Liquor stocks plunge up to 5% as Maharashtra govt hikes excise duty on IMFL

Liquor stocks, including Allied Blenders & Distillers, United Spirits, Radico Khaitan, and Tilaknagar Industries, came under sharp selling pressure right from the opening bell on Wednesday, June 11, falling up to 5%, as investor sentiment turned bearish after the Maharashtra cabinet approved revenue-boosting changes to the excise policy.

These included a hike in excise duty on Indian Made Foreign Liquor (IMFL), country liquor, and imported alcohol, along with the introduction of a new category—Maharashtra Made Liquor (MML). This is the first revision of excise duty in Maharashtra since 2011.

As per the cabinet's decision, excise duty on Indian Made Foreign Liquor (IMFL) will be raised from three times to 4.5 times the declared manufacturing cost (up to ₹260 per bulk litre), while duty on country liquor will rise from ₹180 to ₹205 per proof litre, PTI reported.

Revised minimum retail prices for 180 ml bottles are country liquor ₹80, MML ₹148, IMFL ₹205, and premium foreign liquor ₹360, the report showed.

The state has also introduced a new category — grain-based Maharashtra Made Liquor (MML) to be produced exclusively by local manufacturers. MML brands will require new registrations. The report said that FL-2 and FL-3 licences (for sealed bottle and on-premise sales, respectively) can now be operated through conducting agreements, subject to an additional 15 per cent and 10 per cent annual licence fee, respectively.

The decision is expected to raise the state’s annual excise collection by approximately ₹14,000 crore.

G M Breweries, Sula Vineyards and Som Distilleries & Breweries spike up to 18%

While Allied Blenders & Distillers, United Spirits, and Radico Khaitan are taking a severe beating on Dalal Street, other liquor stocks such as G M Breweries, Sula Vineyards, and Som Distilleries & Breweries have gained strength as investor expectations grew that the hike for spirits will boost beer and wine sales in the state.

Shares of G M Breweries jumped 18% to 845 apiece, while those of Sula Vineyards and Som Distilleries & Breweries have gained 11.3% and 4% respectively.

G M Breweries has the facility to blend and bottle both Indian Made Foreign Liquor (IMFL) and country liquor, but its focus has primarily been on country liquor due to competitive market conditions in the IMFL segment. The company has made steady progress in the country liquor business over the past few years.

“Even though not much official statistics are available about the production of country liquor by various manufacturers, the data gathered from The State Excise Department shows that the company contributes about 25 to 30 % of the total Excise duty for country liquor in the whole of Maharashtra,” the company said in its FY25 annual report.

Meanwhile, Sula Vineyards has a strong presence in Maharashtra, operating two vineyard resorts in Nashik under the brands 'The Source at Sula' and 'Beyond by Sula,' with a combined total of over 100 rooms.

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