Volume growth is expected to range from 1 to 2 per cent in FY26, according to a report by ratings agency ICRA.

The beer segment is projected to outperform spirits, with volumes forecast to grow by 4-6 per cent in the same period, continuing the trend from the previous year due to steady demand, the report said.

In contrast, spirits, including Indian-made foreign liquor and country spirits, are expected to decline due to higher taxation and increased selling prices.

ICRA projected that operating profit margins for its sample set of companies to remain stable at 13-14 per cent in FY26 supported by largely stable input costs, following a 100 basis point increase to 13.9 per cent in FY25.

In FY25 price hikes granted by various state governments helped offset the increase in non-basmati ric

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