Archive · 1 Oct 2025
India's Alcohol Beverage Industry Forecasts 10-12% Growth
The Indian alcohol industry is expected to grow by 10-12% in the coming year, mainly due to consistent demand, people buying more expensive drinks, and price increases from state governments.
The beer market is expected to grow faster than spirits, but spirits may see a decrease due to tax changes.
Companies are expected to keep good profit margins and are planning to spend more to expand their businesses.
Even with these investments, the companies' financial health should remain strong.
Indian alcoholic beverage industry is projected to achieve 10-12% revenue growth in FY26.
Volume growth is estimated at 1-2% for FY26.
The beer segment is expected to outperform spirits, with a 4-6% volume increase.
Operating profit margins are anticipated to be stable at 13-14% in FY26.
Capital expenditure is expected to increase to 4-5% in FY26 and FY27.
- Who
- ICRA rating agency
- What
- Forecast of revenue growth for the Indian alcoholic beverage industry
- When
- FY26
- Where
- India
- Why
- Driven by steady demand, premiumization, and price increases.
- Revenue Growth (FY26)
- 10-12%
- Volume Growth (FY26)
- 1-2%
- Beer Volume Growth (FY26)
- 4-6%
- Operating Profit Margin (FY26)
- 13-14%
- Capital Expenditure (FY25)
- 3-4% of operating income
- Capital Expenditure (FY26/FY27)
- 4-5% of operating income
Sources
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