• ICRA forecasts the Indian alcoholic beverage (alcobev) industry to register a volume growth of around 1-2% in FY2026. The beer segment volumes are projected to grow by around 4-6% due to steady demand, while the spirits (IMFL and CL) segment volume may see a similar decline, attributed to relatively higher taxation and increased selling prices. ICRA expects its sample set of Indian alcobev companies to register a revenue growth of 10–12% in FY2026, driven by increase in the selling prices approved by various state governments and a shift in product mix to high value products, even though the volume growth is projected to remain modest.
• In FY2025, spirits volumes had witnessed around 2% decline, following a similar 3% drop in FY2024. This was primarily due to price increases driven by significantly higher taxes imposed by certain state governments, inflationary pressures, and a growing consumer shift towards premium products. In contrast, beer consumption saw a year-on-year volume growth of around 3% in FY2025, outperforming spirits.

Exhibit 5: Quarterly Revenue Trend for ICRA’s Sample Set of Spirits Manufacturers

Source: Company data; ICRA Research; Based on ICRA’s sample of six listed spirits manufacturers – Associated Alcohols & Breweries Limited, GM Breweries Limited, Mohan Meakin Limited, Radico Khaitan Limited, Tilaknagar Industries Limited, and United Spirits Limited.