving consumer tastes. * **Pricing:** While premium segments allow for better pricing, the regular and country liquor segments can be price-sensitive, leading to competitive pricing strategies.

**Entry Barriers and Competitive Moats:** * **Regulatory Complexity:** State-specific excise policies, licensing requirements, and distribution regulations are significant entry barriers. Navigating this complex landscape requires deep local knowledge and strong relationships. * **Distribution Network:** Establishing a wide and efficient distribution network across multiple states is capital-intensive and time-consuming. Existing players have a significant advantage here. * **Brand Equity:** Building strong, recognizable brands that resonate with consumers requires substantial and sustained marketing investment. Radico's "Millionaire's Club" brands and high market shares are examples of strong brand moats. * **Integrated Manufacturing:** For players like IGL and Globus, owning distilleries provides cost advantages, quality control, and supply security for ENA, which is a key raw material. * **Capital Requirements:** Setting up distilleries, bottling plants, and establishing national distribution requires substantial capital.

**Pricing Power Dynamics and Pricing Trends:** * **Premium & Luxury Segments:** Companies have greater pricing power in these segments due to brand equity, perceived value, and consumer willingness to pay for quality and experience. The focus on premiumization by all companies is a testament to this. * **Regular & Country Liquor:** Pricing power is more constrained, often influenced by state regulations and competition. Globus Spirits expects roughly a **5% per year price hike** in R&O, which "can come once in two years as 10%," indicating a slower and more managed pricing strategy in this segment. * **Raw Material Prices:** Stable or benign raw material prices (ENA, grains) provide a favorable environment for maintaining or improving margins, which can indirectly influence pricing strategies.

**Differentiation Strategies Employed:** * **Brand Portfolio & Innovation:** * **Radico Khaitan:** Focuses on a diverse portfolio with strong premium brands (Morpheus, Jaisalmer, Magic Moments, Rampur) and continuous innovation (Morpheus Rare Luxury Whisky, The Spirit of Kashmyr, Magic Moments Flavors of India). * **Globus Spirits:** Emphasizes an "award-winning portfolio" in P&A (Terai, DOAAB, Mountain Oak) and new product launches (DOAAB Expression 02, Luxury Terai Vodka, Carib Beer). * **India Glycols:** Partnering with Amrut for premium brands and expanding its own premium offerings. * **Geographic Focus & Distribution:** * **Radico Khaitan:** Expanding international reach and domestic distribution for premium brands. * **India Glycols:** Leveraging regional leadership in UP/Uttarakhand and expanding into new states like Kerala and CSD. * **Globus Spirits:** Strong focus on UP as a growth driver and aiming for presence in 17 states for P&A, becoming a "national beverage platform." * **Integrated Manufacturing:** India Glycols and Globus Spirits benefit from backward integration into ethanol production, offering cost efficiencies and supply chain control. * **Diversification:** India Glycols' significant Biofuels and Chemicals segments provide diversification, reducing reliance solely on the alcoholic beverages market. * **Consumer Experience:** Globus Spirits aims to transform into an "innovative and fast-growing alcobev player with a consumer focus." Delhi's expected new policy opening up to "more consumer premium and luxury experiences" aligns with this.

**Consolidation Trends and M&A Activity:** The data does not explicitly mention widespread M&A activity or consolidation trends. However, Globus Spirits' board considering a fundraise for "organic and inorganic growth opportunities in consumer business" suggests that M&A could be a part of its future strategy. India Glycols' de-merger plan is a form of internal restructuring to streamline operations and unlock value, rather than external M&A.

**Competitive Advantages of Each Player:** * **Radico Khaitan:** * **Strong Brand Equity & Market Leadership:** Dominant market shares in key premium categories (Morpheus Brandy, Jaisalmer Gin, Magic Moments Vodka). * **Premiumization Focus:** A well-established strategy with a strong innovation pipeline catering to evolving consumer tastes. * **International Presence:** Significant global footprint for its luxury brands (Rampur, Jaisalmer, Sangam). * **Efficient Operations:** Demonstrated by strong margin expansion (EBITDA +45.4% y-o-y in Q2 FY26). * **India Glycols Limited:** * **Diversified Business Model:** Significant revenue streams from Biofuels and Chemicals, providing stability and reducing reliance on the volatile liquor market. * **Integrated Manufacturing:** Ethanol production capacity supports both biofuel blending and captive use for chemicals/potable spirits. * **Regional Leadership:** Strong hold in Country Liquor and IMFL in key states like UP and Uttarakhand. * **Government Policy Tailwinds:** Direct beneficiary of the ethanol blending program. * **Debt Reduction Initiative:** Fundraise to reduce debt will improve financial health and reduce interest costs. * **Globus Spirits Limited:** * **Integrated Manufacturing Base:** "Strong manufacturing base" enables "industry-leading margins" in R&O and efficient cost structures. * **Strategic Focus on UP:** Leveraging its "huge home turf advantage" with a new distillery in UP. * **Rapid P&A Growth:** Demonstrating strong capability to grow in the premium segment (+55% H1 FY26 y-o-y). * **Business Transformation:** Clear vision to become an "innovative and fast-growing alcobev player with a consumer focus."

D. OPERATIONAL CHARACTERISTICS

The operational characteristics of the alcoholic beverages sector are largely defined by manufacturing efficiency, supply chain management, and the ability to adapt to diverse regulatory environments. The data highlights varying degrees of integration and operational focus among the companies.

**Capacity and Utilization Trends Across Companies:** * **India Glycols Limited:** * **Ethanol Capacity:** Actively "adding capacity to service blending program through multiple feedstocks (molasses, grain, corn)." This indicates a strategic expansion of its ethanol production capabilities, driven by the government's blending targets. * **Ennature Biopharma Plant:** Received US FDA approval, suggesting high standards of manufacturing and quality control. * **Globus Spirits Limited:** * **Maize-based Ethanol Production:** Constitutes "almost 70% to 75% of total" ethanol production, indicating a significant reliance on this feedstock. * **Samalkha Plant Utilization:** Operating at **85% utilization**, which is a healthy level, suggesting efficient use of existing assets. * **New UP Distillery:** Expected to start up "within Q3 FY26" and "on schedule." Management anticipates a "rapid" ramp-up, indicating a significant increase in manufacturing capacity for the consumer business in a key market. * **Manufacturing Realignment:** Work ongoing for R&O in West Bengal, which could involve optimizing existing capacity or setting up new facilities.

**Production Economics and Cost Structures:** * **Raw Material Prices:** A critical component of cost structure. * **Radico Khaitan:** Notes a "stable raw material scenario" and is "optimistic that the pricing scenario for ENA and grains will remain stable to benign going forward during FY2026." This is a positive for cost management. * **India Glycols:** Mentions "positive raw material and fuel prices for liquor business." However, also notes risks related to global crude prices affecting chemicals and potential "excess capacity in ethanol industry" which could lead to lower market-driven prices for ethanol. * **Globus Spirits:** Explicitly states "raw material prices (maize, rice) coming down," and "significant FCI rice availability." This directly contributes to improved manufacturing margins. * **Manufacturing Margins:** * **Globus Spirits:** Manufacturing business margins have significantly improved from **₹2 per litre in H1 FY21 to ₹5.4 per litre in H1 FY26**. This demonstrates enhanced production economics, likely due to lower raw material costs and higher capacity utilization. * **Cost of Goods Sold (COGS):** * **Radico Khaitan:** COGS increased by **+33.8% in Q2 FY26 y-o-y** and **+30.9% in H1 FY26 y-o-y**, roughly in line with net revenue growth, suggesting stable unit economics. * **Operating Expenses:** * **Employee Benefit:** Radico Khaitan saw a **+14.1% increase in Q2 FY26 y-o-y** and **+11.8% in H1 FY26 y-o-y**. * **Selling & Distribution:** Radico Khaitan increased S&D expenses by **+46.1% in Q2 FY26 y-o-y** and **+46.8% in H1 FY26 y-o-y**. This higher growth rate compared to revenue indicates increased investment in market reach and brand promotion. * **Other Operating Expenses:** Radico Khaitan's other operating expenses grew by **+20.7% in Q2 FY26 y-o-y** and **+24.0% in H1 FY26 y-o-y**. * **Advertising & Sales Promotion (A&SP):** Radico Khaitan's A&SP was **6.1% of IMFL sales in Q2 FY26** (vs 5.6% in Q2 FY25). Management expects to maintain this spend around **6% to 8% of IMFL revenues** to drive sales momentum. This is a critical investment for brand building in the competitive liquor market.

