Ladies and gentlemen, good day and welcome to Radico Khaitan Limited Q1 and FY26 Earnings Conference Call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Manyal from DAM Capital Advisors Limited. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone. We would like to thank Radico Khaitan Management Team for providing DAM Capital the opportunity to host Q1 FY26 earnings call. We have with us the senior leadership team from Radico Khaitan, Mr. Abhishek Khaitan, Managing Director, Mr. Amar Sinha, Chief Operating Officer, Mr. Dilip Banthiya, CFO, and Mr. Sanjay Banga, President, International Business. I hand over the call to Mr. Abhishek Khaitan for his opening remarks. Over to you, sir.
Good afternoon, ladies and gentlemen. Thank you for joining us on our Q1 FY26 results conference call. Before we begin discussions on Q1 FY26 results, I would like to provide a brief update on the U.K.-India FTA. The negotiations between the two governments have been finalized, and the comprehensive economic and trade agreement has been signed. In line with the expectations, duty on bulk Scotch has been reduced from 150%- 25%. We have estimated our Scotch requirements valued at over INR 250 crores in FY26, and we expect significant cost advantages from this conference. Thereafter, the duty will be reduced in nine equal installments to settle at 40% in the 10th year. In three years, we expect the import of Scotch of Radico to cross 400 crores. Moving on to the quarter performance, the first quarter of FY26 has set a strong and encouraging tone for the year ahead.
Building on the momentum for the second half of last year, we have seen sustained solid performance. Our strategic focus on brand premiumization continues to resonate with consumer across markets. In Q1, we delivered our highest-ever quarterly volume, net sales, and profitability. Our net sales volume grew by an impressive 7.5%, led by strong demand for our premium portfolio. A stable raw material environment and a favorable product mix supported healthy year-on-year margin expectations. We entered FY26 with important brand milestones that further strengthened our premium portfolio. One of the key highlights was the launch of Morpheus Super Premium Whisky, which marks our foray into the fast-growing super premium whisky segment. This is a high-margin category where we were not present. With this launch, we are not only leveraging the equity of the Morpheus brand but also broadening our presence in the upper end of the whisky category.
Initial response has been very positive, with growing entries of strong consumer feedback on both the product and its packaging. We are planning to launch in 10 states in the second half, which covers 70% of this industry. Another notable launch is the Spirit of Kashmir, a luxury vodka that builds on our leadership in the vodka space. It addresses a clear gap in the market by introducing a premium Indian offering in a segment traditionally dominated by imported brands. Distilled with exceptional purity and backed by a compelling brand story, the Spirit of Kashmir aspires to scale globally and position India on the world luxury vodka map. This launch reflects our continued ambition to build world-class, homegrown brands with international appeal. Our broader premium portfolio continues to deliver strong results. Royal Ranthambore, operating in the bottled-in-India Scotch category, has delivered an exceptional 90% growth this quarter.
The brand continues to gain strong consumer acceptance, with discerning whisky enthusiasts increasingly choosing it for its craftsmanship, its blend profile, and premium packaging. Magic Moments, a flagship vodka brand which crossed 7 million cases last year, posted another solid quarter with 20% volume growth. After Dark whisky entered a dynamic new phase in 2022 with the introduction of After Dark Blue, designed to resonate with a younger contemporary audience. Since then, the brand has maintained its strong upward trajectory. This brand sold 1.9 million cases last year and is on track to double that volume in this fiscal. Our luxury and semi-luxury brands delivered nearly 50% year-on-year value growth during the quarter. We are on track to achieve our guidance of INR 500 crores revenue from luxury and semi-luxury brands in FY26. These results are a testament to the strength of our strategy and the disciplined execution by our team.
