Karnataka’s Beer Craze Grows: Nearly 35% Jump in Sales Pushes Excise Revenue Past ₹10,599 Crore
Bengaluru: Beer consumption in Karnataka witnessed a significant surge during the first quarter of the 2026-27 financial year, with sales increasing by 34.92% compared to the corresponding period last year. The sharp rise in beer sales helped the State’s Excise Department collect ₹10,599.29 crore in excise revenue between April and June 2026, marking a 14.39% increase over the same period in 2025.
According to a press note issued by the Karnataka Excise Department, total excise revenue increased from ₹9,266.29 crore during April–June 2025 to ₹10,599.29 crore in the first quarter of 2026-27, registering an additional ₹1,333 crore in collections.
Beer Sales Register Highest Growth
Beer emerged as the fastest-growing liquor segment during the quarter.
Sales rose from 110.64 lakh cases in April–June 2025 to 149.28 lakh cases during the same period in 2026.
This represents an increase of 38.64 lakh cases, translating into a remarkable 34.92% year-on-year growth, making beer the standout contributor to overall liquor sales growth in the State.
Beer Revenue Also Climbs
The increase in beer consumption was reflected in excise collections as well.
Revenue from beer increased from ₹1,602.14 crore in the first quarter of 2025 to ₹1,914.81 crore during April–June 2026.
The State earned an additional ₹312.67 crore from beer alone, registering a 19.52% growth.
IMFL Continues to Dominate Revenue
While beer recorded the fastest growth, Indian Made Liquor (IMFL) continued to contribute the largest share of excise revenue.
IMFL sales increased marginally from 173.81 lakh cases to 175.14 lakh cases, an increase of 1.33 lakh cases, representing 0.77% growth.
However, excise revenue from IMFL rose significantly:
- 2025: ₹7,407.53 crore
- 2026: ₹8,394.32 crore
This represents an increase of ₹986.79 crore, reflecting 13.32% growth.
Other Excise Collections
Revenue generated from licence fees, fines and other miscellaneous sources also recorded growth.
Collections increased from ₹256.62 crore in 2025 to ₹290.16 crore in 2026, an increase of ₹33.54 crore, registering 13.07% growth.
Overall Q1 Performance
Liquor Sales (April–June)
- IMFL: 175.14 lakh cases (up 0.77%)
- Beer: 149.28 lakh cases (up 34.92%)
Excise Revenue
- Total Revenue (2025): ₹9,266.29 crore
- Total Revenue (2026): ₹10,599.29 crore
- Increase: ₹1,333 crore
- Growth: 14.39%
The Excise Department said the comparative analysis of the first quarter highlights steady growth in liquor sales and excise collections compared with the corresponding period of 2025, with beer emerging as the biggest growth driver during the quarter.
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