How much does Radico Khaitan spend on advertising?

6.9% of IMFL sales in Q1 FY27, up from 5.8% a year earlier. The company expects to maintain 6% to 8% of IMFL revenue.

How did the premium portfolio perform?

Prestige & Above volume rose 35.8% to 5.22 million cases, with net revenue up 36% to Rs 970 crore.

What happened to regular IMFL?

Revenue from regular and other IMFL products fell 17.3%, and non-IMFL revenue fell 3.5%.

News

Radico Khaitan Lifts Ad Spend to 6.9% of IMFL Sales as EBITDA Jumps 51%

Ad Tribe! Bureau1 hour ago2 min read

Illustration of a spirits bottle and tumbler marking Radico Khaitan's Q1 FY27 results

Radico Khaitan raised advertising and sales promotion spending to 6.9% of Indian-made foreign liquor sales in the first quarter of FY27, up from 5.8% a year earlier, as EBITDA rose 50.9% to Rs 348.1 crore. The company said it expects to hold A&SP at roughly 6% to 8% of IMFL revenue, though quarterly spending may vary.

A&SP spend: 6.9% of IMFL sales, against 5.8% a year earlier
Stated range going forward: 6% to 8% of IMFL revenue
Prestige & Above volume: 5.22 million cases, up 35.8% year on year
Prestige & Above net revenue: Rs 970 crore, up 36%
Total IMFL volume: 10 million cases, up 2.8%
Net revenue from operations: Rs 1,683.7 crore, up 11.8%
EBITDA: Rs 348.1 crore, up 50.9%, with margin at 20.7% against 15.3%
Total comprehensive income: Rs 225.4 crore, up 70.5%
Declines: regular and other IMFL revenue down 17.3%, non-IMFL down 3.5%

Spending More Behind a Smaller Volume Base

The two headline numbers pull in opposite directions and that is the story. Total IMFL volume grew 2.8%. Prestige & Above volume grew 35.8%.

In other words, the company is selling only slightly more liquor overall while selling substantially more expensive liquor, and revenue from regular IMFL fell 17.3% as that shift happened. This is deliberate portfolio surgery rather than growth.

The advertising number follows directly from it. Premium spirits require brand investment in a way that regular IMFL does not, because the purchase is discretionary and image-led rather than habitual and price-led. Lifting A&SP from 5.8% to 6.9% of sales while the premium mix expands is the marketing cost of moving a portfolio upmarket.

The margin outcome suggests it is working. EBITDA margin expanded to 20.7% from 15.3%, which is a large move in a single year and indicates the premium mix is more than paying for the additional marketing.

What the Company Says

Abhishek Khaitan, Managing Director at Radico Khaitan, attributed the result to premiumisation, saying the strategy continues to deliver strong results as the company begins FY2027 with another quarter of robust 36% growth in the Prestige & Above segment and significantly improved profitability.

He said the premium portfolio continued to significantly outpace industry growth, reflecting the strength of the brands, innovation capabilities and disciplined execution.

For media planners the useful figure is the stated 6% to 8% band. A publicly committed spending range on a revenue line that is itself growing fast gives a reasonably legible forward view of the category's advertising budget, which spirits advertising in India rarely offers given the restrictions on how the category can advertise at all.