We remain sharply focused on driving profitable, sustainable growth through continued premiumization, deeper market penetration, innovation-led approach, and operational efficiency. The Indian alcohol industry is undergoing a structural shift from traditional consumption patterns to a more lifestyle-driven category. With rising affluence, evolving preference, and increasing demand for elevated experiences, we see substantial long-term opportunity in the premium and luxury segment. At Radico Khaitan, we are well-positioned to capitalize on this transformation. Given the strong growth momentum, we are poised to deliver 20% plus overall volume growth in FY26 with robust contributions from the prestige and above category. This, coupled with enhanced profitability and a persistent focus on cash flow generation, will guide long-term value creation for our shareholders. With this, I would now like to hand over the call to our CFO for a detailed operational and financial review. Thank you, everyone, and over to you, Dilip.
Thank you, Abhishek. Thank you, everyone, for joining us on this call today. During quarter one of FY26, we reported total IMFL volume of 9.72 million cases, representing growth of 38% on a year-on-year basis. This is the highest-ever volume recorded by Radico Khaitan in a quarter. Prestige and above category volume grew by 41%. In value terms, the prestige and above category registered 43% growth. Non-IMFL revenue grew by 12% on a year-on-year basis. Regular category volume, which was impacted due to certain state-specific industrial-related issues and ongoing strategic rationalization of the portfolio, has now returned to a sharp growth trajectory from quarter three of last year. This momentum is expected to sustain in next quarters also.
We continue to see strong traction for our brand portfolio in Andhra Pradesh and has gained market share from 10% in the first half of financial year 2025 to over 28% in quarter one of the current financial year, which is the highest in the industry. Gross margin during the quarter was 43% as compared to 41% in quarter one of last year and 43.5% in quarter four of last year. Gross margin improved on a year-on-year basis due to the ongoing premiumization in IMFL business, coupled with a relatively stable raw material scenario. Gross margin remained broadly stable on quarter-on-quarter basis due to higher bulk sale in this quarter. EBITDA margin expanded from 13% in quarter one to 15.3% in this quarter. Despite higher marketing spend, we have seen economies of scale benefits.
We are optimistic that the pricing scenario for ENA and grain will remain stable going forward during financial year 2026. We are on track to achieve our margin expansion guidance. Net debt reduced by INR 164 crores since March 2025, mainly on account of profitability and working capital reduction. With limited CapEx going forward, we expect to be almost debt-free by financial year 2027. Going forward, our focus will remain on driving profitable growth, enhancing cash flow distribution, and improving working capital efficiency, all of which will contribute to continued debt reduction. With this, we will now open the lines for Q&A. Thank you.
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Aditya Soman from CLSA. Please go ahead.
Yeah, hi. Good evening and thanks for the opportunity. So, two questions from me. Firstly, in terms of marketing spend, you indicated that marketing spend has gone up, which is to be expected when they're launching premium brands. But can you give us a sense of where these marketing spends are being spent in terms of, obviously, in-store marketing, any social media activism, or anything of that sort? And then secondly, could you elaborate if there's any sort of impact of any stocking up before the Maharashtra duty change or anything of that sort in this quarter's numbers? And just a broader question on that, if there will be any or if you can quantify the impact or potential impact from Maharashtra on your numbers? Thanks.
As far as the marketing spend goes, we have always maintained that our marketing spend is in the range of about 7%-8% of our turnover, and that's been seen in the last couple of years also, so I think we'll be maintaining that, and as far as the marketing spend goes, our main focus on marketing is more on digital space. Second is on the shop visibility on trade and also on a lot of events, so basically, these are our basic marketing spends where we concentrate in terms of pricing, so digital on-trade events, and these are the basic marketing spends. The second question about Maharashtra: Maharashtra contributes only 4%-5% of our volumes, and there has been no stocking in this quarter as far as the volume growth goes. So there is no effect on the stocking.
With this Maharashtra, we don't expect much of this thing's effect on our profitability going forward.
Understand. Very clear. And if I may just follow up on the marketing spends, so is there any shift in marketing now that you're, as you mentioned, as you're focusing more on digital? Is that a marked shift, and is that a big competitive advantage for you on shifting to using more digital platforms, or do you see all the other marketers do that as well?
