United Spirits, other liquor stocks crack, while Sula shares soar 12% as Maharashtra hikes excise duty

The hike in excise duty is the steepest hike in liquor duty by percent terms since 2011 from the Maharashtra government.

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26 Aug, 2025 12:21

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Liquor stocks fell, losing their cheer during the Wednesday, June 11 session, as the Maharashtra government's latest move to hike the duty prices on Indian Made Foreign Liquor (IMFL), causing shares of alcohol players to see a solid hangover.

At 9.20 am, prominent alcohol players such as United Breweries, Allied Blenders & Distillers, Radico Khaitan, United Spirits, among others, took a sharp beating in trade, cracking up to 5 percent in trade.

On the flip side, Sula Vineyards, GM Breweries and Som Distilleries surged up 5.5 percent and 12 percent respectively.

The reason behind the soaring prices is that the investors are expecting these companies, which are based out of Maharashtra, to benefit from the newly announced Maharashtra-made liquor category.

Under the new rates approved by the Devendra Fadnavis-led cabinet, the excise duty on IMFL will increase from three times to 4.5 times the declared manufacturing cost (up to Rs 260 per bulk litre). Country liquor duty will rise from Rs 180 to Rs 205 per proof litre. This move is likely to generate an additional Rs 14,000 crore annually.

Revised minimum retail prices for 180 ml bottles have also been notified:

Country liquor: Rs 80 (Rs 70 earlier)
Maharashtra Made Liquor (MML): Rs 148 (new initiative)
IMFL: Rs 205 (Rs 110-115 earlier)
Premium foreign liquor: Rs 360 (Rs 210 earlier)

This marks the steepest hike in liquor duty by percent terms since 2011. This hike is expected to push up the Maximum Retail Price (MRP) of Indian Made Foreign Liquor (IMFL) by 30 percent to 50 percent. The state currently accounts for around 10 percent to 12 percent of the country’s total liquor industry volume.

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Further, as part of broader reforms, the Maharashtra state cabinet has also approved the creation of an AI-enabled integrated control room to oversee operations of distilleries, manufacturers, and wholesalers, aiming to improve transparency and regulatory efficiency.

Additionally, a new divisional office will be established in Mumbai and surrounding areas, along with superintendent offices in Thane, Pune, Nashik, Nagpur, and Ahilyanagar, to strengthen enforcement and curb smuggling and the sale of illicit alcohol.

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