Summary:

India's alcoholic beverage market is predicted to grow 8–10% in FY26, reaching Rs. 5,30,000 crore (US$ 61.97 billion), following a 13% CAGR over the previous three years. Operating profitability may increase by 60–80 basis points due to premiumisation and reduced debt-funded expenditure. Spirits generate 65–70% of sales, with the remainder coming from beer, wine, and country liquor. Urbanisation, a growing drinking population, and higher disposable incomes contribute to a 5–6% volume rise.

Premium and luxury spirits priced above Rs. 1,000 per 750 ml are expected to increase by 15% in FY26, raising their share of total spirits revenue to 38–40%. Despite small increases in input costs, higher sales and pricing will boost profitability. Key raw materials—Extra Neutral Alcohol and barley—account for 60–65% of expenses, with prices rising modestly. Glass bottle prices remain stable, and 70–75% capacity utilisation supports no major capital expenditures. Operating profitability and credit indicators are expected to improve.

Source: IBEF

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