It all depends. Marketing is all relative. Sometimes if you want to market, you market in IPL, etc. So in Radico, we have always, like last seven years, we have outbeaten the industry. Right now, we have done a huge promotion across all the eight airports where we have taken positions for our luxury brands, where for months we've taken dedicated spaces showcasing India's luxury brands, especially going on Bombay, Delhi right now. So I think every company follows a different marketing strategy. But our thing is we think global at local. So our lot of marketing spend goes state-specific because each culture, each state in India is different. South India is different, North is different. Go as per the region.
Understand. Very clear. I'll come back to the queue form question.
Thank you. The next question comes from the line of Raj Mistry from ICICI Securities. Please go ahead.
Yeah. First of all, congratulations on a very good set of numbers. And so my first question is regarding volume growth that we have seen, very 40% plus volume growth. If we adjust for, let's say, the opening of Andhra Pradesh and any other north of India, what would be a normalized volume growth during the quarter?
So if we add apple-to-apple, the Andhra Pradesh, then the volume growth in P&A category is upward of 15% or 15%-20%, and overall volume growth is around 12%.
Got it. Got it.
I think this low base will continue till December quarter, if I'm not mistaken, right?
Yeah, yeah. This base effect will be Q2 and Q3 partly.
Partly Q3 also.
So thank you very much. And second question is for in terms of margin, now that non-IMFL business has been doing very well, what kind of margin we are witnessing in non-IMFL business right now? And is there any further scope of improvement of margin in that business?
Yeah. So the point is in the quarter, the non-IMFL business has a total KTE is around 6.5%-7%, and IMFL margins are upward of 18%. And we expect in going forward with the grain and other commodities showing some softening trend, so might improve in future those non-IMFL margin as well. And plus also, like if you see last year, my margins were 13.8% for the quarter. It is 15.3%.
So I think coming for the next three years, we expect easily, until something very drastically happens on the commodity side, easily a margin expansion of 125%-150% at this point year on year for the next three years. We'll come to the late team.
Okay. Your earlier guidance was 100 basis points of margin expansion only increased 25 to 125 basis points. Is that correct?
Yes, that is correct because our premium brands are doing exceptionally well. Plus, you see with the volume growth and with everything, operating leverage comes into play because you don't need to increase too much of manpower. And we are seeing super traction. And what is happening, even if you see, we control 60% of the vodka market in the country, and globally, vodka is 28%, whereas in India, it will be only about 3.5%-4%. So we are seeing a gradual shift happening to vodka, where definitely Radico is in the biggest advantage space on this higher margin than any other product. So I think if God willing, everything goes well and we don't experience any major shortages, which happened last to last year, we feel that 125-150 basis points is easily possible.
Got it. Got it. And last question is on Morpheus volume that we have launched. So as per my thing, is that this category is very profitable in a way. Also, it turns in a way can drive very good volume growth. So what's the internal aspiration for this market? What kind of volume growth do you envisage in the next two to three years' period of time? And which will be the key focus states for that brand?
So first of all, I must tell you that the segment itself, we see as of today, this is a 17 million cases plus segment. The growth rate is approximately 15%, a strong double-digit growth rate of this segment. All the key states like Karnataka, Uttar Pradesh, Andhra Pradesh, Haryana, Delhi, these are all up, these are all very big states for the segment. Having said this, like we said, we launched it technically in the super premium whiskey segment, but we were always unrepresented. This was the only segment we were unrepresented. And this is the first launch in this segment that we've done starting from UP.
The response that we've seen, forget in terms of primary sales, the response that we've seen at the tertiary level, whichever outlet we have gone to, say, about 1,000 plus outlets, every shop has shown strong tertiary demand by the consumer. So the first feed is extremely positive, and we are very optimistic that we will see the same response across India. Now, having said this, we must also reiterate that we emphasize the point that this has been launched as the most expensive super premium whiskey in terms of price positioning or consumer price, INR 150 more than the most expensive competitive brand in this segment. With this launch, Radico has made a foray into the largest contribution pool of the IMFL segment. The blend is unique.
