Ladies and gentlemen, good day and welcome to the Radico Khaitan Q4 FY25 Result Conference Call hosted by Dolat Capital Markets Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Himanshu Shah from Dolat Capital Markets Private Limited. Thank you, and over to you, sir.
Thank you, Navya. Good afternoon, everyone. At this moment, we would like to thank Radico Khaitan management team for providing Dolat Capital with the opportunity to host the Q4 FY25 earnings call. We have with us the senior leadership team from Radico Khaitan, Mr. Abhishek Khaitan, MD and CEO, Mr. Amar Sinha, Chief Operating Officer, Mr. Dilip Banthiya, Chief Financial Officer, and Mr. Sanjeev Banga, President, International Business. I will now hand over the call to Mr. Abhishek Khaitan, MD and CEO, for his opening remarks. Over to you, Sir.
Good afternoon, ladies and gentlemen. Thank you for joining us on our Q4 FY25 results conference call. There has been a major development regarding the much-anticipated U.K.-India FTA last evening. While we await the fine print, I'd like to provide a broader perspective before diving into the details of our Q4 results. Given the strong growth of our whiskey portfolio, including Sangam, Royal Ranthambore, After Dark, and 8PM Premium Black, we are among the largest importers of bulk Scotch for blending purposes. Our Scotch import in FY26 is projected to exceed INR 250 crore in landed price, inclusive of import duties. Any reduction in these duties will translate into meaningful cost savings for us. Luxury spirits are a lifestyle category, and pricing plays a crucial role in shaping consumer aspirations.
We do not anticipate altering our pricing strategy as our brands hold a perceived value that resonates with consumers, positioned at a premium compared to existing brands. Our products compete not only with the global brands in India but also internationally. Over the years, each of our luxury brands has carved out a distinct identity. This development is a welcome move and will significantly contribute to our premiumization journey as we continue to focus on creating more luxury brands. The first quarter of FY26 marks an exciting milestone as we prepare to introduce two luxury brands, projects that have been under development for two years. These launches represent a major leap in Radico Khaitan's premiumization journey, reinforcing our confidence that the best is yet to come.
Now, moving on to the quarterly performance, building on the strong momentum from the third quarter, Radico Khaitan delivered an impressive 28% volume growth in Q4 FY25, our highest quarterly growth in the past three years. FY25 has been the best year in our history on all key financial metrics, with the highest-ever turnover of INR 4,851 crore, EBITDA of INR 668, and PAT of INR 341 crore. FY25 was truly a year of transformation for Radico Khaitan, fueled by a commitment to expanded backward integration, enhanced distribution capabilities, including concrete, a robust innovation pipeline, and impactful consumer engagement. Our flagship premium brand, Magic Moments Vodka, has crossed the milestone of seven million cases during the financial year, a true testament to its growing popularity. Adding to this momentum, we are thrilled to welcome Kriti Sanon as our brand ambassador.
With her charisma style and widespread appeal, this partnership is set to elevate Magic Moments to unprecedented heights, redefining the benchmark for premium vodka in India. Continuing our commitment to innovation, we unveiled 8PM Premium Black in a bold new look design to elevate brand imagery while showcasing its distinctive product story, crafted around the harmony of eight select notes. Furthermore, within the first half of the year, we will also enter the super premium whiskey segment, strengthening our presence in high-growth categories and setting new benchmarks in excellence. While innovation remains the cornerstone of our strategy, our immediate priorities center on strengthening our existing portfolio, making targeted marketing investments, and expanding our distribution network. Looking ahead, we are poised for a strong double-digit growth in the Prestige & Above category, enhanced profitability, and a persistent focus on cash flow generation, all driving long-term value creation for our shareholders.
With this, I would now like to hand over the call to our CFO for a detailed operation and financial review. Thank you, and over to you, Dilip.
Thank you, Abhishek. Thank you, everyone, for joining us on this call today. During Q4 of financial year 25, we reported a total IMFL volume of 9.15 million cases, representing a growth of 28% on year-on-year basis. This is the highest-ever volume recorded by Radico Khaitan in a quarter. Prestige & Above category volume grew by 17%. In value terms, the P&A category registered 22% growth. IMFL realization increased by 4.6% on year-on-year basis. Level category volume was impacted due to certain state-specific industry-related issues and ongoing strategic rationalization of the portfolio, which has now returned to a sharp growth trajectory. This was due to a lower base coupled with normalization of state-specific industry issues. Changes in route to the market in Andhra Pradesh contributed 1,500 basis points to our overall volume growth.
