Alcoholic beverage manufacturers (Alcobev) in the country will see that income grows 8-10 percent to ₹ 5.3 Lakh Crore in fiscal year 2026, maintaining the impulse after a compound annual growth rate or 13 percent over the three previous prosecutors, according to a report of.
The market intelligence agency also added in the report that operational profitability will increase 60-80 basic points (BP), backed by continuous premiumization. Consistently, credit profiles will be strong, promoted by healthy Africa, delevera balances and absence of a large capital -funded capital spending (CAPEX)
The industry is dominated by spirits, which contribute to 65-70 percent of total income, with the remuneration from beer, wine and liquor in the country. Spirits are alcoholic cases produced through distillation, while beer and wine are performed by fermentation. The volume of the industry will grow from 5 to 6 percent, driven by urbanization, the increase in alcohol consumption population and the increase in available income.
Jayashree Nandakumum, director, Crisil Ratings Said, “This Fiscal, Healthy Volume and Ongoing Premiumationation Will Support Revenue Growth Lieve The Absence of Major Price Revision. Per 7000, per 7000 per 7000, per 7000 per 7000, per 7000 per 7000 per 7000, per 7000 by 7000, by 7000 by 7000, by 7000 for 7000, ₹ 000 by 7000. The contribution of these segments will increase to 38-40 percent of the income of the spirits this prosecutor compared to 31-33 percent in the fiscal year 2023 “.
Crisil’s qualifications said that the highest volumes and achievements would support the profitability of the players through a better contribution and absorption of costs, despite a marginal increase in entry costs. The main raw materials to make spirits and beer Extra neutral alcohol (ENA) and barley, which together represent around 60-65 percent of the total costs of the material. The rest is mainly used to package, especially glass bottles.
In addition, the report added that ENA prices are expected to increase by 2-3 percent in the current year because or a greater demand for the ethanol mixing program, although the offer is also increasing.
According to the report, barley prices are likely to increase by 3 to 4 percent due to the tight supply and a strong demand. The prices of glass bottles are expected to remain firm as demands and supply remain stable. However, alcohol companies are expected to increase prices by 3-4 percent due to a change towards premium products, the report added.
The constant growth of volumes has encouraged manufacturers to expand capacities by 15-20 percent in the last two prosecutors. The industry is currently operating with an use of 70-75 percent, leaving enough space to meet demand. Therefore, it is not expected that the CAPEX financed by the important debt is this fiscal qualification and chrism added.
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Posted on May 17, 2025
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