Research Report

ICRA forecasts its sample set of Indian alcobev companies to report 10-12% revenue growth in FY2027, driven by steady demand and rising consumer preference for premium products. The OPM is likely to be maintained at 13- 14% in FY2027.

ICRA forecasts the Indian alcoholic beverages (alcobev) industry to post mild volume growth of 1-3% in FY2027, led by 5-7% expansion in beer volumes, even as overall spirits (IMFL and CL) volumes are expected to decline by 4-6%. While demand and consumer preferences remain steady for beer, in the spirits segment, a value shift is underway in favour of the premium and the prestige spirits and away from the economy and the regular segments, against the challenging backdrop of excise-led price hikes. Despite muted industry volume growth, ICRA’s sample set is projected to report 10-12% revenue growth in FY2027, supported by premiumisation, favourable product mix, and higher realisations.

Spirits volumes declined by around 3% in FY2026, following a 2% contraction in FY2025. This was primarily due to excise-led price hikes in select states, inflationary pressures and a continued consumer shift towards premium products. In contrast, beer volumes outperformed, growing by around 8%.

Exhibit 1: Trend in Domestic Spirits Consumption

Source: Centre for Monitoring Indian Economy (CMIE), ICRA Research