It's a mix o`f imported Scotch malts, the finest Indian grain spirit aged in bourbon barrels. We hope that this is a complete winner in the segment, and we are very optimistic that we will carve out a dominant position in the next couple of years for this brand. You would also know that Ranthambore was launched three years back at a price higher than the largest selling Scotch whiskey. Today, it is growing at a rate between 90%- 100% year after year, and it's become a brand that is being demanded by the consumer in practically every corner of this country. Despite that, there are demands flowing in from overseas as well, so Ranthambore is a sure-shot winner that we see. Morpheus Whiskey is something that is showing great traction, and Abhishek talked about the spirit of Kashmir.
I think that's a brand to look out for in the luxury vodka segment, which was long dominated by international brands. This is a matter of pride for India to launch a product in this segment, and we feel we have ambitions to take this brand globally.
No, very well said. So just last question on this part, that we don't have any capacity constraint in the luxury?
Yes. As far as the single malt goes, we have spent a lot of money. We have tripled our capacity. And I think as the liquid flows, we'll be able to cater to the demand. And if the demand is more, we'll keep investing in the single malt. As far as the other brand goes, we don't have any capacity constraint because we've done our CapEx of Sitapur, which is the largest plant of Asia. So I think capacity won't be a constraint for us.
Got it. Got it. Once again, congratulations on good set of numbers. Just one thing, what would be the view from Telangana market? And that would be my last question. Thank you.
Yeah. What is the Telangana market? We could not understand your question, please.
So what is the balance amount view from the Telangana market, Telangana government market?
So let me tell you, in Telangana, our overdues are roughly in the region of INR 90 crores, and we are the lowest in the industry. There has been a slow progress, but the good thing about Telangana is that whatever supplies we are making now in the recent times, we are getting our money on time. And I'm sure that Telangana government will very soon clear the balances with.
Okay. Thank you. That's it from my side.
Thank you. The next question comes from the line of Harit Kapoor from Investec. Please go ahead.
Yeah. Hi, good evening. So my first question is on After Dark. I remember this being a fairly old brand in your portfolio now, where you had launched this along with another brand called Regal Talons, and you were playing it. You were kind of doing the regional play here. But in the last two to three years, this brand seems to have really exploded in terms of growth. Could you just take us through as to what have been the variables to have driven this significant growth in this brand over the last two, two and a half years? That would be very helpful. That's my first question.
Good question. We were expecting this to come. See, in fact, After Dark was a sleeping giant in our stable. A couple of years back, we were always eyeing the semi-luxury segments, the premium segments, to be working very hard on those segments because we wanted to earn profit for our shareholders. What we have seen of late, that what we have seen of late is that this has actually emerged as the largest segment of the Indian IMFL industry. It's 70 million cases industry growing at about 15%-16%. We feel that there's a big opportunity because we are practically represented with our range of products in every Morpheus whisky now being launched. We are now represented in almost every category and segment of the IMFL industry.
So one fine day, while we were looking at promoting the luxury and semi-luxury, we thought we should not overlook this because we already had a brand. We repositioned it with excellent packaging, a change in the look and feel, with upgradation in the blend. And ever since then, the brand has not looked back. In the first year itself, we did nine lakhs. In the second year, we grew by more than 100% to 1.9 million. And in the current year, FY26, we hope to double our volumes very easily. The brand is showing great traction. It is in the segment which is currently held by brands like IB and McDowell's. And I think it is emerging as a competitive force in this segment. We are very optimistic that we'll be a good player in this industry with this brand.
Now, just to follow up, is the aspirational now national for After Dark? Is it across markets? I just wanted to get an update on that.
