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Premium liquor portfolios lift June-quarter growth as costs test margins
India’s liquor makers reported premiumisation-led June-quarter growth: Radico’s profit rose 76% and USL’s 51.6%, while UBL and ABDL faced cost and policy pressure. Premium portfolios expanded across spirits, beer and wine, while Tilaknagar gained from Imperial Blue integration.
The numbers
Figures from ET Retail,
| Radico Khaitan net profit rose 76% to Rs 229.60 crore; revenue rose 13.22% to | Rs 5,867.69 crore |
|---|---|
| Radico P&A volume rose 35.8% to 5.22 million cases; targets over 25% P&A volume growth in FY27 and | around 20% EBITDA margin |
| United Spirits net profit rose 51.6% to Rs 391 crore; revenue rose 5% to | Rs 6,113 crore |
| Allied Blenders net profit fell 18.65% to Rs 45.42 crore; revenue rose 5.8% to | Rs 984 crore |
| Allied Blenders P&A share reached 59.3% of sales value; gross margin rose 277 basis points to | 46% |
| United Breweries net profit fell 9.64% to Rs 166.28 crore; revenue rose 10% to Rs 5,919.44 crore; premium volume rose | 17% |
| Tilaknagar revenue rose 165.4% to Rs 2,252.42 crore; PAT fell 64.3% to | Rs 31.59 crore |
| Sula Vineyards net revenue rose 3% to | Rs 112.9 crore |
Also in the report
- United Spirits P&A growth was 10.1%; 14.8% NSV growth excluding Maharashtra
Why it matters to operators and investors
The results strengthen the case for acquiring or partnering with premium spirits, beer and wine brands that can accelerate portfolio mix upgrade and value-led growth.
What to watch next
- Quarterly gross-margin trend versus ENA, glass, aluminum and packaging inflation
- State excise-policy changes, price approvals and label-registration timelines
- Premium-and-above volume/value growth at Radico Khaitan, United Spirits and United Breweries
- Realization growth relative to volume growth and evidence of downtrading in entry-price segments
- Monsoon, rural demand and urban on-trade consumption indicators
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- Advertising-and-promotion spend as a percentage of sales and new premium product launches
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Track premium-and-above net sales growth versus total volume growth; sustained double-digit mix growth should precede earnings upgrades.
- Watch whether spirits leaders take selective price increases and retain volumes, particularly in high-growth premium states.
- Expect greater marketing, innovation and distribution investment behind premium whisky, vodka, gin, rum and ready-to-drink extensions.
- Monitor beer companies for packaging-cost mitigation, premium SKU expansion and state-level price resets before expecting margin recovery.
- Look for portfolio acquisitions, brand licensing deals and capacity additions as incumbents seek premium shelf space and consumer occasions.
The counter-case
The case against this reading — not reported by the source.
Premiumisation may be masking weaker mass-market demand rather than signalling broad-based category health. High premium-volume growth can come off a small base, while margin gains remain vulnerable to glass, ENA, packaging and barley costs, state excise changes, route-to-market restrictions and aggressive discounting. If consumers trade down amid inflation or weaker discretionary spending, premium portfolios could lose momentum quickly.
The source
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