Indian alcoholic beverages to see up to 10% revenue growth in FY25: ICRA

Alcoholic beverages (alcobev) companies in India are expected to report a revenue growth of 8 to 10 per cent in this financial year supported by a revival in consumption of spirits, according to a report by rating agency ICRA.The growth in the topline will also be helped by the premiumisation trend, it added.Moreover, "revenue increase in FY2025 will additionally be supported by the price hikes granted by a few state governments in the current fiscal," it said.However, operating profit margin (OPM) is expected to remain stable at 12-13 per cent in FY2025 due to decline in packaging material cost, despite increase in grain prices in H1 FY2025."During Q1 FY2025, the spirits industry reported a 9 per cent year-on-year increase in revenues, supported by 5-7 per cent improvement in realisations, while volumes grew by 2-4 per cent," it said.Even the beer industry witnessed a higher revenue growth of 12 per cent in Q1 FY2025 owing to 3-5 per cent increase in volumes and 7-9 per cent