The Daily Brief India's alcohol market gets hit with a curveball
Nov 10, 2025
India's alcohol market faces a slowdown, influenced by varied company performances and state regulations. Radico Khetan excels with a 34% sales growth, while United Breweries struggles due to rising costs and a drop in beer volume. Recent excise changes in Maharashtra hike prices but alter market dynamics. The shift toward premium offerings captures evolving customer preferences, especially among younger demographics. Amidst challenges, states grapple with fiscal health, revealing a complex web of taxation and economic disparity that shapes India's market landscape.
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Premium Spirits Outperform Mass Beer
- Premium-focused spirit makers recorded strong profits while mass-market beer firms struggled this quarter.
- Capacity reopening and cost leverage boosted Radico's sales and profits dramatically.
Divergent Outcomes Within The Same Industry
- United Spirits grew revenue and expanded EBITDA but saw net profit impacted by higher taxes and costs.
- United Breweries' sales, margins and profits collapsed as operating and other costs ballooned.
Maharashtra's Tax Shakeup
- Maharashtra hiked excise and created a low-tax 'Maharashtra-made' category, which crushed mid-range outsiders.
- Beer and wine were exempt, letting breweries like United Breweries pick up diverted demand in the state.