Liquor stocks rally on Karnataka?s alcohol policy overhaul

Radico Khaitan rose 3.23%. United Breweries gained 2.11%. Tilaknagar Industries added 1.87%. Allied Blenders and Distillers climbed 1.57%.

According to the media reports, the proposal seeks amendments to the Karnataka Excise (Excise Duties and Fees) Rules, 1968. It also plans to reduce the number of pricing slabs from 16.

Under the new structure, products with higher alcohol content will attract higher taxes, while lower strength beverages are likely to face relatively lower levies.

The proposed framework is seen as positive for spirits and beer companies. Lower effective taxation could ease prices for spirits, supporting volume growth for listed players.

The revised regime is expected to be implemented in phases after final approval.

In addition, the proposed India-UK free trade agreement is expected to come into effect from Q2, which could support margins for spirits companies.