Cheers to Growth: Indian Alcoholic Beverage Market's Double-Digit Surge

Indian alcoholic beverage makers are poised to see a robust 10-12 percent revenue growth in the current fiscal year, thanks to increased premiumisation and price hikes approved by various state governments, a report from the rating agency Icra reveals.

While the overall volume growth is pegged at a modest 1-2 percent, the beer segment is expected to lead the charge with a projected 4-6 percent growth due to continued strong demand, surpassing the spirits sector which may suffer a decline due to higher taxes and increased selling prices.

Operating margins are projected to be stable at 13-14 percent, aided by price increases and stable input costs. Despite rising capital expenditures, financial leverage and debt metrics are likely to remain healthy, ensuring continued strong performance in the Indian alcoholic beverage sector.