**Supply Chain Structure and Dependencies:** * **Backward Integration:** India Glycols and Globus Spirits benefit from backward integration into ethanol production, reducing reliance on external ENA suppliers. This provides greater control over quality, cost, and supply security. * **Multi-feedstock Strategy (IGL):** India Glycols is adding capacity to service the blending program "through multiple feedstocks (molasses, grain, corn)," which diversifies its raw material base and reduces dependency on any single source, enhancing supply chain resilience. * **Logistics & Distribution:** The "route-to-market change in Andhra Pradesh" mentioned by Radico Khaitan highlights the importance of efficient and adaptable distribution channels. The expansion of distribution for various brands by Radico and Globus underscores this. * **Global Supply Chains:** India Glycols' chemical business is exposed to global supply chain dynamics, with "global trade situation affecting chemicals" and "50% tariff in U.S. impacting JV and some direct/indirect products" being noted risks.

**Technology Landscape and Innovation Pace:** * **Product Innovation:** All companies are actively innovating with new product launches and refreshed packaging. * **Radico Khaitan:** Morpheus Rare Luxury Whisky, The Spirit of Kashmyr Vodka, Magic Moments Flavors of India, new look for 8PM Premium Black Whisky, re-launched After Dark Blue Whisky. * **Globus Spirits:** DOAAB Expression 02 (Indian single malt matured in Mizunara casks), Luxury Terai Vodka (amethyst filter), Carib Beer. * **India Glycols:** Bio-based amines (first company globally, commercial sales expected Q3/Q4 FY26), evaluating new technologies like SAF (Sustainable Aviation Fuel) and green chemistries through synthetic biology and fermentation. This indicates a strong focus on advanced, sustainable technologies in its chemical segment. * **Manufacturing Technology:** The operation of distilleries and chemical plants implies continuous investment in process technology for efficiency and quality.

**Operational Efficiency Benchmarks:** * **EBITDA Margin:** A key indicator of operational efficiency. Radico Khaitan's EBITDA margin of **15.8% in Q2 FY26** and India Glycols' **14.6%** indicate strong operational performance. Globus Spirits' **9%** is lower but shows significant year-on-year improvement (+89% in Q2 FY26 EBITDA). * **Manufacturing Margins (per litre):** Globus Spirits' improvement from **₹2 to ₹5.4 per litre** is a direct measure of enhanced manufacturing efficiency and cost control. * **Capacity Utilization:** Globus Spirits' Samalkha plant operating at **85% utilization** is a good benchmark for efficient asset use.

**Key Performance Indicators (Company-specific and Industry Averages):** * **Volume Growth (Million Cases):** * **Radico Khaitan:** Total Own Volume grew **+48.8% y-o-y in Q2 FY26** to **8.93 million cases**. Prestige & Above volume grew **+21.7% y-o-y**. Regular & Others volume grew an exceptional **+79.6% y-o-y**. * **Globus Spirits:** R&O volumes grew from **12.3 million cases in FY21 to 15.8 million cases in FY25**. * **Prestige & Above as % of Total Own Volume:** * **Radico Khaitan:** **43.6% in Q2 FY26** (down from 53.2% in Q2 FY25, likely due to high R&O growth). * **Globus Spirits:** P&A as % of total consumer revenues is **over 15% in H1 FY26** (up from under 5% in H1 FY23), indicating a successful shift towards premium. * **IMFL as % of Total Revenue:** Radico Khaitan: **70.1% in Q2 FY26**. * **A&SP as % of IMFL Sales:** Radico Khaitan: **6.1% in Q2 FY26** (target 6-8%). * **Debt Levels:** Radico Khaitan's Net Debt of **₹427.4 Crore** (as of Sep 30, 2025) and reduction of **₹146.1 Crore vs. March 2025**. India Glycols' Long-term Debt of **~₹1,400 Crore** (as of Sep 30, 2025), with a planned reduction of **₹600 Crore** for India Glycols and **₹800 Crore** for IGL Spirits post de-merger.

**Asset Efficiency Metrics:** While specific asset turnover ratios are not provided, the high capacity utilization (Globus Samalkha at 85%) and the focus on "driving profitable growth, enhancing cash flows" (Radico) and "strong cash turns" (Globus R&O) suggest an emphasis on efficient asset utilization and cash generation. India Glycols' statement that its performance chemicals business is "not a CAPEX-intensive business" but expects significant revenue growth implies high asset efficiency in that segment.

E. GROWTH DYNAMICS & DRIVERS

The alcoholic beverages sector in India is experiencing robust growth, propelled by a confluence of factors ranging from evolving consumer preferences and demographic shifts to supportive government policies and strategic corporate initiatives.

**Historical Growth Trajectory (3-5 year view with specific rates):** While a full 3-5 year historical view for all metrics isn't provided for every company, the available data indicates a strong upward trend. * **Radico Khaitan:** * Net Revenue from Operations grew **+33.8% in Q2 FY26 y-o-y** and **+33.2% in H1 FY26 y-o-y**. * EBITDA grew **+45.4% in Q2 FY26 y-o-y** and **+50.3% in H1 FY26 y-o-y**. * Net Profit grew **+69.1% in Q2 FY26 y-o-y** and **+71.8% in H1 FY26 y-o-y**. These figures represent an acceleration of growth, especially in profitability. * **India Glycols:** * Consolidated Sales grew **+11% in H1 FY26 y-o-y**. * Consolidated EBITDA grew **+25% in H1 FY26 y-o-y**. * EBITDA Margin has shown a consistent upward trend from **~11% in FY22 to ~15% currently**. This indicates sustained growth and efficiency improvements over a 3-4 year period. * **Globus Spirits:** * R&O volumes grew from **12.3 million cases in FY21 to 15.8 million cases in FY25**, representing a CAGR of approximately **6.5%** over four years. * P&A in total consumer revenues increased from **under 5% in H1 FY23 to over 15% in H1 FY26**, demonstrating rapid growth in this segment. * Manufacturing business margins improved from **₹2 per litre in H1 FY21 to ₹5.4 per litre in H1 FY26**, indicating significant operational improvements over five years.

**Current Growth Rates and Acceleration/Deceleration:** The current period (FY26) shows an acceleration in growth for most key metrics, particularly for Radico Khaitan and India Glycols' profitability. * **Radico Khaitan:** Net Revenue growth of **+33.8% (Q2 y-o-y)** and EBITDA growth of **+45.4% (Q2 y-o-y)** are very strong, indicating an accelerating growth phase. * **India Glycols:** Consolidated EBITDA growth of **+33% (Q2 y-o-y)** and PAT growth of **+31% (Q2 y-o-y)** also suggest an acceleration in profitability. * **Globus Spirits:** While overall revenue growth is modest (**+4% Q2 y-o-y**), its EBITDA growth of **+89% (Q2 y-o-y)** indicates a significant acceleration in profitability, driven by improved manufacturing margins and P&A growth.

**Volume vs Price Contribution to Growth:** * **Volume Growth:** A significant driver, especially in the Regular & Others category. Radico Khaitan's **+79.6% y-o-y volume growth in Regular & Others in Q2 FY26** (due to AP route-to-market change) highlights the impact of volume. Globus Spirits' R&O volumes also show consistent growth. * **Price Contribution / Premiumization:** This is a major value driver. * **Radico Khaitan:** Prestige & Above revenue grew **+24.3% y-o-y in Q2 FY26**. The company's overall strategy is "continued focus on premiumization." * **Globus Spirits:** Prestige & Above revenues grew an impressive **+55% y-o-y in H1 FY26**. The increasing contribution of P&A to total consumer revenues (over 15% vs under 5% in H1 FY23) clearly indicates that premiumization is driving significant value growth. * **India Glycols:** Mentions "premiumization in Potable Spirits" as a growth driver, supported by partnerships like Amrut. The data suggests that both volume expansion (especially in the mass market and through distribution changes) and price realization (through premiumization) are contributing to overall growth, with premiumization driving higher value and margin expansion.

