India’s liquor industry
There are many sectors in the Indian stock market, which are often not in the headlines, but silently earn huge profits to the investors. In the last few years, one such sector has been the alcohol business. The pace that the liquor business in India has gained in recent years is truly worth seeing. There are many big reasons behind this. On one hand, people’s income is increasing, there has been openness in social thinking and the demand for premium brands has increased rapidly. On the other hand, the ethanol and biofuel policies of the government have opened new doors of growth for this industry.
This growth is not limited to drinking alcohol only, but from beer to spirits and industrial alcohol, opportunities are increasing in every segment. The result of this strong growth is that some companies in the brewery and distillery sector have surprised the market by giving excellent returns of up to 654 percent to investors in the last three years.
Why is the enthusiasm of liquor companies ‘high’?
India’s alcoholic beverage market is a huge market. If we look at the figures of the year 2021, it was about 52 billion dollars (about Rs 4,61,708 crore). It is estimated that this pace will continue and by 2030 this market may touch the figure of $64 billion. But a new and powerful twist has come in this story due to the ethanol blending policy of the government.
The government has set a target of mixing 20% ethanol (E20) in petrol by 2025-26. To fulfill this target, ethanol is needed on a large scale, the work of which is being produced by these distillery companies. The increasing emphasis on biofuel is driving the demand for industrial alcohol to skyrocket. This simply means that these companies now have an opportunity to earn on a double front. First, from drinking alcohol (Beverage) and second, from industrial alcohol (Ethanol). This is why investors are now so excited about these stocks.
big bang of small packet
When it comes to multibagger returns, the first name in this list is ‘Tahmar Enterprises’. The company manufactures grain-based specialty products, which include Extra Neutral Alcohol (ENA), IMFL (Indian Made Foreign Liquor) and pharma grade solvents.
This small company with a market cap of just Rs 188 crore has given a surprising return of 654 percent in the last 3 years. That means almost 7 times the investment money. However, it is also important for investors to know that the company does not look financially strong at the moment. In the first quarter of the financial year 2026 (Q1 FY26), the company suffered a loss of Rs 1.42 crore, while its sales stood at Rs 2.08 crore.
The second name in this series is ‘Winsome Breweries’. This company has about 20 percent share in the beer market of Rajasthan. This company with a market cap of around Rs 80 crore has given a return of 226% in 3 years. The first quarter results of this company are quite interesting. Its sales declined by 30% to Rs 33 lakh in Q1 FY26, but the company’s profit increased from Rs 4 lakh to Rs 25 lakh, i.e. a jump of 525%.
From ‘Magic Moments’ to ‘8 PM’
Apart from small stocks, big and established players in the industry have also not disappointed investors. ‘Radico Khaitan’ is one of the oldest and reputed spirits companies of India. Its popular brands like ‘8 PM Whiskey’, ‘Magic Moments Vodka’ and ‘Rampur Single Malt’ are sold not only in India but in more than 100 countries.
This company with a huge market cap of Rs 41,904 crore has given a return of 198% in the last 3 years. The company’s recent financial results (Q2 FY26) have also been quite strong. The company’s sales increased by 34% to Rs 1,494 crore, while net profit grew by a strong 69% to Rs 139 crore.
The fourth name in this list is that of ‘Associated Alcohols and Breweries Limited’ (AABL). This company is active in all three segments – Spirits, ENA and Ethanol. It has 20-25 percent share in the liquor market of Madhya Pradesh. This company with a market cap of Rs 2,309 crore has given a return of 162 percent in 3 years. The company’s profit also increased by 33 percent in Q1 FY26 from Rs 18 crore to Rs 24 crore, which is a sign of stable growth.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.