Liquor sales in Andhra Pradesh recorded a 6.11% increase in value during the financial year 2025–26. However, despite higher sales, the overall growth in government revenue remained limited.
The total value of liquor sales rose to ₹31,237 crore, up from ₹29,440 crore in the previous year. Both Indian Made Liquor (IML) and beer saw strong growth in volumes.
According to official data from April 1 to March 31, IML sales increased by 14.59%, rising from 362 lakh cases to 414 lakh cases. Beer sales witnessed a sharp jump of 70.29%, going up from 136 lakh cases to 232 lakh cases.
Even with this surge in sales, total revenue grew by only 0.68%, reaching ₹29,042 crore compared to ₹28,846 crore last year. Revenue specifically from liquor sales increased by 4.01%, from ₹24,734 crore to ₹25,727 crore.
One of the key reasons for the slow revenue growth was a sharp decline in the ‘LF and Others’ category, which fell by 19.37%, dropping from ₹4,112 crore to ₹3,316 crore.
Excise officials explained that although more liquor was sold, a larger share of sales came from lower-priced products. A significant portion of purchases were ₹99-priced 180 ml packs, leading to an estimated revenue loss of ₹442 crore. Additionally, price cuts in popular brands resulted in a further estimated loss of ₹972 crore.
The average price of a 180 ml bottle also dropped from ₹180 to ₹160 compared to the previous year. Another major factor affecting revenue was the removal of the non-refundable application fee, which had earlier contributed around ₹1,900 crore.
Overall, while liquor consumption increased significantly in Andhra Pradesh, lower pricing and reduced contributions from other sources kept revenue growth largely flat.