It is important to highlight that the Prestige & Above segment, excluding Andhra, the growth has been higher. The recent RTM changes in Andhra Pradesh have progressed well, promoting stability, predictability in the regulatory environment. As a result, we have seen strong traction for our brand portfolio and gained market share from 10% in the first half to over 17% in Q3 and now 23% in Q4, which is highest in the industry. We quickly adapted to the changing environment and created capacity to capitalize on this industry opportunity. Gross margin during the quarter was 43.5% compared to 41% in Q4 of last year and 43% in Q3 of financial year 25. Gross margin improved both on year-on-year basis and quarter-on-quarter basis due to the ongoing premiumization in IMFL business, coupled with a relatively stable raw material scenario.
We are optimistic that the pricing scenario for ENA and grain will remain stable going forward during financial year 26. Ad spend is within our targeted range of 7%-8%. It has been higher during the quarter due to new celebrity engagement and other new brand-related spends. Interest costs increased sequentially due to higher working capital utilization during the quarter. However, we have seen significant liquidation of inventory in Q4. Furthermore, we have also realized significant debt toward the end of the quarter, resulting in a net reduction of INR 114 crore over last year. Going forward, our focus will be on driving profitable growth along with cash flow generation and more efficient working capital management, resulting in net reduction. With this, now we open the floor for Q&A. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abneesh from Nuvama. Please go ahead.
Yeah, congratulations on very good volume growth. My first question is on your first statement on FTA. So I wanted to understand this. It's a competitive market. For example, in Karnataka, where the state government has cut taxes in the premium spirit, obviously, most of the players have passed it to end customers. So in this scenario, when the raw material of Scotch becomes cheaper, two scenarios can be there. One, because it's competitive, the players could cut prices so that it becomes affordable. And because they have higher gross margins, they will be in a position to cut. I note your comment that you don't think pricing cut will happen given it's a premium brand. But I just wanted to take on that.
And second is, could some state governments in compensation, because they suddenly see that prices have reduced in many states, then can they increase taxes on their own? Because state governments need more revenue, and this is one of the ways to achieve that. That's my first question.
Exciting question. First of all, I must say that the FTA with the U.K. has been a very progressive and favorable step that the government of India has taken, and the government needs to be congratulated for the same. As far as the alcohol sector is concerned, the customs duty reduction will result in a 6%-8% consumer price from MRP reduction. Now, in the premium and luxury segment, most international brands are already present in the country. It is very unlikely that reputed foreign brands will reduce their price for this small benefit of 6%-8% to their ultimate consumer. This would also, in fact, dilute the imagery of the premium brands. The companies are likely to mop up this saving and save on their costs rather. That's our understanding of the situation.
There is a chance that there might be some smaller companies with smaller Scotch whisky brands that may come in. But as far as the premium and luxury segment consumer is concerned, there is really no market and traction for cheap Scotch whiskies. So for Radico, cheap Scotch whiskies are no competition to us. Now, with regard to Radico's perspective on business, Radico has always, if you see our track record, in the last few years, we have believed in pricing all our products above the market leader in every category, irrespective of what the price position is for international brands or any other brands in India. The example is very clear. If you see the pricing of Jaisalmer, Royal Ranthambore, Rampur, we are priced much ahead of the competitors.
We are creating, actually, we are creating a portfolio of the best Indian brands, and therefore we do not anticipate any change in our pricing strategy or price positioning. Truly speaking, we see FTA as a big win for India and companies like Radico, which are making India proud and taking it to the world. Radico, as Mr. Abhishek Khaitan mentioned a little while ago, that we plan to import bulk Scotch to the extent of INR 250 crore in FY26 for blending with our products. And that reduction, if it happens, which is likely to happen, will give us substantial cost advantages and a margin uptake. Hence, it is a net positive for Radico. Your second question was whether state excise departments will raise duties. See, state excise departments have the autonomy to make price changes on their local taxes because liquor is a state subject matter.
