The company notes that while the excise duty changes in Maharashtra will impact the sales, the Indian market will be in a strong growth momentum in fiscal year 2026
While emphasising that the underlying consumer demand in India is still very strong, Alexandre Ricard, the global Chief Executive Officer (CEO) of Pernod Ricard, has stated that the recent excise duty hike in Maharashtra will impact sales in the current financial year.
“The excise policy changes in Maharashtra state, where they increased by 50 per cent, will negatively impact our sales throughout the year, which will still be very nicely growing, but that impact is skewed most significantly towards Q1 (first quarter),” Ricard highlighted during the earnings call.
As the company sold its whisky brand Imperial Blue to Tilaknagar Industries, Ricard said that the brand no longer had a strategic fit in the company’s portfolio of brands from a profitability and growth point of view. “That disposal is expected to be immediately accretive to both our margins and growth in India.
Ricard added that the premiumisation trends are still very dynamic. India, which is the second largest market for Pernod Ricard, accounted for 13 per cent of the company’s global sales in the previous financial year and registered a 6 per cent growth as well.
The company said that while the excise duty changes in Maharashtra, one of its top states in the country, will impact the sales, India would be in strong growth momentum in fiscal year 2026. The company highlighted that it is in a good place in terms of track record, growth and market share.