So as far as we are concerned, After Dark is already available in 14 states. And now we are going to take it across 24 states in the next six months. We are going to launch it national, hammer and tongs on this brand. To add on the After Dark is when we repositioned it, repackaged it, reblended it, we started with selected states. But whichever state it has gone, the response is so good that now in the current fiscal, we take it all India. So the brand is showing a very fast movement.
Okay. Second question is on the statewide regulations. We've seen Maharashtra being negative for the industry, Andhra Pradesh, Uttar Pradesh over the last six, eight months actually positive. Just wanted to get a sense check on are there any other states where the regulatory environment has been this side or that side over the last quarter or so that might have kind of missed us because really all the news has been taken up by Maharashtra and UP and Andhra as well?
See, first of all, it's very important to state that UP and Andhra today are faring pretty well with their excise policies. It's giving an opportunity to every player operating in this country to be present in every segment and category. So the excise policies are extremely good and favorable to the industry, whether Indian or foreign players. Having said that, as far as Maharashtra is concerned, yes, we see that there is going to be an increase in the consumer price for the brands. But then we have always seen in the past that like what we saw in Karnataka, they experienced that the consumer price of their brands in Karnataka were the highest in the country. And then when they started seeing growth in adjoining states, then they realized that they need to rework on them, which they did.
Now in Karnataka, premium brands have started growing and doing pretty well. We used to be only 4% of our premium portfolio in Karnataka last year. Today, our premium portfolio in the saliency is 15%. So as far as Maharashtra is concerned, we feel that it is too early to comment on what will be the outcome, but in this business, water finds its level. I think every state government doesn't want today to lose on the revenue. So I'm sure if it doesn't work, they will relook at the entire strategy of the policy, but we are hopeful that Radico will find a way to maneuver through the intricacies of this policy. And also what happens, what we see, like Maharashtra is the MRP is too high, the material starts coming from the neighboring states. So in the end, what Amar rightly said, water will find its own level.
The last question was on CapEx, so for this year, Dilip ji, what is the kind of number that you're looking at for 26 roughly the CapEx?
So now our CapEx average run rate will be around INR 150-160 crores annually for next two years.
Is this largely maintenance or there's some addition as well?
Yeah, it is related to the brand and brand related and malt related.
Got it. Got it. Wish the team all the best. Thank you.
Thank you. Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. The next question comes from the line of Abhijeet Kundu from Antique Stock Broking. Please go ahead.
Yeah. Hi, sir. Congrats on a really great set of numbers. It was a very strong outperformance. My question was one on what was the thought process behind your naming, I mean, behind your super premium whiskey launch. I mean, the name of the whiskey has been Morpheus. Morpheus was more about Morpheus branding. So what was the thought process behind naming the whiskey as Morpheus? One was that. And secondly, in Maharashtra, we are not still very clear. At least I am not still very clear about how the duty structure has been because what we have come to know is that in the upper price segment or the super premium segment, the tax increase has been lower as compared, I mean, and it has been higher in the entry-level prestige above and mid-level prestige above. So just some color on that. These two are my questions.
So let me tell you what's been happening with the first. I'll answer the Maharashtra bit of the question. See, the fact is that changes have taken place, which are drastic in terms of policy. But practically, most brands that have induced numbers are still thinking of pricing their product between INR 200-INR 250 to the consumers. And this price band is not very unique. It's been there at some point of time either in Maharashtra or in Karnataka or in any part of the country. So as I said, that yes, these changes are drastic, but then we need to see it's too early as to comment as to how the market will react. But we are hopeful that the Maharashtra market is very sensitive because it's surrounded by states like, for example, Daman, Madhya Pradesh, Rajasthan, Goa.