But then we need to see because every state government today is looking for increasing sales and collecting more. It has been seen in the past that whenever you raise prices beyond a point, it affects the brands adversely. So I don't think it's very difficult to comment as of now. Let's wait and watch.
Sir, one quick follow-up on this. When is the earliest date when your raw material becomes cheaper in terms of Scotch? Any clarity on that?
It depends when the notification will come out. So that only is the government knows. As of now, there's no clarity.
No, my question was not only from a notification date. That was also there. Do you have some forward contract or inventory which could delay that, and by how much?
No, no. The question is the inventory in pipeline is normal inventory, and as and when it is made applicable, after which the import will attract lesser duty. The cost will come down based on that. So just to be very precise, we are not holding huge stocks at all.
Sure, sure. Last question. In Andhra, if you could tell us in terms of the overall industry scale-up post the new reform, anything you want to highlight there, and how do you see FY26 in Andhra?
So let me tell you, Andhra, as we have just mentioned, has progressed very well between new excise policy and route to market change. What is actually happening now is that the market has started to stabilize. It's picking up. And even in the previous year, in fact, 60% of the business was with local players. But in the current regime right now, 60% of the business is with national players and organized players. So it's actually progressing very well. And we hope that the market will not only stabilize, but it will, from here on, continue to grow. New brands are likely to be introduced with the tender that is going to open sometime shortly. And we hope to do well in that. Secondly, most important point is, as far as Radico is concerned, we have a market share now, which is 23%, which earlier in H1 was 10%.
In Q3, it went up to 17%, and now it's 23%. We are the largest players, and this actually supports the point that the consumer there was looking for national and organized players to come in. So that's benefiting us as a company. Our volume growth overall is 28% all India, and substantial growth is also being contributed by AP for all organized brands.
Sure. Thanks. That's all from my side. Thank you.
Thank you. Next question is from the line of Anil Shah from Insightful Investments. Please go ahead.
Yeah, sir. Yeah, hi. So just wanted to get a sense on if you could, on your raw material scenario, has the broken rice from the government's Food Corporation of India started? And generally, how will the raw material situation be in terms of pricing and availability is concerned? And second question is on the Delhi opening up, if you could throw some light in terms of how that state is shaping up. Thank you.
So as far as the raw material scenario is concerned, after the government announced in this phase the Food Corporation of India rice available for ethanol, to the extent the demand from the market has gone to the government, FCI, go down. And that has resulted in the softening of the prices. The prices, which were in the range of around 27,500-28,000, has come down to around 25,000 now.
Okay, so it is a good development, and at this stage this has also impacted the other key raw material like maize, etc., and all that. So that has also seen a correction of INR 2,000 approximately per ton. So what is your second question?
On Delhi opening up, sir, how is that state shaping up? I mean, any progress on that?
No, so let me tell you, the Delhi policy is right now the way it was last year, and the existing policy has been extended for another three months. Hopefully, in July, we'll see the new policy. As a company, we feel that the policy will benefit all national and organized brands.
Okay. Thank you.
Thank you. Next question is from the line of Harit Kapoor from Investec India. Please go ahead.
Yeah, hi, good evening. Should I ask you a question? In light of the recent development yesterday, you had a FY26 target of INR 500 crore for the super premium luxury portfolio. Do you believe that it's kind of wait and watch whether that can be achieved, given that you might see some changes in the competitive environment in the next 12 months, or do you believe that that is something that you're still very confident of hitting?
See, in the current year, we've achieved INR 340 crore, and we've grown by 32%. And in our luxury portfolio, like the way Royal Ranthambore is growing month on month, and also our Jaisalmer and Rampur, and especially with the two new introductions, we are very confident that we'll surpass INR 500 crore.
Fantastic. The second point was on the debt side. So we are up to about close to INR 600 crore of net debt. Just wanted to get your sense of, I know there's a two-year plan of going to zero, almost zero. In FY26, is there a kind of target that you'll half this number, or anything that you can give a sense on?
So Harit, actually, as the debt is coming down now, and we see in two years, so it is next year 2026, around 35%-40% further, and then year after that, almost zero.
