Telangana hikes beer prices by 15%, details inside

Telangana has announced a 15% increase in beer prices, marking the first price hike since FY20. The revised prices come into effect from today.

According to Dolat Capital, the 15% hike is lower than the 33% industry-wide hike. The price per case is expected to increase by Rs 45-50. If there are no further changes in excise duties, the MRP is likely to rise by 3-4%.

Despite the price increase, analysts believe there will be no significant impact on industry volumes. The move is expected to benefit United Breweries Limited (UBL), with its annual EBITDA rising by Rs 170-190 crore due to the hike. For FY25, EBITDA is projected to grow by 18-20%, while EBITDA margins could improve by 200-220 basis points.