**Organic vs Inorganic Growth Components:** * **Organic Growth:** The primary driver for all companies, stemming from new product launches, brand investments, distribution expansion, and market penetration. * Radico Khaitan's "strong innovation pipeline" and "consistent brand investments" are organic growth strategies. * India Glycols' expansion of ethanol capacity, new performance chemicals, and geographical expansion for spirits are organic. * Globus Spirits' new UP distillery, P&A brand launches, and distribution build-out are organic. * **Inorganic Growth:** Less explicitly mentioned, but Globus Spirits' board is considering a fundraise for "organic and inorganic growth opportunities in consumer business," indicating potential future M&A. India Glycols' de-merger is a structural change, not external inorganic growth.

**Geographic Expansion Opportunities and Progress:** All companies are actively pursuing geographic expansion: * **Radico Khaitan:** Expanding distribution for Royal Ranthambore, Magic Moments, After Dark Blue Whisky. Its luxury brands (Rampur, Jaisalmer, Sangam) have a significant international presence (50, 40, 40 countries respectively). * **India Glycols:** Expanding IMFL market geographically (e.g., Kerala, where it launched rum and brandy). Getting brands approved in CSD. * **Globus Spirits:** Intends to expand P&A availability to "almost 17 states with the addition of CSD." Aims to have "three very strong platform states (including UP)" and become a "national beverage platform." P&A brands are currently available in 10 states.

**Product/Service Innovation Pipeline:** Innovation is a core strategy across the sector. * **Radico Khaitan:** * **Whisky:** Morpheus Rare Luxury Whisky (super-premium, available in 4 states, 8 more planned by FY26 end), new look for 8PM Premium Black Whisky, re-launched After Dark Blue Whisky. * **Vodka:** The Spirit of Kashmyr (luxury, 7 states, 4 more planned by FY26 end), Magic Moments Flavors of India (Jamun SpicyMint, Alphonso Mango, Thandaai), Magic Moments Music Studio partnership, Magic Moments Pocket Pack. * **India Glycols:** * **Chemicals:** First company globally to make bio-based amines (commercial sales Q3/Q4 FY26), evaluating SAF and green chemistries. * **Potable Spirits:** Amrut partnership (8-10 brands), launched rum and brandy in Kerala, extended "Amazing" vodka brand to whiskey, White spirit Zumba Lemoni and Soulmate Blu approved for CSD. * **Ennature Biopharma:** Focus on building branded nutraceuticals portfolio. * **Globus Spirits:** * **Whisky:** DOAAB Expression 02: The Old Man & The Blossom (Indian single malt, Mizunara casks, limited edition). * **Vodka:** Luxury Terai Vodka (amethyst filter). * **Beer:** Carib Beer (strong beer, cans only, launched in UP). * **Future:** Studying the Tequila category.

**Adjacent Market Opportunities:** * **Biofuels (Ethanol Blending):** A significant adjacent market for integrated players. India Glycols' Biofuels segment grew **+63% y-o-y in Q2 FY26**. The government's target of **~20% blending by FY25-26** and potential **~27% beyond 2026** represents a massive and stable growth opportunity. * **Performance Chemicals (Bio-based):** India Glycols is actively developing new performance chemicals, including bio-based amines. Management expects this business to "double revenue and contribution on a small base for the year, and for H2," and potentially grow "10x the business over next few years." * **Branded Nutraceuticals:** India Glycols' Ennature Biopharma segment is focusing on building a branded nutraceuticals portfolio, expecting **40%-50% margins**. * **RTD (Ready-To-Drink) Market:** Globus Spirits notes the "RTD market evolving," indicating a potential adjacent opportunity, though it also acknowledges competition. * **Travel Retail:** Radico Khaitan's luxury brands are available in 30-35 travel retail locations, and Globus Spirits includes "travel retail and CSD" as part of its P&A growth pillars.

**Customer Acquisition and Penetration Trends:** * **Evolving Consumer Aspirations:** Radico Khaitan highlights "Indian consumer aspirations evolving" as a growth driver, leading to higher demand for premium products. * **Rural Economy:** India Glycols notes "rural economy and farmers' incomes" as a growth driver, particularly relevant for the country liquor and regular IMFL segments. * **New Distribution Channels:** Expansion into CSD and new states helps penetrate new customer bases. * **Youth Demographics:** The younger population is often more open to new brands, categories (e.g., gin, flavored vodka), and premium experiences, driving innovation and growth.

F. RISK LANDSCAPE

The alcoholic beverages sector, despite its robust growth, is exposed to a range of risks, from regulatory uncertainties and economic sensitivities to supply chain vulnerabilities and intense competition.

**Industry-Wide Systematic Risks:** * **Economic Slowdown/Recession:** While not explicitly mentioned as a current risk, a significant downturn in the economy could impact consumer discretionary spending, particularly on premium and luxury alcoholic beverages. However, the regular and country liquor segments might be more resilient or even see a shift in consumption patterns. * **Inflation:** Rising inflation can increase operational costs (raw materials, energy, labor) and potentially dampen consumer purchasing power. While raw material prices are currently stable/benign, this is a cyclical factor. * **Health & Social Concerns:** Increasing awareness about health risks associated with alcohol consumption, or social movements against alcohol, could lead to reduced demand or stricter regulations.

**Cyclicality and Economic Sensitivity:** * **Seasonal Demand:** India Glycols notes "seasonal demand for liquor (Nov-Mar)," indicating a cyclical pattern in the potable spirits business. Q2 is described as a "lean Q2 for liquor business." * **Raw Material Cycles:** The prices of grains (maize, rice), molasses, and ENA are subject to agricultural cycles and government policies, impacting cost structures. While currently favorable, this can reverse. * **Crude Oil Prices:** India Glycols' chemical business is sensitive to crude oil prices, as lower crude prices can make petrochemical alternatives cheaper, impacting demand and pricing for its bio-based chemicals. The company expects crude prices to "harden," which would be favorable.

**Regulatory and Policy Risks by Geography:** This is arguably the most significant risk for the Indian alcoholic beverages sector, given that alcohol is a state subject. * **State Excise Policies:** * **Unfavorable Policies:** Globus Spirits notes that "policy in West Bengal, Delhi, and Haryana not favorable for R&O category currently." Such policies can restrict growth or impact profitability. * **Policy Gaps/Changes:** Globus Spirits mentions a "previous policy gap" in Delhi that "tempered industry volumes." While a "new robust policy expected end of FY25 (April '26)" is an opportunity, policy changes always carry uncertainty. * **Prohibition:** "Prohibition policy in Bihar (hard to predict changes)" is a direct threat, as it eliminates a market entirely. * **Route-to-Market Changes:** While Radico Khaitan benefited from a "route-to-market change in Andhra Pradesh," such changes can also be disruptive if unfavorable. * **Ethanol Blending Program:** While a major growth driver for India Glycols, risks include: * **Policy Reversal/Slowdown:** Although the government's commitment seems strong (**20% blending by FY25-26, potential 27% beyond 2026**), any change in policy could impact demand for ethanol. * **Excess Capacity:** India Glycols mentions "excess capacity in ethanol industry," which could lead to "market-driven prices lower than government-paid for biofuels," impacting profitability. * **International Trade Policies:** * **Global Trade Situation:** Radico Khaitan notes that the "global trade situation posed short-term challenges for exports." * **Tariffs:** India Glycols highlights a "50% tariff in U.S. impacting JV and some direct/indirect products," which directly affects its chemical business and profitability.

**Technology Disruption Threats:** * **New Production Methods:** While not explicitly mentioned, advancements in fermentation or synthetic biology could potentially disrupt traditional alcohol production methods, though this is a longer-term risk. India Glycols is already evaluating "green chemistries through synthetic biology and fermentation," suggesting it is proactively addressing this. * **RTD Competition:** Globus Spirits notes "competition in RTD market," indicating that new product formats and technologies in ready-to-drink beverages could pose a threat to traditional spirits.

**ESG and Sustainability Challenges:** * **Environmental Impact:** Distillery operations can be water and energy-intensive, and generate effluent. Regulatory pressure for sustainable practices is increasing. India Glycols' focus on "bio-based amines," "SAF," and "green chemistries" indicates a move towards sustainability. * **Social Responsibility:** The industry faces scrutiny regarding responsible consumption, underage drinking, and advertising practices.