If the policy doesn't work, internally, the brands from other states are going to flow in. The government will lose revenue, and then they will definitely take corrective action. As I said, the water will find its level. But today, what we see is that most large-selling brands are trying to price them between INR 200-INR 50 a nip, which will work. Let's see what happens. Coming back to your first question, which is Morpheus name. See, first of all, it's important to say that Morpheus brandy is the only premium whiskey segment of brandy which enjoys a market share of 65%. The brand equity for this category is extremely strong. In fact, five years back, we decided to make brandy a national product. We extended Morpheus to other parts of the country, to the north, west, and east.
Today, we are the only national premium brandy in the IMFL category and we are growing year after year. For three successive years, we've sold more than 1.2 million cases, and the growth continues to be seen in our current year as well, so that's the kind of equity with all marketing, all activations that we've done for the Morpheus brandy. We were deeply inspired with the brand positioning "Dare to Dream" and that's what we wanted to extend to the Gen Z and the younger generation because that's a subject matter which is dear to the heart of all youngsters today and Morpheus whisky is positioned in that super premium segment, which is now almost becoming the entry segment of all affluent consumers, so that's the inspiration we drew and the brand positioning is "Be Your Dream." With Morpheus, we said "Dare to Dream.
With Morpheus whisky, we are seeing 'Be Your Dream'. So I think that's where it comes from. And the campaigns have worked out very effective for it. The initial response, as I said, is very encouraging. We are very hopeful that this is a serious challenger in the IMFL premium whisky segment in the time ahead.
Wonderful. Thanks. And another thing, I don't know whether you will be able to comment on this or not, but what would be the value contribution of your luxury segment, including Royal Ranthambore? I mean, across the board, all your whisky and cold coffees taken together. What would be the value contribution?
Yeah. As we have guided in quarter four that last year, from luxury segment, the contribution to the IMFL business was around 10%, which is roughly INR 350,000 and INR 60,000. And this year, we are going to cross more than 5 lakh crores from luxury and semi-luxury. And the value of semi-luxury and luxury is 50% right now in this quarter. In this quarter. Yeah.
The gross profit margin would be potentially higher as compared to, obviously, I mean, the lower segments, the P&L segment.
Much, much higher.
Wonderful, sir. Thanks a lot.
Important point here is that most of our luxury and semi-luxury brands are still at their nascent stage. So the future seems to be very bright for these brands based on the traction that we are seeing.
Yeah, because this could the kind of this 50% growth could go on for the next few years. I mean, the kind of underlying demand which is there, and there is not much of serious competition, so to say. I mean, there is, but you have carved out a very strong product offering there and have outperformed. So all the best.
Actually, if I say that I have always believed in one statement that to make the first million is tough. After that, millions follow. So same thing in alcohol. Like say, Royal Ranthambore, if we are targeting next year 500,000 cases, so when so many people are drinking, it becomes a brand. And people want to drink the same brand. Same thing has happened with Jaisalmer. Rampur has not touched the surface only. So I think luxury and semi-luxury, which I'm super confident is the spirit of Kashmir. And there are one or two more brands which are offering in the near term. So I think the luxury semi-luxury story has just begun. And the innovation pipeline is very strong at Radico. So a lot of products are being worked upon.
So that's great to hear. And what has been the response to Sangam? Sangam, I believe, would be in the segment of, I mean, in the product offering of Monkey Shoulder. Is that right to say? I mean, because it is a confluence of many malts. So would that be the product offering?
Yeah. Yeah. You're right. The price of Sangam would be about INR 5,000. The response is fantastic. It's available in 13 states. It's showing great traction. The response is very good from the consumer side. There is quite a bit of repeat demand. So we feel that the brand is poised to grow in the years ahead.
Great to hear. Thanks.
Thank you. Question comes from the line of Pankaj Kumar from Kotak Securities. Please go ahead.
Yeah. Thanks for taking my question and congrats on very good set of numbers. Sir, question is on the non-IMFL category. In this quarter, we have seen this is more than INR 400 crore kind of contribution. So how do you see with that portion too? And how do you see this as a segment contributing in the coming quarters and year ahead?
