Liquor stocks: United Spirits, Tilaknagar Industries, Radico Khaitan fall by up to 7% as Maharashtra raises excise duties

Shares of liquor companies remained under stress on Wednesday after the Maharashtra government announced a significant hike in excise duty on Indian-made foreign liquor (IMFL) and country liquor. The state government has also introduced a new category—Maharashtra-made liquor (MML)—which will be grain-based, to boost its revenue stream.

Weighed down by the development, liquor stocks such as United Spirits , Allied Blenders and Distillers , Tilaknagar Industries , Radico Khaitan , and Piccadily Agro Industries tumbled by up to 7% in early trade today.

United Spirits was the top loser among liquor stocks, falling by as much as 7% in the first hour of trade so far. Meanwhile, the share price of Allied Blenders and Distillers dropped by as much as 6.3%, while Tilaknagar Industries, Radico Khaitan, and Piccadily Agro Industries slid by up to 3%.

Maharashtra is a key market for liquor companies, contributing 10-12% of the total industry volume in India. United Spirits generates around 20-22% of its overall sales from the state, while the number for Radico Khaitan is 7-8%.

On the other hand, shares of Sula Vineyards rallied by up to 11.5%, while United Breweries stocks rebounded nearly 5% from the day’s low and were trading marginally higher by 0.4%. G.M. Breweries topped the gainers’ chart by rising 18%, while Globus Spirits , Som Distilleries, and Associated Alcohols & Breweries were among notable gainers, rising in the range of 1-5%.

Shares of Sula Vineyards and G.M. Breweries, having significant exposure to the wine and beer segments, saw strong buying as these categories have been exempted from the excise duty hike.

On Tuesday, the Maharashtra cabinet introduced sweeping reforms to tighten control and boost tax revenues from liquor. The move is projected to generate an additional ₹14,000 crore annually.

Meanwhile, the equity benchmark indices, the BSE Sensex and the NSE Nifty, were trading higher by 0.15% each in early trade. The 30-share Sensex was up by 107 points at 82,499, while the Nifty50 was at 25,150, up 46 points.

Among individual stocks, Hero MotoCorp, Coal India, M&M, Reliance Industries, ONGC, Bajaj Auto, and JSW Steel were the top gainers. On the flip side, Shriram Finance, BEL, Jio Financial Services, Apollo Hospitals, Adani Ports, HDFC Bank, and Kotak Bank were among the notable losers. 

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