**Supply Chain Vulnerabilities:** * **Raw Material Supply:** Disruptions in agricultural supply due to weather, disease, or geopolitical events can impact raw material availability and prices. India Glycols mentions "disruption in Gloriosa seed supply" impacting the Thiocolchicoside market. * **Logistics:** Infrastructure bottlenecks or disruptions (e.g., "flooding in Haryana" temporarily impacting Globus Spirits' plant) can affect production and distribution. * **Global Dependencies:** For companies with international operations or sourcing, global events (e.g., Russia-Ukraine war impacting nicotine sales for IGL) can create supply chain risks.

**Competitive Threats (New Entrants, Substitutes):** * **Intense Rivalry:** As discussed in Section C, rivalry is high, with continuous innovation, brand investments, and geographic expansion by competitors. * **New Entrants:** The growth in premium segments attracts new players, including craft distilleries and international brands. * **Substitution within Alcohol Categories:** While direct substitutes for alcohol are low, consumers can shift between categories (e.g., from whisky to gin, or from spirits to beer/wine), requiring companies to maintain diverse portfolios and adapt to trends.

**Customer Concentration Risks:** * **Government/CSD Sales:** While CSD is a growth channel, over-reliance on a single large buyer (like the government for ethanol or CSD for liquor) can create concentration risk if procurement policies change. * **Regional Concentration:** Companies with strong dominance in specific states (e.g., IGL in UP/Uttarakhand) face risks if policies in those states become unfavorable.

G. CAPITAL ALLOCATION & INVESTOR RETURNS

Capital allocation strategies in the alcoholic beverages sector are geared towards driving growth, enhancing profitability, and improving financial health, ultimately aiming to deliver superior investor returns. Key areas of focus include strategic CAPEX, brand investments, debt management, and potential M&A.

**Capex Trends and Requirements (Growth vs Maintenance):** * **Growth CAPEX:** All companies are undertaking CAPEX to support expansion. * **India Glycols:** * "Adding capacity to service blending program" for biofuels, indicating growth CAPEX in distilleries. * Investment of **~₹80-85 Crore** in the NSU (New Performance Chemicals) segment. Expects "incremental CAPEX of ₹10-50 Crore in next one year for performance chemicals," noting it's "not a CAPEX-intensive business." This suggests strategic, targeted investments in high-growth, high-margin areas. * **Globus Spirits:** * Significant investment in a "new distillery starting up in Uttar Pradesh (expected within Q3 FY26)." This is a major growth CAPEX to expand manufacturing capacity in a key market. * "Manufacturing realignment" work for R&O in West Bengal also implies CAPEX. * **Maintenance CAPEX:** While not explicitly detailed, ongoing operations in distilleries and chemical plants would require regular maintenance CAPEX to ensure smooth functioning and compliance. * **Overall Trend:** The trend is towards strategic growth CAPEX, particularly in expanding ethanol capacity (for IGL) and liquor manufacturing in key markets (for Globus).

**R&D Investment Levels as % of Revenue:** Specific R&D figures are not provided, but the emphasis on "innovation pipeline" and "new product launches" by all companies implies significant investment in product development. * **Radico Khaitan:** "Strong innovation pipeline" (Morpheus Rare Luxury Whisky, The Spirit of Kashmyr, Magic Moments Flavors of India). * **India Glycols:** "Evaluating new technologies (e.g., SAF, green chemistries through synthetic biology and fermentation)" and developing "bio-based amines" indicates substantial R&D in its chemical segment. * **Globus Spirits:** Investing in "ENP (Expenditure on New Product Development) to fuel brand growth, open new geographies, and launch new products." This is a direct allocation towards innovation.

These investments, while not quantified as a percentage of revenue, are critical for maintaining competitive edge and capturing evolving consumer preferences.

**Dividend Policies and Payout Ratios:** No specific information on dividend policies or payout ratios is provided in the extracted data.

**Share Buyback Programs:** No information on share buyback programs is provided.

**M&A Activity and Strategy:** * **Globus Spirits:** Board meeting on November 20, 2025, to consider a fundraise for "organic and inorganic growth opportunities in consumer business." This indicates a strategic openness to M&A as a growth lever. * **India Glycols:** The "de-merger" into three companies (India Glycols, IGL Spirits, Ennature Bio Pharma) is a significant internal restructuring aimed at unlocking value and allowing each entity to pursue its own growth strategy, which could include future M&A for the individual entities. * **Radico Khaitan:** Board approved "Scheme of Amalgamation of its wholly owned subsidiary and step-down subsidiaries" to streamline corporate structure, which is an internal consolidation rather than external M&A.

**Cash Generation and Free Cash Flow Profiles:** * **Radico Khaitan:** Strong EBITDA growth (**+45.4% in Q2 FY26 y-o-y**) and Net Profit growth (**+69.1% in Q2 FY26 y-o-y**) indicate robust cash generation. The "reduction of ₹146.1 Crore vs. March 2025" in Net Debt suggests healthy free cash flow generation being used for debt repayment. Management explicitly states a focus on "enhancing cash flows." * **India Glycols:** Strong EBITDA growth (**+33% in Q2 FY26 y-o-y**) also points to good cash generation. The planned "preferential allotment of ₹467 Crore equity" to reduce term loans indicates a strategic move to improve the cash flow profile by lowering interest expenses. * **Globus Spirits:** "Strong cash turns" in its R&O category indicates efficient cash generation from its core manufacturing business. The significant improvement in manufacturing margins (₹2 to ₹5.4 per litre) directly contributes to better cash flow.

**Capital Efficiency Improvements:** * **Debt Reduction:** * **Radico Khaitan:** Reduced Net Debt by **₹146.1 Crore** from March 2025 to September 2025, bringing it down to **₹427.4 Crore**. This improves capital efficiency by lowering interest burden and strengthening the balance sheet. * **India Glycols:** Plans to reduce long-term debt by **₹467 Crore** through a preferential allotment. This is expected to reduce interest costs by **₹60-70 Crore per year from next year**, significantly improving capital efficiency and profitability. Post de-merger, the debt will be segregated, with **₹600 Crore for India Glycols** and **₹800 Crore for IGL Spirits**. * **Improved Margins:** The significant improvement in EBITDA and Net Profit margins across companies (Radico's EBITDA margin from 14.5% to 15.8%, IGL's from 12.4% to 14.6%, Globus's EBITDA +89%) demonstrates better utilization of capital and operational efficiency. * **Higher Capacity Utilization:** Globus Spirits' Samalkha plant operating at **85% utilization** is an example of efficient asset use, leading to better returns on invested capital. * **Strategic CAPEX:** Investing in high-growth, high-margin areas like performance chemicals (IGL) or premium liquor segments (Globus's UP distillery) is a way to improve capital efficiency by generating higher returns from new investments.

Overall, the sector is demonstrating a disciplined approach to capital allocation, prioritizing debt reduction, strategic growth investments, and brand building, all aimed at enhancing long-term investor returns.

H. FUTURE OUTLOOK & PROJECTIONS

The future outlook for the Alcoholic Beverages sector in India appears highly positive, driven by strong underlying demand, strategic initiatives by companies, and supportive government policies in certain segments. Management guidance across the companies points towards sustained growth, improved profitability, and expanded market presence.

**Industry Growth Projections (with timeframes):** * **Ethanol Blending Program:** This is a clear, government-backed growth trajectory. * India Glycols states the program has progressed from **~5% in FY19-20 to expected ~20% in FY25-26**. * The government is looking at the possibility of increasing blending to **~27% beyond 2026**. This provides a long-term, stable growth avenue for ethanol producers. * **Premiumization Trend:** Expected to continue and accelerate. The increasing disposable incomes and evolving consumer preferences will drive demand for higher-value products. * **Overall Sector Growth:** While specific aggregate market projections are not provided, the robust growth rates of key players (Radico's 33%+ revenue growth, IGL's 25%+ EBITDA growth, Globus's 89% EBITDA growth) suggest a healthy growth outlook for the sector as a whole.