So the present listing is around between INR 400-INR 420 crores. And in the Kantar and all that, we expect to 5% growth. And in the other, the bulk spirit, which will get converted into the branded business slowly and gradually in three to four years. So we expect a single-digit growth in the non-IMFL from FY26 .
On this working capital that has basically improved in this quarter, so what led to that change? Is it largely driven by UP? And what has changed there?
Yeah. So working capital, one is that it is a cyclical. We build the stock in the season and all that, which sometime in the next six months gets liquidated gradually. Secondly, yes, you're right that UP, which is now that UP has now been passed on to the wholesaler. So that is also gradually reducing the working capital space into that. That's definitely resulted in the reduction of the working capital. But in any case, across the country, we are exercising huge discipline while the sales are going on. I think in the retail industry, the credit norms of Radico would be the stringent. It would be the most stringent.
And sir, my last question, as you stated that one or two more brands which are there in the offing. So which category do you believe where we are not into and we need to add these? And what is the timeframe for these launches?
In terms of the new brands, we are now with Morpheus brandy as well, available across all segments, so we are working on how we can further strengthen our participation and offerings in whether the brown spirit or white spirit, so we're working on all of this, and in fact, all our products have been internationally also very well received. I'll be happy to share that Rampur is the official partner of Michelin Guide for Dubai and Abu Dhabi as well, so it shows the kind of recognition and acknowledgment that all the international players are putting on Rampur and Indian single malt.
Okay. Thank you. These are the questions.
Thank you. The next question comes from the line of Anuj from Antique Stock Broking. Please go ahead.
Hi team. Congratulations . Great set of numbers. Two questions from my side. Earlier in the call, you had mentioned optimism in the vodka segment. Has there been any specific market indicators which have encouraged the expansion in the premium range of Jaisalmer? Secondly, on the regular segment, in the previous quarter, you had mentioned that we had achieved 23% market share in Andhra Pradesh. How has that moved in this quarter? And how are we seeing the trends or the forecast realizations of the regular segment shaping up in the coming quarter?
I'll say the first question. I think there would be no brand anywhere in the world which commands a market share of 58%-60% in the vodka segment, which is Magic. And now the spirit of Kashmir, as Amar was saying earlier, it is going to compete with the imported multinational brands. And I think once you see the packaging and more than the packaging, the way that if you taste the blend, which I always tell is the heart of any of the products, I think this blend would be one of the best blends in the world. And we are very confident that with the pricing what we have taken, it should make a big impact on the industry. Right now, we have started with the state of UP.
And gradually, again, as we have done for Morpheus, in the current year, we will take it to 10 cities.
10 states.
10 states, and as far as Andhra Pradesh goes, I think Andhra Pradesh, we are growing stronger and stronger. So in the current quarter, our market share was 28%. And the brands are doing exceptionally well. So to have 28% is a big achievement of any state. It's highest in the industry. We are clearly the number one. So that is what we believe that hopefully Delhi, then the most awaited after the election is Bihar. They open up. Tamil Nadu opens up. So I think like how Andhra has opened up, we are quite hopeful. Bihar, if the government changes, it becomes wet. And Delhi, definitely the policy has to change where again, it can be a very big movement for all the liquor companies, especially the national companies, especially for Radico. And hopefully Tamil Nadu also opens up.
So these three are the positives which can change the game like Andhra.
Thank you. Thank you. Great clarity, and good luck for the upcoming quarters.
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you, and over to you, sir.
Thank you, everyone, for joining us. Moving forward, we will continue to deliver a strong prestige and above category volume growth driven by our diverse brand portfolio. Secondly, we will further develop our luxury brand portfolio, which we see as a major contributor to our profitability. Furthermore, we are focused on ensuring that our kapspbr operate as efficiently as possible. This will enable us to generate cash, repay debt, and return cash to the shareholders. We look forward to interacting with you on our next funding call. In the meanwhile, if you have any queries, please follow up or feel free to write to us. Thanks a lot.
Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.