Got it. Got it. And last thing was on the commodity environment. I mean, in the current context, did you see bulk Scotch has obviously become cheaper, and ENA and grain has also become cheaper. So on ENA and glass, both of those elements, do you see a kind of a stable environment for the next 6-12 months, at least from where we are right now? Is that the right way to think about it?
So, ENA till now has been stable, but grain has definitely given this thing, and our main input in alcohol, we have a large grain alcohol capacity also. So, there's the advantage of the cost being coming down and all that will come. So, ENA, I actually, when the grain price has gone up, has also not gone two years compared to what the grain price has gone. So, let us see if the demand and supply scenario, but we don't definitely foresee any pressure or inflation on that in 2026.
Got it. Thank you for all the betters.
Glass has seen some correction, and that correction has been twice in the last year. It was 3%, 4%, those kind of corrections were there. Now the scenario looks like they're also stable.
Great. Thanks. Thanks for all the best.
Thank you. Next question is from the line of Vishal Gutka from ASK Investment Managers. Please go ahead.
Yeah. Hi, team. Congrats on a good set of numbers. Two questions from my side. I think on Andhra Pradesh, you achieved 23% market share. So any further opportunities there to improve the market share from here onwards? Because although 23% is a very high number, and the answer to your question is that any states where expecting route to market changes, like maybe in Bihar, the elections are there, and there's a change in Delhi, definitely as you highlighted. Any other state where you're expecting any changes in route to market or policy changes?
As far as Andhra is concerned, see, we are becoming stronger with our whiskeys, like After Dark, which is in the Deluxe segment, which obviously means that we are getting a stronger distribution base. Now, as Mr. Abhishek Khaitan mentioned that we have two luxury whiskeys, one super premium whiskey on the cards over the next six months, and two luxury products in the first quarter. I think with new products coming in, existing whiskeys becoming stronger, there is a strong chance that our market shares may further improve.
Got it.
As far as your question of regulatory changes, we see Delhi being in the near future.
I think as and when it happens.
Yeah, if we are like a prohibition with the election is favorable, then maybe prohibition goes away, which is very good.
Yeah. And, sir, just ancillary question on UP market. So, UP market has gone a lot of policy changes in the last quarter, and I think the new policy is coming. So, if you can just broadly highlight what has happened in the new policy, how has the performance in the month of April, if you can broadly highlight for UP market?
So yeah, so UP, in fact, the best thing that has happened in UP with the new excise policy is that you've got composite shops which have come up, which has expanded the universe of outlets by almost 40%. Another big advantage that has accrued to the industry is that in IMFL, the wholesalers are now paying the excise duty, which means that the industry is lowering its working capital requirement, which is a big plus. This also means that any organized company like Radico or an established player like Radico will create huge benefits because the traction for fast-moving brands will be much more because wholesalers would like to take and rotate it faster. So that's a very big plus which has happened. I think with the increase in the universe, Radico certainly is very optimistic that the market share will also improve. So that's a big win.
In Q4 itself, Radico has seen a 37% growth in P&A segment, and the market share actually has improved to 29% in Q4, from 23% to 29%.
That's a very big number, sir. Okay. Great. Wishing you all the best for future quarters. Thank you.
Thank you. Next question is from the line of Akhilesh Bhatter from IKIGAI Asset Management. Please go ahead.
Oh, hi to you. Congrats. Questions are a good set. I just had a question on the margin side. So when do you expect to catch up to your previous peak margin levels that we had seen in FY20, FY21, and with the headwind that we have right now in terms of the U.K. FTA deal and other headwinds? So what are the tailwinds that you foresee, and what is the timeline for that you're foreseeing as to catch up for margins? Thank you.
So we have improved the EBITDA margin as well as gross margin in this year, FY25 versus FY24. The EBITDA margin is almost improved by 150 basis points. And with the kind of growth in our brand portfolio and P&A being spurred in the growth in FY26 and onward also, so we see a continuous improvement in our EBITDA margin. I think 100 basis point minimum EBITDA margin improvement will be there. And after that, we will have to see how much will be benefit approved through the sponsors and all that. So these are actually our business model is tuned to improve the margins in continuous for three years.
Thank you. Next question is from the line of Bhavdeep Vora from Franklin Templeton Asset Management, India. Please go ahead.