**Management Guidance Across Companies:** * **Radico Khaitan:** * **Pricing Scenario:** "Optimistic that the pricing scenario for ENA and grains will remain stable to benign going forward during FY2026." This bodes well for cost management and margins. * **A&SP Spend:** Expects to maintain A&SP spend around **6% to 8% of IMFL revenues** to drive sales momentum, indicating continued investment in brand building. * **Profitability:** Focus on "driving profitable growth, enhancing cash flows, and delivering long-term value." * **Growth:** "Entering the next phase of accelerated, high-quality growth, both in India and across international markets." * **India Glycols Limited:** * **Ethanol Blending Program:** Expects it to progress as planned, with potential for **~27% blending beyond 2026**. * **Crude Oil Prices:** Expects crude oil prices to "harden," which would reduce the disadvantage for its chemical products against petrochemical alternatives. * **Trade Issues:** Hopeful that "resolution of trade issues between India and U.S. will help chemical market." * **Performance Chemicals:** Expects "doubling of revenue and contribution on a small base for the year, and for H2," and potentially "10x the business over next few years." This is a very aggressive growth projection for this segment. * **Ennature Biopharma:** Expects "Q4 to be much better than first three quarters." * **Liquor Business:** Expecting "better excise policies for FY26-27." * **Ethanol Pricing:** If excess ethanol capacity leads to lower market prices, IGL will consider "using own ethanol for chemicals," demonstrating strategic flexibility. * **Globus Spirits Limited:** * **FY29 Vision (Consumer Category):** * Total consumer category revenue: **₹2,200+ Crores**. * Margins: **Over 17%**. * P&A category contribution: **25% of these revenues**. * Millionaire Brands: Expecting number to "go north significantly beyond 3." * Geographical Presence: Intends to have "three very strong platform states (including UP)" and be present "across well beyond North, becoming a national beverage platform." * **P&A Profitability:** Endeavor to make "every state profitable in the third full year of operation." * **Delhi Liquor Policy:** Expects "current policy will get amendments from April '26," opening up to "more consumer experiences and luxury." * **Manufacturing Business:** Long-term strategic guidance for EBITDA margins is **5% to 7%**, acknowledging that current higher profitability due to weak raw material prices will normalize. * **R&O Price Hike:** Expects roughly **5% per year price hike** (can come once in two years as 10%). * **UP Distillery:** Expected to kick in "within Q3 FY26," with "rapid" ramp-up. * **R&O Growth:** Expecting an "increase in growth rate in R&O" to meet FY29 figures, with primary focus on UP and steady low growth from Rajasthan. * **P&A Growth:** Travel retail and CSD will be part of growth pillars, with geographical and in-state expansion.

**Emerging Opportunities and Whitespace:** * **Luxury & Super-Premium Segments:** Continued growth in this segment, especially for Indian craft spirits (e.g., Rampur, Jaisalmer, DOAAB), offers significant whitespace. * **Flavored Spirits & RTDs:** Magic Moments Flavors of India and Globus studying the Tequila category indicate opportunities in flavored and innovative spirit categories, as well as the evolving RTD market. * **Bio-based Economy:** India Glycols' ventures into bio-based amines, SAF, and green chemistries represent a significant whitespace opportunity, leveraging its expertise in bio-ethanol. * **Branded Nutraceuticals:** India Glycols' focus on this segment with high-margin expectations is another emerging opportunity. * **Geographic Expansion:** Untapped or under-penetrated states, as well as international markets, offer substantial growth potential.

**Transformation Themes and Inflection Points:** * **Premiumization as a Core Strategy:** This is a fundamental transformation across the industry, shifting focus from volume to value. * **Diversification into Bio-economy:** For integrated players like India Glycols, the ethanol blending program and advanced bio-chemicals represent a major transformation into a more sustainable and diversified business model. * **Digitalization & Consumer Engagement:** Radico's "Magic Moments Music Studio" partnership suggests a move towards innovative digital consumer engagement. * **De-merger (IGL):** The planned de-merger will create focused entities, potentially unlocking significant value and allowing for specialized growth strategies. * **Regulatory Reforms:** Anticipated "better excise policies" and opening up of markets like Delhi could be inflection points for accelerated growth.

**Long-term Structural Trends (5-10 year view):** * **Demographic Dividend & Rising Incomes:** India's large young population and growing middle class will continue to drive demand for alcoholic beverages, especially premium ones. * **Urbanization & Lifestyle Changes:** Urbanization leads to changing lifestyles, greater social acceptance of alcohol, and a willingness to experiment with new brands and categories. * **Health & Wellness Consciousness:** While seemingly contradictory, this trend also drives demand for "better for you" options, premiumization (perceived quality), and potentially low-alcohol or non-alcoholic alternatives in the long run. * **Sustainability Focus:** Increasing pressure for environmentally friendly production and packaging will shape the industry. India Glycols' green chemistry initiatives are aligned with this. * **Digital Transformation:** E-commerce (where permitted) and digital marketing will play an increasingly important role in reaching consumers.

**Potential Disruptions on the Horizon:** * **Sudden Policy Shifts:** Any abrupt changes in state excise policies (e.g., widespread prohibition) could severely disrupt the market. * **Global Economic Shocks:** Major global recessions or trade wars could impact exports and the chemical business. * **Technological Breakthroughs:** Significant advancements in non-alcoholic alternatives or synthetic alcohol could pose a long-term threat. * **Intensified Competition:** As the market grows, competition from both domestic and international players will likely intensify, putting pressure on margins for less differentiated products.

**Expected Margin Evolution:** * **Upward Trend for Premium Segments:** The continued focus on premiumization is expected to drive overall margin expansion for companies like Radico Khaitan and the consumer business of Globus Spirits. Globus targets "over 17% margins" for its consumer category by FY29. * **Stable to Improving for Integrated Players:** India Glycols' consistent EBITDA margin improvement (from ~11% to ~15%) is expected to continue, supported by the high-margin potable spirits and growing performance chemicals segments, and reduced interest costs. * **Normalization for Manufacturing:** Globus Spirits expects its manufacturing business EBITDA margins to normalize to **5% to 7%** in the long term, from current higher levels, as raw material prices fluctuate. Overall, the industry is poised for margin expansion, driven by a favorable product mix shift towards premium offerings and operational efficiencies.

I. COMPANY-BY-COMPANY PROFILES

Radico Khaitan Limited

**Company Name and Brief Description:** Radico Khaitan Limited is one of the oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL) in India. The company is known for its diverse portfolio of brands across various price points, with a strong emphasis on premium and super-premium segments. It operates distilleries and has a significant presence in both domestic and international markets.

**Scale Metrics (Revenue, Capacity, Market Share):** * **Revenue from Operations (Net):** * Q2 FY26: ₹1,493.9 Crore * H1 FY26: ₹3,000.0 Crore * **Revenue from Operations (Gross):** * Q2 FY26: ₹5,056.7 Crore * H1 FY26: ₹10,370.2 Crore * **Total Own Volume (Q2 FY26):** 8.93 Million Cases * **Market Share:** * **Morpheus Super Premium Brandy:** India's largest selling premium brandy with **over 60% market share**. * **Jaisalmer Indian Craft Gin:** **50% market share of the luxury gin space**. * **Magic Moments Vodka:** Accounts for **60% of the overall vodka market share**. * **8PM Premium Black Whisky:** Became the **eighth brand to enter the prestigious Millionaire's Club in FY2025** with **1.9 million cases sold**. * **Royal Ranthambore Heritage Collection Whisky:** Achieved a market share of **10% in CSD during September 2025**. * **International Presence:** Rampur Indian Single Malt Whisky in **~50 countries and 35 travel retail**. Jaisalmer Indian Craft Gin in **~40 countries and 30+ travel retail**. Sangam World Malt Whisky in **~40 countries**.

**Financial Performance Summary (Growth, Margins, Returns):** Radico Khaitan has demonstrated exceptional financial performance with strong growth and margin expansion. * **Revenue Growth (Q2 FY26 y-o-y):** * Gross Revenue: **+29.4%** * Net Revenue: **+33.8%** * **Profitability (Q2 FY26 y-o-y):** * Gross Profit: **+33.9%** (Gross Margin: 43.6%) * EBITDA: **+45.4%** (EBITDA Margin: 15.8%, up from 14.5% in Q2 FY25) * Profit Before Tax: **+66.6%** * Net Profit: **+69.1%** (Net Income Margin: 9.3%, up from 7.4% in Q2 FY25) * **EPS (Q2 FY26 y-o-y):** Basic EPS grew **+68.9%** to ₹10.38. * **Net Debt (as of Sep 30, 2025):** ₹427.4 Crore, a reduction of **₹146.1 Crore vs. March 2025**.

