Bengaluru: Karnataka recorded a sharp rise in beer sales during the first half of financial year 2026-27, while Indian-Made Liquor (IML) volumes remained largely stagnant following the introduction of the state’s revised Alcohol-in-Beverage (AIB) excise policy in May 2026. Beer sales increased 41.32% year-on-year to 275.96 lakh cases between April and September, while IML sales grew just 1.14% to 346.83 lakh cases.
According to Karnataka Excise Department data, beer sales increased from 195.27 lakh cases in April-September 2025 to 275.96 lakh cases during the corresponding period in 2026, adding approximately 80.69 lakh cases. In comparison, IML sales rose from 342.93 lakh cases to 346.83 lakh cases, reflecting an increase of just 3.90 lakh cases.
Despite the contrasting volume trends, the state’s excise revenue continued to grow. Revenue from beer increased from ₹2,836.64 crore to ₹3,377.88 crore, registering growth of approximately 19.08%. IML revenue rose from ₹15,376.22 crore to ₹17,424.57 crore, an increase of around 13.32%. Total excise collections reached ₹22,191.63 crore during the first six months, compared with ₹19,570.23 crore a year earlier, representing growth of 13.39%.
The AIB policy, implemented on May 11, 2026, changed Karnataka’s excise framework and reduced the maximum retail prices of select lager beers containing 5% alcohol by volume, along with certain premium IML brands. Beer sales grew 34.92% during April-June before accelerating to 49.69% in July-September, indicating stronger demand in the second quarter.
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Karnataka has set an excise revenue target of ₹45,000 crore for FY27. With collections crossing ₹22,191 crore in the first half, the state has achieved nearly half its annual target. The coming months will indicate whether rising beer sales can sustain momentum while IML remains the principal contributor to excise revenue.
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