Liquor stocks: Radico Khaitan, Globus, United Spirits, UBL soar up to 7%

Liquor stocks: Karnataka Chief Minister Siddaramaiah today announced a shift to a global taxation standard and the complete deregulation of alcohol pricing.

Breweries & Distilleries stocks price today

 

Shares of breweries & distilleries companies moved higher by 7 per cent on the National Stock Exchange (NSE) in Friday’s intra-day trade in an otherwise weak market on reports that the Karnataka Chief Minister Siddaramaiah today announced a shift to a global taxation standard and the complete deregulation of alcohol pricing.

 

Among individual stocks, Radico Khaitan (₹2,738), Tilaknagar Industries (₹457.75) and United Spirits (₹1,417.90) rallied 7 per cent each in intra-day trade. United Breweries (₹1,731), Allied Blenders and Distillers (₹473.30) and Globus Spirits (₹884.30) were up 5 per cent each. In comparison, the Nifty 50 was down 0.77 per cent at 24,574.40 at 02:03 PM.

 

 

Why liquor stocks rallied on Friday?

 

Presenting his record 17th budget the chief minister introduced the Alcohol-in-Beverage (AIB) excise duty structure. Starting April 2026, taxes will be levied based on actual alcohol content rather than total volume. This transition will be phased in over the next three to four years to avoid market disruption, the Deccan Herald reported.

 

Under the proposed reforms, government-administered price fixation will be deregulated, allowing producers to place their products within slabs based on market considerations. The government also plans to promote tourism linked to the alcohol industry by allowing distilleries and breweries to conduct tasting sessions and sell products manufactured on their premises to visiting tourists, News18 reported.   

 

Emkay Global Financial Services view on alcoholic beverages sector

 

Tax hikes in the state budget have been relatively low vs expectations of sharp hikes, given that the state government needs to fund social welfare schemes.

 

Amid state budgets announced so far, Uttar Pradesh (UP) remains a progressive state, with policy changes in the state budget aligned to boost consumption and develop opportunities in the state. While beneficial for all players through increased transparency, Radico Khaitan stands as the primary beneficiary of regulatory shifts in its fortress state, analysts at Emkay Global Financial Services said in alcoholic beverages sector update.

 

The excise policy for 2026-27 sets an all-time-high revenue target of ₹71,278 crore, which is 13 per cent higher than the current fiscal target of ₹60,000 crore. The Uttar Pradesh Excise Policy 2026-27 presents a structural shift that favors transparency (transaction via portal), premiumization (label registration fee reduced, allowing domestic super-premium brands in premium vends), export-led growth (reduced fees for exports of bulk alcohol as well as bottled products). The state is pivoting toward a ‘Cash and Carry’ retail model, which effectively eliminates credit risk for wholesalers and shifts the duty burden to the point of retail procurement, the brokerage firm said.  ALSO READ: IPO Calendar | Gold outlook |  Silver outlook ===============================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.