**Strategic Priorities and Focus Areas:** 1. **Premiumization Strategy:** Continued focus on developing and promoting premium and super-premium brands to capture evolving consumer preferences and drive value growth. 2. **Innovation:** Strong pipeline of new product launches and brand refreshes across categories. 3. **Brand Investments:** Consistent advertising and sales promotion (A&SP) to build brand equity and drive sales momentum, targeting **6% to 8% of IMFL revenues**. 4. **Distribution Expansion:** Expanding reach for various brands across domestic and international markets, including CSD. 5. **Operational Efficiency:** Driving profitable growth and enhancing cash flows. 6. **Corporate Structure Streamlining:** Amalgamation of subsidiaries for efficiency.

**Competitive Advantages and Positioning:** * **Strong Brand Portfolio:** A diverse range of established and leading brands with significant market shares in key categories (Morpheus, Jaisalmer, Magic Moments). * **Early Mover Advantage in Premium:** Well-positioned in the high-growth premium and luxury segments, particularly with Indian craft spirits. * **Extensive Distribution:** Robust domestic and growing international distribution network. * **Financial Strength:** Demonstrated ability to generate strong profits and reduce debt, providing capital for future growth.

**Key Metrics and KPIs Specific to the Company:** * **Prestige & Above Volume Growth (Q2 FY26 y-o-y):** +21.7% * **Regular & Others Volume Growth (Q2 FY26 y-o-y):** +79.6% (driven by AP route-to-market change) * **Prestige & Above as % of Total Own Volume (Q2 FY26):** 43.6% * **Prestige & Above as % of Total IMFL Revenue (Q2 FY26):** 68.6% * **IMFL as % of Total Revenue from Operations (Q2 FY26):** 70.1% * **A&SP as % of IMFL Sales (Q2 FY26):** 6.1%

**Management Outlook and Guidance:** * Optimistic about stable to benign ENA and grain pricing for FY26. * Expects to maintain A&SP spend around 6% to 8% of IMFL revenues. * Committed to driving profitable growth, enhancing cash flows, and delivering long-term value. * Anticipates entering a phase of accelerated, high-quality growth in both India and international markets.

**Recent Developments and Initiatives:** * Launched **Morpheus Rare Luxury Whisky** (super-premium extension). * Introduced **The Spirit of Kashmyr Vodka** (luxury segment). * Expanded **Magic Moments Flavors of India** range and launched **Magic Moments Music Studio** and **Pocket Pack**. * Refreshed packaging for **8PM Premium Black Whisky** and re-launched **After Dark Blue Whisky**. * Approved Scheme of Amalgamation for subsidiaries.

India Glycols Limited

**Company Name and Brief Description:** India Glycols Limited (IGL) is a leading diversified company with significant interests in Biofuels (ethanol), Potable Spirits, Industrial Chemicals (including bio-based chemicals), and Ennature Biopharma. It leverages its integrated manufacturing capabilities, particularly in ethanol production, to serve multiple end markets.

**Scale Metrics (Revenue, Capacity, Market Share):** * **Total Income from Operations (Consolidated Q2 FY26):** ₹2,414 Crore * **Sales (Consolidated H1 FY26):** ₹4,920 Crore * **Segmental Sales (Net Revenue Q2 FY26):** * Biofuels: ₹423 Crore * Potable Spirits: ₹338 Crore * Chemicals: ₹288 Crore * Ennature Biopharma: ₹43 Crore * **Ethanol Supply (FY24-25):** 15 Crore liters * **Market Position:** * Maintained leadership in Country Liquor & IMFL in UP and Uttarakhand. * Among the top three in the Vodka segment in UP, Delhi, Uttarakhand, Chandigarh. * Bacardi CSD for North and East goes from IGL's Kashipur plant.

**Financial Performance Summary (Growth, Margins, Returns):** IGL has shown consistent revenue growth and significant margin expansion over recent years. * **Revenue Growth (Consolidated Q2 FY26 y-o-y):** * Gross Revenues: **+13%** * Net Revenue: **+14%** * **Profitability (Consolidated Q2 FY26 y-o-y):** * EBITDA: **+33%** (EBITDA Margin: 14.6%, up from 12.4% in Q2 FY25) * PAT: **+31%** (PAT Margin: 5.9%, up from 5.1% in Q2 FY25) * **EBITDA Margin Trend:** Consistent improvement from **~11% in FY22 to ~15% currently**. * **Long-term Debt (as of Sep 30, 2025):** ~₹1,400 Crore. Planned reduction of **₹467 Crore** through preferential allotment. Expected interest cost reduction of **₹60-70 Crore per year**.

**Strategic Priorities and Focus Areas:** 1. **Debt Reduction:** Significant fundraise to reduce term loans and improve financial health. 2. **Biofuels Expansion:** Adding capacity to capitalize on the government's ethanol blending program, using multiple feedstocks. 3. **Advanced Chemicals:** Investing in new performance chemicals, particularly bio-based amines, and exploring green chemistries like SAF. 4. **Potable Spirits Premiumization & Expansion:** Partnering for premium brands (Amrut), expanding IMFL geographically (Kerala), and increasing CSD presence. 5. **Ennature Biopharma Differentiation:** Focusing on branded nutraceuticals and gaining international registrations (US FDA approval received). 6. **De-merger:** Strategic plan to de-merge into three focused entities to unlock value and streamline operations.

**Competitive Advantages and Positioning:** * **Diversified Business Model:** Reduces reliance on any single segment, providing stability. * **Integrated Ethanol Production:** Provides a cost advantage and supply security for both biofuels and potable spirits. * **Strong Regional Presence:** Leadership in key liquor markets (UP, Uttarakhand). * **Technological Edge in Chemicals:** Pioneering bio-based amines and exploring advanced green chemistries. * **Government Policy Support:** Direct beneficiary of the ethanol blending program.

**Key Metrics and KPIs Specific to the Company:** * **Biofuels Net Revenue Growth (Q2 FY26 y-o-y):** +63% * **Potable Spirits Net Revenue Growth (Q2 FY26 y-o-y):** +24.5% * **Potable Spirits EBIT Margin (Q2 FY26):** 21.4% * **Ethanol Blending Target:** Government target of ~20% by FY25-26, potential ~27% beyond 2026. * **JV Share of Profit (Q2 FY26 y-o-y):** Increased by 6.8% to ₹12 Crore.

**Management Outlook and Guidance:** * Ethanol blending program expected to continue as per plan. * Anticipates hardening crude oil prices to benefit chemical segment. * Expects significant growth in new performance chemicals (doubling revenue in H2, 10x over next few years). * Foresees better performance for Ennature Biopharma in Q4. * Hopes for better excise policies for the liquor business in FY26-27. * Strategic flexibility to use ethanol for chemicals if biofuel prices decline.

**Recent Developments and Initiatives:** * Board approved **₹467 Crore preferential allotment** for debt reduction. * Launched rum and brandy in Kerala. * Received **US FDA approval** for Ennature Biopharma plant. * Commercial sales of **bio-based amines** expected Q3/Q4 FY26. * De-merger plan into India Glycols, IGL Spirits, Ennature Bio Pharma.

Globus Spirits Limited

**Company Name and Brief Description:** Globus Spirits Limited is an integrated manufacturer of alcoholic beverages, with a strong manufacturing base and a growing consumer business. The company focuses on both Regular & Others (R&O) and Prestige & Above (P&A) segments, with a strategic push towards premiumization and geographical expansion. It also produces ethanol.

