Alcobev Firms Poised To Stay On Double-Digit High

New Delhi: Alcoholic beverage (alcobev) manufacturers in the country will see their revenue grow 8-10 per cent to Rs5.3 lakh crore in financial year 2025-26, keeping up the momentum of a compound annual growth rate (CAGR) of 13 per cent over the three preceding fiscals. The operating profitability will increase 60-80 basis points (bps), supported by continuing premiumisation, according to a Crisil report released on Friday. Consequently, credit profiles will remain strong, driven by healthy accruals, deleveraged balance sheets, and absence of large debt-funded capital expenditure (capex), it states.

The Crisil report is based on a study of 25 liquor companies, accounting for around 12 per cent of the organised alcobev industry revenue.

The industry is dominated by spirits, which contribute 65-70 per cent of total revenue, with the remaining coming from beer, wine and country liquor. Spirits are alcoholic beverages produced through distillation, whereas beer and wine are made via fermentation.

The industry volume will grow 5-6 per cent, driven by urbanisation, increase in drinking population and rising disposable income, according to the report.

Crisil Ratings director Jayashree Nandakumar said, “This fiscal, healthy volume and ongoing premiumisation will support revenue growth despite the absence of major price revisions. Revenue from premium and luxury segments, priced at over Rs1,000 per 750 ml, is expected to grow around 15 per cent.