This change in consumer behavior is highlighted in Radico Khaitan’s Q1 FY2027 operational data, which shows that demand for premium spirits has overwhelmingly surpassed that of mass-market brands.
The trend toward premiumisation is no longer limited to upscale metro lounges; it has become the central consumer trend in state markets. Drinkers are increasingly turning away from lower-end mass liquor in favor of aspirational brands that offer superior quality and enhanced status.
In the first quarter of FY2027, strong consumer demand propelled Radico Khaitan’s ‘Prestige & Above’ (P&A) portfolio to a remarkable 35.8% year-over-year volume increase, reaching 5.22 million cases. In contrast, the mass-market ‘Regular & Others’ segment saw a decline of 15.1%, totaling 4.61 million cases.
For the first time, premium spirits comprised the majority of total volume consumed, rising to 53.1% of total own volume from 41.5% in the previous year. In revenue terms, these premium options generated ₹970.0 crore, accounting for 76.8% of all Indian-Made Foreign Liquor (IMFL) net revenues.
| Market segment | Q1 FY2027 Volume | YoY Volume Growth | Q1 FY2027 Net Revenue | |
| Prestige & Above (Premium) | 5.22 Million Cases | 35.8% | ₹970.0 crore | 76.8% |
| Regular & Others (Mass) | 4.61 Million Cases | -15.1% | ₹289.3 crore | 22.9% |
This growing preference for high-quality spirits is supported by favorable pricing and regulatory dynamics. While price increases contributed 75 basis points to gross margin improvement, future tariff reductions from the India-UK Free Trade Agreement are expected to lower retail prices on select scotch-blended whiskies by approximately 7%, making it easier for aspirational drinkers to upgrade their home bars.
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Beyond whisky, consumer tastes are diversifying into versatile, social-drinking categories. The rise of modern cocktail culture, expanding nightlife in tier-1 and tier-2 cities, and increased acceptance among younger consumers have initiated a swift surge in white spirits. Vodka’s market presence within the IMFL sector increased significantly from 4.6% in Q1 FY2026 to 6.1% in Q1 FY2027.
A driving force behind this category shift is Magic Moments Vodka, which currently commands 60% of the domestic vodka market. The brand recorded a remarkable 43% year-over-year growth, achieving over 3.25 million case sales in a single quarter, largely thanks to localized flavor innovations through the ‘Flavours of India’ range that includes profiles like ‘Jamun SpicyMint’, ‘Alphonso Mango’, and ‘Thandaai’.
Dark spirits are also undergoing a similar transformation, with consumers seeking modern packaging and a premium aesthetic. After a robust 63% volume growth in FY2026, ‘After Dark Blue Whisky’ was reintroduced in Q1 FY2027 with a sleek, contemporary design across 21 states. ‘8PM Premium Black Whisky’ followed suit, expanding its reach across 24 states with bold packaging aimed at younger audiences. At the luxury end, domestic craft brands are winning over discerning drinkers, with ‘Jaisalmer Indian Craft Gin’ capturing a 50% market share in India’s premium gin sector, while ‘Rampur Indian Single Malt’ has broadened its market presence across 50 nations and 22 Indian states.
This nationwide shift in purchasing behaviors has led to record top-line performance, with net revenue reaching ₹1,683.7 crore (+11.8% YoY) and EBITDA climbing 50.9% to ₹348.1 crore. Reflecting the sustainability of these changing consumer trends, full-year volume growth expectations for the premium portfolio have been adjusted to over 25% for FY2027.
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(Edited by : Ajay Vaishnav)