Yeah, thank you for the opportunity. I just wanted to understand with this reduction in the import duty for the imported Scotch. From the perspective of a state government, in terms of the collection of revenue, whether their revenue collection kind of per quart is higher in some of this BIO, BII stuff, or it would be more like the Indian on the prestige side, like the P&A, the prestige, you know, our segment. How does both this compare? Just trying to understand that in terms of what does this do to the competitiveness of the premium Indian IMFL, basically compared to our imported spirits. Maybe your perspective on that would be helpful.
So right now, see, the BIO sector is not very huge in the country, in an industry of 400 million. Basically, 5 million cases is the BII and BIO market. So it's a small niche segment, which is growing, of course. But really, if you ask me, any tax changes doesn't impact and is not comparable with what one gets from the semi-premium and premium segment. In fact, the premium segment in India itself is 18 million cases, and the Deluxe segment is approximately 70 million cases.
Okay.
The tax collection is obviously a much huge.
No, sure. That's fine. But from an incremental perspective, right, so if basically BIO becomes more competitive, right, so maybe now reaching probably INR 2,000 or even below price points in some of the states, so does consumer shift from, say, the Indian P&A, the top end of Indian premium, to some of this imported stuff? And does it kind of is more attractive to government, or how does it impact the income? So how does it work with the revenue?
I mentioned to you a little while ago that, see, this duty reduction at the current rate from 150-75 will only give relief by 6%-8% on the consumer price side. So that's not a very big reduction, actually, if you calculate. And we don't foresee the foreign brands reducing the price of premium brands for this 7-8% because it dilutes the image of such premium brands.
Okay. Okay.
But it also kind of costs for bringing the duty down to 40% over 10 years. So incrementally there is a...
So we cross the bridge as it comes because by then Indian brands are now reaching out to the world, and in the next 10 years, we don't...
Yeah, Indian single malt would be forced to reckon with globally, which has already started happening. And if you see last year, Indian single malt sold more than all the international malt whiskeys in the country.
Okay. Okay. Thanks. Thanks. That's it from me.
Thank you. Participants who wish to ask questions may please press star and 1 at this time. I repeat, participants interested in asking questions may please press star and 1 at this time. Next question is from the line of Palak from MIB Investment Management. Please go ahead.
Hi. So my question is again on the update on U.K....
Sorry, your voice is not clear.
Am I audible now?
Yeah, a little better than. Yeah. Tell us.
Again on the U.K. FTA. So I understand that you're concerned about the pricing aspect.
Oh, sorry to interrupt you. Voice is still not clear. Can't hear you at all.
Is it clear now?
No.
Could you speak a little louder, please?
Am I audible now?
Sorry, man, you are not audible. You might want to reach in my legs.
Thank you. Next question is from the line of Abhijit Kundu from Antique Stock Broking. Please go ahead.
Hi. Congratulations on a very strong set of numbers and another opportunity. My first question was the raw material, the backward integration that you had done for raw material. With the broken rice prices now correcting about 10%, base prices also lower, what would be? There was an expectation that you would save about INR 12-13 per liter on your raw material. So where are we now, and what could be the kind of savings that can happen in FY26?
So the raw material side, as your question is regarding make versus buy, the delta was around INR 12-INR 13 three years back. After that, it has reduced to INR 3 to INR 4, and now it is stabilizing between INR 7 to INR 8. And we see that this kind of this thing will remain, and this is a stable scenario.
Okay. This would be the stable scenario. When you are planning to, say, you are directing two years' time back by the cash reservation, right? I mean, by FY27. In this year, I just wanted a clarification. In FY26, you would reduce your current debt by about 30%-40%, and the rest of it you would reduce in FY27. Is that right, or it would take about three years?
That's correct.
So it will be, I mean, you would be debt-free in two years' time, right?
Yeah, of course.
Another thing, you are launching products, two new products in luxury segment. There was a what happens in the upper-price segment? Because there was a specifically that you would launch something, you would target to launch something in the upper-price segment, in the segment where the likes of Antiquity, Blenders Pride, Signature, they are there. So any plans on that?
So I think we just mentioned to you that before the end of H1, we are already ready to launch the super premium segment, actually, which is on the cards. And it's a huge segment of 18 million cases, which we are targeting, going at double-digit rate.
