India-UK FTA Lifts Liquor Stocks; Radico, United Spirits Lead Gains

Shares of alcoholic beverage companies traded higher on Wednesday after industry bodies welcomed the implementation of the India-UK Free Trade Agreement (FTA), which is expected to lower tariffs on Scotch whisky imports and accelerate premiumisation trends in the domestic spirits market.

Among the major gainers, Radico Khaitan rose nearly 4% to ₹3,715, while United Spirits gained 3.88% to ₹1,358. Globus Spirits advanced 3.63% to ₹901, Tilaknagar Industries climbed 2.74% to ₹440, and Associated Alcohols & Breweries added 2.1% to ₹843.95. Piccadily Agro Industries also traded 1.5% higher at ₹588.

The rally came after industry participants highlighted the potential benefits of the India-UK trade pact, which is expected to reduce import duties on Scotch whisky and improve access to premium international brands in India.

JPMorgan's Positive View

Shares of United Spirits received additional support after JPMorgan reiterated its "Overweight" rating on the stock and maintained a target price of ₹1,510.

The brokerage said the company's growth outlook for FY27 remains constructive, supported by its double-digit prestige and above (P&A) volume growth aspirations, ongoing product renovation initiatives and innovation across categories.

JPMorgan highlighted initiatives such as the refresh of the McDowell's brand, expansion in the vodka segment and category-building efforts in tequila as key growth drivers. It also noted that the India-UK FTA could provide incremental upside for the company.

According to the brokerage, the second half of FY27 is expected to be stronger as the impact of regulatory changes in Maharashtra gets absorbed. It also expects gradual margin improvement despite near-term pressure from higher packaging and logistics costs.

The brokerage further said advertising and promotion spending is likely to remain elevated as the company focuses on strengthening brand equity and market positioning.

Industry participants believe the trade agreement could accelerate the ongoing premiumisation trend in India's alcoholic beverages market.

Lower tariffs on imported Scotch whisky are expected to improve affordability and expand consumer access to premium products, while also encouraging multinational and domestic players to broaden their premium offerings.

JPMorgan noted that United Spirits has sharpened its execution strategy around three distinct consumer cohorts, enabling a more targeted approach to product development and marketing amid increasing competition from domestic liquor companies.

India-UK FTA Expected To Support Sector Growth

The positive sentiment across liquor stocks followed supportive comments from industry bodies after the implementation of the India-UK trade agreement.

The International Spirits and Wines Association of India (ISWAI) said the pact would strengthen bilateral trade, create new growth opportunities for the alcoholic beverages industry and support the long-term development of the sector.

Market participants believe companies with strong premium portfolios could be among the biggest beneficiaries if lower tariffs lead to higher demand for premium and imported spirits.

The development is also expected to enhance product variety in the market and strengthen India's position as an important growth market for global spirits companies.