Beer at a new high: Sales up more than 40% in the first six months of the financial year

Brewery growth: According to Excise Department data, beer sales have increased from 195.27 million cases between April and September 2025 to 275.96 million cases between April and September 2026. | Photo credit: File photo

Sales of beer in Karnataka, whose prices have come down following the rationalization of rates and the introduction of the ‘Alcohol in Beverage’ (AIB) regime, have seen a growth of 41.32% in the first six months of this financial year compared to the corresponding period of 2025. However, sales of Indian Made Liquor (IML) have grown by only 1.14%. During this period, the total collection of excise taxes increased by 14.35%.

The marginal growth in IML sales is attributed to an increase in the cost of high-alcohol IMLs, which were previously cheaper and widely consumed, and which accounted for more than 70% of total IML sales.

The AIB regime introduced in Karnataka levies excise duty on the basis of pure alcohol content. This has resulted in high-alcohol IMLs, which are widely consumed, becoming more expensive, while the prices of lower-alcohol premium brands have fallen. The AIB scheme, which is part of the excise duty reforms, is linked to the social cost and impact of alcohol consumption, which has been developed by the committee.

Cases sold

According to data from the Excise Department, beer sales rose from 195.27 million cases between April and September 2025 to 275.96 million cases between April and September 2026, a growth of 41.32%. The July-September quarter alone saw an increase of 49.69%, with 126.68 million cases of beer sold compared to 84.63 million cases in the same period last year.

However, IML sales rose marginally from 342.93 million cases between April and September 2025 to 346.83 million cases, an increase of 1.14%. In the first quarter of 2026, IML’s sales grew by only 0.77%, with 175.14 million cases sold in the first quarter of 2025, compared to 173.81 million cases.

Total income

In terms of revenue, the excise department reported an overall increase of 13.39%, with ₹22,191 crore collected between April and September 2026 as against ₹19,570 crore in the corresponding period of 2025.

While IML sales saw only marginal growth, IML revenue grew by 13.32%, with ₹17,424 crore collected in 2026 as against ₹15,376 crore in 2025.

Revenue from beer sales increased from ₹ 2,836 crore in 2025 to ₹ 3,377 crore in 2026, a growth of 19.08%.

Published – 7 Oct 2026 06:01 IST