Okay. Okay. No, I had heard that, but I misinterpreted it. I thought that super premium would be like in the leagues of blended Scotch or form factor, Royal Ranthambore. No, no. So that is basically upper-price segment, which you are talking about.
Yeah. Yeah. That's correct.
Okay. That's it from me. Thanks.
Thank you. Next question is from the line of Pankaj Kumar from Kotak Securities. Please go ahead.
Yes, sir. Thanks for taking my question, and congrats on good set of numbers. Question pertains to, again, on the new launches that we are looking at. So which are the categories where we believe would be the potential or maybe the future opportunity to launch new categories, 18 million cases, one where you talked about?
So.
So, we are really launching in the whiskey segment, which is the super premium whiskey that we are talking about. And that's an 18 million cases market. And before the end of H1. And then we are launching two luxury products in Q1 itself.
Okay. So with these launches, you believe it would be done with the new launches, or just expect to continue in the future?
So with these two launches, which will be in Q1 and Q2 and Q3, I think we, for the time being, are done with. However, the pipeline always continues to be there, but we have to see the justice to the brand launch and with the distribution. So let me clarify this question of yours. See, Radico in the last one decade has always been working on innovations, market research, coming out with new products, filling the gaps. And this practice will continue. We are always doing the research in the market and trying to build on new luxury products. But here on, anything that we do in the years ahead, we only be upscaling. We keep upscaling our price and category as well.
Next, please.
Outstanding amount. So any update on that?
Sorry, your voice?
Could you hear me? Could you just close out for a time, sir?
Yeah. The question is on the Telangana, the outstanding amount that we had from the Telangana state. So any update on that?
Yes. Yes. So first of all, the positive side is that the Telangana government, for all the current supplies, have been paying us regularly within the five period. So there is nothing to worry on the receivables side for all the suppliers. We had some old outstanding dues which have started being released since last month. So that is also continuing.
What would be the current outstanding, including the dues that you had?
Current outstanding, actually, the overdue dues are of the last period is within the INR 100 crore.
₹100 crore.
₹100 crore.
100 crore. Okay. Okay.
We are closing in on the peak.
Okay. So my last question is on the regular category. So of course, we have seen in this quarter very strong growth due to the RTM in AP market. How do you see FY26 in terms of growth guidance for regular category? That's my last question.
See, what is our concentration is more on the P&A category, which we are confident that it will be 15% plus, and regular volumes are back to, I think, regular also should grow 12%-13%.
Okay.
Thank you.
Thank you. Next question is from the line of Sanjay Manyal from DAM Capital. Please go ahead.
Hi, sir. Congratulations on good set of numbers. Just one question I have. Lastly, to date your volumes have been growing, you think that you would require to take another round of CapEx for the further set of increasing capacity for ENA?
See, I mean, about two years back, we had put up a Sitapur unit, which is one of the largest in Asia. And with this, I think we are quite self-sufficient for the next three to four years.
Okay. Perfect. And just on the SPF, I think most of the questions have been asked on that. But which brand specifically would be in the price range where most of the foreign brands are? Where you would be competing with most of the foreign brands of BIO category or BII category?
So we have Royal Ranthambore, which has been priced INR 100 higher than the largest selling Scotch whiskey brand. And we are growing by 50%. And this brand is the brand of the future, and we see great potential.
Okay. Okay. Perfect. Perfect. That's all for me.
Thank you. Next question is from the line of Anurag Jain, an individual investor. Please go ahead.
Good afternoon, sir. Good afternoon, sir. Am I audible?
Yes.
So the previous participant's question on Telangana, there was an echo when management was speaking, so it was not clear. I'll just repeat the question. How are we placed in Telangana in terms of sales and outstanding receivables?
As far as Telangana is concerned, outstanding today is not so much of an issue. Whatever we are supplying, we are getting paid within the specified credit period. As far as old outstandings are concerned, we have the lowest overdue old outstanding, which is below INR 100 crore. Since last month, the government has started paying us that as well. We are hoping that Telangana as a state will perform better now because people are getting paid on time. The industry will grow. We are anyway growing in that state.
All right. Thank you. I have one more question on the export segment. How has been the export performance of the company for FY25 versus FY24?
