Liquor Stocks Rally: Tilaknagar and Radico Share Price Rise as Raw Material Costs Drop

Tilaknagar Industries share price and Radico Khaitan share price surged on June 12, 2025, after news of record rice and wheat stocks in government warehouses. Tilaknagar jumped 11% to ₹379.10, while Radico gained 4% to ₹2,652, recovering from previous session losses.

Record Grain Inventory Spurs Positive Outlook

India’s rice stock rose 18% year-on-year to a record 59.5 million metric tonnes as of June 1, 2025. Wheat reserves also reached a four-year high due to increased procurement. This is good news for liquor manufacturers since rice and wheat are key ingredients for alcohol production. Lower grain costs can reduce production expenses and improve margins.

The increased rice supply will lower the cost of broken rice used in alcohol production, boosting profitability in the coming quarters. The drop in raw material prices could ease the cost pressures liquor firms have been facing due to inflation in recent years.

Government’s Ethanol Push Could Help Liquor Industry

The Indian government’s plan to reach 20% ethanol blending by 2025 will likely drive higher demand for grain-based molasses, a key input for alcohol and ethanol production.

About Tilaknagar Industries

Tilaknagar Industries is a leading Indian alcohol company, known for Mansion House Brandy and other products like whisky, rum, and gin. It recently entered the premium market with Monarch Legacy Edition.

About Radico Khaitan

Radico Khaitan is one of India’s oldest and largest IMFL producers. Known for launching 8 PM Whisky in 1998, it is also a major supplier to the Canteen Stores Department (CSD), which serves defence personnel.

Also Read: Adani Group Q4 FY25 Earnings Results: Reported ₹89,806 Crore EBITDA, Up 8.2%! 

Conclusion

With raw material prices expected to fall due to record grain inventory, liquor companies like Tilaknagar and Radico are poised for improved margins and potential growth. Investors responded positively, driving strong gains in their stock prices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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