**Scale Metrics (Revenue, Capacity, Market Share):** * **Revenue (Standalone Q2 FY26):** ₹661 Crore * **Revenue (Standalone H1 FY26):** ₹1,360 Crore * **R&O Volumes (FY25):** 15.8 million cases (up from 12.3 million cases in FY21) * **Consumer Business Revenues (H1 FY26):** * R&O: ₹444 Crore * P&A: ₹80 Crore * **Brand Portfolio:** 22 brands in total consumer portfolio, with 3 Millionaire Brands. * **Ethanol Production:** Maize-based ethanol constitutes almost **70% to 75% of total**. * **Samalkha Plant Utilization:** Operating at **85% utilization**. * **UP Market:** Country Liquor consumption of **~1 Crore cases a month**.

**Financial Performance Summary (Growth, Margins, Returns):** Globus Spirits has shown modest revenue growth but significant improvement in profitability, driven by operational efficiencies and premiumization. * **Revenue Growth (Standalone Q2 FY26 y-o-y):** +4% * **Profitability (Standalone Q2 FY26 y-o-y):** * EBITDA: **+89%** (EBITDA Margin: 9%) * **Manufacturing Business Margins:** Improved from **₹2 per litre in H1 FY21 to ₹5.4 per litre in H1 FY26**. * **Consumer Business Margins (H1 FY26):** 14%.

**Strategic Priorities and Focus Areas:** 1. **Business Transformation:** Evolving into an innovative, fast-growing alcobev player with a consumer focus and strong manufacturing base. 2. **Premiumization (P&A):** Aggressive expansion of the Prestige & Above portfolio, aiming for **25% of consumer revenues by FY29**. 3. **Geographic Expansion:** Expanding P&A availability to **17 states (including CSD)** and establishing strong platform states beyond North India. 4. **Innovation & New Products:** Continuous investment in ENP to launch new brands and categories. 5. **Manufacturing Capacity Expansion:** New distillery in UP to leverage market potential. 6. **Fundraise:** Considering fundraise for organic and inorganic growth opportunities.

**Competitive Advantages and Positioning:** * **Integrated Manufacturing:** Provides cost efficiencies and supply security, leading to "industry-leading margins" in R&O. * **Strong UP Presence:** Leveraging its "huge home turf advantage" in India's largest liquor market. * **Rapid P&A Growth:** Demonstrates agility and effectiveness in capturing the premium segment. * **Award-Winning Portfolio:** Recognition for quality in its P&A brands (Terai, DOAAB, Mountain Oak).

**Key Metrics and KPIs Specific to the Company:** * **P&A Revenues Growth (H1 FY26 y-o-y):** +55% * **P&A as % of Total Consumer Revenues (H1 FY26):** Over 15% (vs under 5% in H1 FY23) * **Manufacturing Business Margins (H1 FY26):** ₹5.4 per litre * **Consumer Category FY29 Vision:** Revenue ₹2,200+ Crore, Margins >17%, P&A contribution 25%.

**Management Outlook and Guidance:** * Aims for **₹2,200+ Crore revenue** and **over 17% margins** in the consumer category by FY29, with P&A contributing 25%. * Expects to make every P&A state profitable in the third full year of operation. * Anticipates Delhi liquor policy amendments from April '26 to open up premium experiences. * Long-term manufacturing EBITDA margins expected to be 5% to 7%. * UP distillery expected to kick in Q3 FY26 with rapid ramp-up. * Focus on UP and Rajasthan for R&O growth.

**Recent Developments and Initiatives:** * Launched **DOAAB Expression 02: The Old Man & The Blossom** (single malt). * Introduced **Luxury Terai Vodka** (amethyst filter). * Launched **Carib Beer** in UP. * New **UP distillery** starting up in Q3 FY26. * Board meeting to consider **fundraise** for growth.

J. TABLES

Here are the key financial and operational tables extracted from the provided documents, presented for clarity and easy comparison.

Radico Khaitan Limited - Financial Metrics (Standalone Basis)

**Quarterly Financial Performance (₹ Crore, except margins and EPS)**

| Metric | Q2 FY26 | Q1 FY26 | Q2 FY25 | | :-------------------------------------- | :--------- | :--------- | :--------- | | Revenue from Operations (Gross) | 5,056.7 | 5,313.5 | 3,906.6 | | Revenue from Operations (Net) | 1,493.9 | 1,506.0 | 1,116.3 | | Gross Profit | 652.0 | 647.7 | 487.0 | | Gross Margin (%) | 43.6% | 43.0% | 43.6% | | EBITDA | 236.1 | 230.7 | 162.4 | | EBITDA Margin (%) | 15.8% | 15.3% | 14.5% | | Profit Before Tax | 186.3 | 177.6 | 111.8 | | Total Comprehensive Income | 137.8 | 132.2 | 81.6 | | Total Comprehensive Income Margin (%) | 9.2% | 8.8% | 7.3% | | Basic EPS (₹) | 10.38 | 9.96 | 6.14 | | Net Profit | 139.0 | 133.3 | 82.2 | | Net Income Margin (%) | 9.3% | 8.9% | 7.4% | | Other Income | 2.4 | 4.7 | 1.1 | | Income from Operations | 1,496.3 | 1,510.7 | 1,117.4 | | Cost of Goods Sold | 841.9 | 858.3 | 629.3 | | Employee Benefit | 58.5 | 55.2 | 51.3 | | Selling & Distribution | 154.3 | 146.9 | 105.6 | | Depreciation | 37.4 | 36.3 | 35.7 | | Interest | 16.3 | 15.9 | 16.7 | | Other Operating Expenses | 201.5 | 213.5 | 166.9 | | Total Expenses | 1,310.0 | 1,326.1 | 1,005.6 | | Profit Before Exceptional Item & Tax | 186.3 | 184.6 | 111.8 | | Exceptional Items | 0.0 | (7.0) | 0.0 | | Current Tax | 43.8 | 42.2 | 27.3 | | Deferred Tax | 3.6 | 2.0 | 2.3 | | Other Comprehensive Expenses / (Income) | 1.1 | 1.1 | 0.6 |

**Half-Yearly Financial Performance (₹ Crore, except margins and EPS)**

| Metric | H1 FY26 | H1 FY25 | | :-------------------------------------- | :--------- | :--------- | | Revenue from Operations (Gross) | 10,370.2 | 8,172.2 | | Revenue from Operations (Net) | 3,000.0 | 2,252.8 | | Gross Profit | 1,299.7 | 953.5 | | Gross Margin (%) | 43.3% | 42.3% | | EBITDA | 466.8 | 310.6 | | EBITDA Margin (%) | 15.6% | 13.8% | | Profit Before Tax | 364.0 | 213.2 | | Total Comprehensive Income | 270.1 | 157.4 | | Total Comprehensive Income Margin (%) | 9.0% | 7.0% | | Basic EPS (₹) | 20.34 | 11.85 | | Net Profit | 272.3 | 158.5 | | Net Income Margin (%) | 9.1% | 7.0% | | Other Income | 7.0 | 2.4 | | Income from Operations | 3,007.0 | 2,255.2 | | Cost of Goods Sold | 1,700.3 | 1,299.3 | | Employee Benefit | 113.7 | 101.7 | | Selling & Distribution | 301.1 | 205.1 | | Depreciation | 73.6 | 68.5 | | Interest | 32.2 | 32.8 | | Other Operating Expenses | 415.0 | 334.6 | | Total Expenses | 2,636.0 | 2,042.0 | | Profit Before Exceptional Item & Tax | 371.0 | 213.2 | | Exceptional Items | (7.0) | 0.0 | | Current Tax | 86.0 | 52.5 | | Deferred Tax | 5.6 | 2.2 | | Other Comprehensive Expenses / (Income) | 2.2 | 1.1 |

