United Spirits, United Breweries Shares Surge Up to 6.5% Amidst Karnataka Government's Liquor Policy Revamp

Karnataka Liquor Policy Revamp Boosts Shares of United Spirits, United Breweries

On March 6, United Spirits and United Breweries shares rose by over 6.5% following the Karnataka government's announcement to revamp its liquor policy. The new policy will scrap government-administered price controls on alcoholic beverages, effective from April 2026.

The policy change is expected to benefit beer and liquor makers, who will no longer require government approval to sell their products. The state plans to introduce an Alcohol-in-beverage (AIB) based excise duty structure, which will tax alcohol based on its strength. This move is expected to reduce pricing complexity, as the number of pricing slabs will be reduced from 16 to 8.

Brokerage Nuvama maintains a 'buy' rating on United Spirits, United Breweries, and Allied Blenders. As of 1:36 pm on March 6, United Spirits shares were trading 5.5% higher at Rs 1,398.9 apiece, while United Breweries shares climbed nearly 4% to Rs 1,712 apiece.

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The Karnataka government's policy change is expected to benefit major players in the liquor industry, including United Spirits, which has a significant presence in the state with its McDowell's No. 1 and Royal Challenge brands. United Breweries, the largest beer company, is also expected to benefit from the policy change. Tilaknagar Industries, the largest player in the "Prestige and Above" segment in Karnataka, and Allied Blenders, a major brandy player in the state, also saw their shares trading higher.

Key Figures:

• United Spirits shares: 5.5% higher at Rs 1,398.9 apiece
• United Breweries shares: nearly 4% higher at Rs 1,712 apiece
• Tilaknagar Industries shares: 6.8% higher
• Allied Blenders shares: 4% higher
• Som Distilleries shares: 4.5% higher
• Radico Khaitan shares: 6% higher