India’s liquor sales rebounded in the year ended March, helped by stronger demand for premium spirits with beer makers overcoming one of the wettest summers in recent years amid rising costs.
Sale of spirits by volume across whisky, rum and vodka grew 4% in FY26 to 440 million cases, compared with 1.6% growth a year earlier, according to executives citing excise data. Beer volumes also rose 4% to 474 million cases, despite heavy rains disrupting sales during the crucial summer season. The recovery indicates improving discretionary spending.
This was especially true of urban markets, where drinkers shifted to superior brands.
“From a financial performance perspective, the year has been encouraging,” Radico Khaitan managing director Abhishek Khaitan said on an earnings call. “A better portfolio mix, relatively benign input costs and the benefit of scale have helped us improve margins and returns.”
India’s spirits growth continued to be led by premium products as mass-market demand remained weak because of inflation and higher taxes in several states. Whisky, which accounts for more than 63% of the country’s spirits market, grew 6% in the premium segment while volumes in the regular category fell 4%, according to the data. Premium rum and vodka volumes rose, by 20% and 33% respectively, while the regular segment expanded 6%.
Companies such as Pernod Ricard, Diageo and Radico Khaitan have stepped up launches of premium brands to target younger consumers and urban drinkers. Such products now account for nearly half the market by value, industry executives said.
Pernod Ricard chief financial officer Hélène de Tissot said on a recent earnings call that India continued to benefit from “dynamic consumer fundamentals,” driven by strong demand and continued premiumisation.
Sale of spirits by volume across whisky, rum and vodka grew 4% in FY26 to 440 million cases, compared with 1.6% growth a year earlier, according to executives citing excise data. Beer volumes also rose 4% to 474 million cases, despite heavy rains disrupting sales during the crucial summer season. The recovery indicates improving discretionary spending.
This was especially true of urban markets, where drinkers shifted to superior brands.
“From a financial performance perspective, the year has been encouraging,” Radico Khaitan managing director Abhishek Khaitan said on an earnings call. “A better portfolio mix, relatively benign input costs and the benefit of scale have helped us improve margins and returns.”
India’s spirits growth continued to be led by premium products as mass-market demand remained weak because of inflation and higher taxes in several states. Whisky, which accounts for more than 63% of the country’s spirits market, grew 6% in the premium segment while volumes in the regular category fell 4%, according to the data. Premium rum and vodka volumes rose, by 20% and 33% respectively, while the regular segment expanded 6%.
Companies such as Pernod Ricard, Diageo and Radico Khaitan have stepped up launches of premium brands to target younger consumers and urban drinkers. Such products now account for nearly half the market by value, industry executives said.
Pernod Ricard chief financial officer Hélène de Tissot said on a recent earnings call that India continued to benefit from “dynamic consumer fundamentals,” driven by strong demand and continued premiumisation.
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