**Radico Khaitan Limited - Growth Rates (y-o-y and q-o-q)**

| Metric | Q2 FY26 vs Q2 FY25 (y-o-y) | Q2 FY26 vs Q1 FY26 (q-o-q) | H1 FY26 vs H1 FY25 (y-o-y) | | :-------------------------------------- | :------------------------ | :------------------------ | :------------------------ | | Revenue from Operations (Gross) | +29.4% | (4.8)% | +26.9% | | Revenue from Operations (Net) | +33.8% | (0.8)% | +33.2% | | Gross Profit | +33.9% | +0.7% | +36.3% | | EBITDA | +45.4% | +2.4% | +50.3% | | Profit Before Tax | +66.6% | +4.9% | +70.7% | | Total Comprehensive Income | +68.9% | +4.2% | +71.6% | | Basic EPS | +68.9% | +4.2% | +71.6% | | Other Income | +111.8% | (49.1)% | +194.0% | | Income from Operations | +33.9% | (1.0)% | +33.3% | | Cost of Goods Sold | +33.8% | (1.9)% | +30.9% | | Employee Benefit | +14.1% | +6.1% | +11.8% | | Selling & Distribution | +46.1% | +5.0% | +46.8% | | Depreciation | +4.7% | +3.1% | +7.4% | | Interest | (2.8)% | +2.2% | (1.7)% | | Other Operating Expenses | +20.7% | (5.6)% | +24.0% | | Total Expenses | +30.3% | (1.2)% | +29.1% | | Profit Before Exceptional Item & Tax | +66.6% | +0.9% | +74.0% | | Net Profit | +69.1% | +4.2% | +71.8% |

**Radico Khaitan Limited - Operational Metrics (Million Cases)**

| Metric | Q2 FY26 | Q1 FY26 | H1 FY26 | Q2 FY25 | H1 FY25 | | :-------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Prestige & Above Volume | 3.89 | 3.84 | 7.73 | 3.20 | 5.93 | | Regular & Others Volume | 5.04 | 5.42 | 10.46 | 2.81 | 6.37 | | Total Own Volume | 8.93 | 9.27 | 18.19 | 6.00 | 12.30 | | Prestige & Above as % of Total Own Vol. | 43.6% | 41.5% | 42.5% | 53.2% | 48.2% | | Royalty Brands | 0.42 | 0.46 | 0.87 | 0.78 | 1.56 | | Total Volume | 9.34 | 9.72 | 19.07 | 6.78 | 13.85 |

**Radico Khaitan Limited - Volume Growth Rates**

| Metric | Q2 FY26 y-o-y | Q2 FY26 q-o-q | H1 FY26 y-o-y | | :-------------------------------------- | :------------ | :------------ | :------------ | | Prestige & Above Volume | +21.7% | +1.2% | +30.5% | | Regular & Others Volume | +79.6% | (7.1)% | +64.2% | | Total Own Volume | +48.8% | (3.6)% | +48.0% | | Total Volume | +37.8% | (3.9)% | +37.7% |

**Radico Khaitan Limited - Revenue Breakup (₹ Crore)**

| Metric | Q2 FY26 | Q1 FY26 | H1 FY26 | Q2 FY25 | H1 FY25 | | :-------------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | IMFL (A) | 1,047.5 | 1,069.7 | 2,117.1 | 763.9 | 1,509.4 | | Prestige & Above | 718.4 | 713.2 | 1,431.7 | 578.0 | 1,077.6 | | Regular & Others | 322.8 | 349.9 | 672.7 | 176.6 | 412.9 | | Others | 6.2 | 6.5 | 12.7 | 9.3 | 18.9 | | Non IMFL (B) | 446.5 | 436.4 | 882.8 | 352.4 | 743.4 | | Revenue from Operations (Net) (A+B) | 1,493.9 | 1,506.0 | 3,000.0 | 1,116.3 | 2,252.8 | | Prestige & Above as % of Total IMFL Rev | 68.6% | 66.7% | 67.6% | 75.7% | 71.4% | | IMFL as % of Total Revenue from Ops | 70.1% | 71.0% | 70.6% | 68.4% | 67.0% |

**Radico Khaitan Limited - Revenue Breakup Growth Rates**

| Metric | Q2 FY26 y-o-y | Q2 FY26 q-o-q | H1 FY26 y-o-y | | :----------------------------------- | :------------ | :------------ | :------------ | | IMFL | +37.1% | (2.1)% | +40.3% | | Prestige & Above | +24.3% | +0.7% | +32.9% | | Regular & Others | +82.8% | (7.8)% | +62.9% | | Non IMFL | +26.7% | +2.3% | +18.8% | | Revenue from Operations (Net) | +33.8% | (0.8)% | +33.2% |

India Glycols Limited - Financial Metrics

**Quarterly Financial Performance (₹ Crore)**

| Metric | Q2 FY26 (Standalone) | Q2 FY26 (Consolidated) | Q2 FY25 (Consolidated) | | :------------------------ | :------------------- | :--------------------- | :--------------------- | | Total income from operations | 2,413 | 2,414 | 2,148 | | EBITDA | 160 | 160 | 120 | | PBT | 72 | 84 | 63 | | PAT | 54 | 65 | 50 |

**Half-Yearly Financial Performance (₹ Crore)**

| Metric | H1 FY26 (Standalone) | H1 FY26 (Consolidated) | H1 FY25 (Standalone) | H1 FY25 (Consolidated) | | :-------- | :------------------- | :--------------------- | :------------------- | :--------------------- | | Turnover | 4,917 | - | 4,433 | - | | Sales | - | 4,920 | - | 4,433 | | EBITDA | 310 | 311 | 246 | 248 |

**India Glycols Limited - Margins**

| Metric | Q2 FY26 | H1 FY26 | Q2 FY25 | H1 FY25 | FY22 | FY23 | FY24 | FY25 | Current | | :------------ | :------ | :------ | :------ | :------ | :---- | :---- | :---- | :---- | :------ | | EBITDA Margin | 14.6% | 14.6% | 12.4% | 12.8% | ~11% | ~13% | ~14% | ~14% | ~15% | | PAT Margin | 5.9% | 6.5% | 5.1% | 5.7% | - | - | - | - | - |

**India Glycols Limited - Growth Rates (Consolidated)**

| Metric | Q2 FY26 vs Q2 FY25 (y-o-y) | H1 FY26 vs H1 FY25 (y-o-y) | | :------------- | :------------------------ | :------------------------ | | Gross Revenues | +13% | +11% | | Net Revenue | +14% | +11% | | EBITDA | +33% | +25% | | PAT | +31% | +26% |

**India Glycols Limited - Segmental Sales (Net Revenue, ₹ Crore)**

| Segment | Q2 FY26 | Q2 FY25 | H1 FY26 | H1 FY25 | | :------------------ | :------ | :------ | :------ | :------ | | Biofuels | 423 | 260 | 770 | 499 | | Potable Spirits | 338 | 271 | 680 | 551 | | Chemicals | 288 | 369 | 588 | 763 | | Ennature Biopharma | 43 | - | 94 | - |

**India Glycols Limited - Segmental EBIT Margins**

| Segment | Q2 FY26 | Q2 FY25 | H1 FY26 | H1 FY25 | | :------------------ | :------ | :------ | :------ | :------ | | Biofuels | 6.9% | 5.1% | 6.8% | 6.4% | | Potable Spirits | 21.4% | 20.5% | 21.3% | 19.0% | | Chemicals | 10.9% | 8.1% | 10.9% | 9.0% |

Globus Spirits Limited - Financial Metrics (Standalone)

**Financial Performance (₹ Crore, except margins)**

| Metric | Q2 FY26 | H1 FY26 | | :------------ | :------ | :------ | | Revenue | 661 | 1,360 | | EBITDA | 63 | 123 | | EBITDA Margin | 9% | 9% |

**Globus Spirits Limited - Manufacturing Business Margins**

| Period | Margin (₹ per litre) | | :----- | :------------------- | | H1 FY21 | 2.0 | | H1 FY26 | 5.4 |

**Globus Spirits Limited - Growth Rates (Standalone)**

| Metric | Q2 FY26 vs Q2 FY25 (y-o-y) | H1 FY26 vs H1 FY25 (y-o-y) | | :---------------------------- | :------------------------ | :------------------------ | | Standalone Revenue | +4% | +6% | | EBITDA | +89% | +47% | | Consumer Business Revenues | - | +10% | | Regular and Others (R&O) Rev. | - | +5% | | Prestige & Above (P&A) Rev. | - | +55% |

**Globus Spirits Limited - Consumer Business (H1 FY26)**

| Metric | Value | | :-------------------------------------- | :----------- | | R&O Revenues | ₹444 Crore | | P&A Revenues | ₹80 Crore | | P&A in total consumer revenues | Over 15% | | Margins | 14% |

**Globus Spirits Limited - R&O Volumes (Million Cases)**

| Period | Volume | | :----- | :----- | | FY21 | 12.3 | | FY25 | 15.8 |