See, FY24, we had reached a record level. That was the highest ever. Fortunately, we exceeded that in FY25, and we further grew. Current export in terms of volume is about 5% of the total business, and in terms of value, it is about 9%. And it continues to grow.
All right. Thank you. The Australian FTA was signed about three years ago. How has Radico Khaitan's experience in terms of getting market access to Australia? Has the FTA really helped, or is it still a work in progress?
See, in terms of FTA, it was primarily on the wine. In terms of our exports to Australia, we do export our luxury portfolio, which is our single malt and Jaisalmer gin. In terms of our rest of the whiskey or the rum portfolio, Australia also has certain non-tariff barriers in terms of aging and maturation. And the Indian whiskey do not qualify for that. So we have been in discussion with them on removing these non-tariff barriers.
All right. Thank you.
Thank you. Next question is from the line of Vishal Gutka from ASK Investment Managers. Please go ahead.
Yes. I think two questions. First, the regular segment, I think we've seen a bumper growth in the quarter. So what should be our expectation for FY26, given that Andhra policy changes have happened? Shall we expect 20% plus growth in the regular segment? And second question is on Indian Single Malt Association. I think Radico is also a part of it. So I just want to check from you what measures as an association we are taking so that there is no manipulation done by other new entrants who are entering this space. Thank you.
So I'll take the regular question. So first of all, we must say that after nine quarters of a bad period for the regular segment, from Q3 of last year, the regular segment has started bouncing back. Right now, since the previous three nine quarters were bad, there is a low pace, so the growth in the next two quarters would be healthy. And there were many issues relating to states, specific states, with regard to the industry. That's also normalizing. RTM changes maybe have brought the sales back, which we see stabilizing in the year ahead. So as we guided earlier, some time back, we hope to see the regular industry growing at about 10%-12% or 12%-13% in the times ahead.
All right. All right.
In terms of the Indian Single Malt Whisky Association, without Indian single malt, it is still a very nascent category. So the four founding members who are the pioneers and who've been promoting and working really, really hard in creating this category felt there is a need to set certain standards and norms to protect the authenticity and the goodwill of Indian single malt. So that's what the main objective is of this, and as we go along, we're in discussion with various government authorities to set certain specifications and standards for Indian single malt so that everyone conforms to that and we do not dilute the equity and the brand image of Indian single malt in the global market.
Okay. Thank you, sir.
Thank you. Next question is from the line of Palak from MIB Investment Management. Please go ahead.
Hi. Thank you for the opportunity. Am I audible now?
Yeah, yeah. Please go on.
So my question is again under U.K. FTA. So I completely understand your point that there's not going to be any pricing pressure. But my question is.
The voice is not clear.
U.K. FTA.
My question is that there's a welcome move for other players to enter the Indian market, considering this has a very huge potential. I had listened to your morning interview in which you mentioned that you consider marketing and distribute as a very big strength of Radico. So can the player enter the market by collaborating with a national pan-India player? I mean, is this there is going to be a much more choice rate for the customers? So we might see an increase in the competitive intensity in the segment. I just want to know your thoughts on this?
So if I understand you correctly, you're asking, can the foreign brands, the smaller brands, take up national distribution with Indian players? Is that right?
Yeah. In partnership with the national players.
No. So let me tell you, today, as far as the Indian players are concerned, national players are concerned, Radico is the largest. And there are one or two other players. But today, I think the possibility of any smaller company coming and taking up with them seems to be remote. So we don't see that as much of a threat. And there will not be brands which are of significant value because they would be amongst the largest selling brands which are already present in India.
Okay. Good. Thank you.
Thank you. As we have no more questions, we close the call and hand over to the management for closing comments.
Moving forward, we will continue to deliver a strong P&A volume growth driven by our diverse brand portfolio. Secondly, we will further develop our luxury brand portfolio, which will be a major contributor to our profitability. Furthermore, we are focused on ensuring that the capacities operate as efficiently as possible. This will enable us to generate cash, repay debts, and return cash to the shareholders. We look forward to interacting with you on our next earnings call. In the meanwhile, if you have any queries, please follow up with us. Please feel free to write to us. Thank you.
On behalf of Dolat Capital Markets Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.