United Spirits, UBL, Radico Khaitan Share Prices Jump As Budget 2025 Skips Tax Hike
Ahead of the Budget, potential changes were anticipated in taxation policies, affecting the alcohol sector.

Shares of United Spirits, Radico Khaitan, United Breweries, Som Distilleries, and Allied Blenders and Distilleries jumped on Saturday, after the Centre made no mentions of the anticipated hike in the tax for the alcohol industry in the Union Budget 2025–26.
Finance Minister Nirmala Sitharaman presented the budget on Feb. 1.
In fact, most consumer stocks rallied after the minister announced that there will be no income tax payable up to the income of Rs 12 lakh. This is a massive boost for consumption, which has had a dry run for the past few quarters.
Ahead of the Budget, potential changes were anticipated in taxation policies, affecting the alcohol sector, particularly around a levy imposed on products considered harmful to public health.
The concept of sin tax was introduced in India under the Goods and Services Tax framework in 2017 and applies to products such as tobacco, sugary drinks, and pan masala. However, alcohol is taxed separately, as it does not fall under GST, with each state imposing its own taxes on alcoholic beverages.
While tax hikes are generally viewed unfavourably, there were expectations that the government might increase the sin tax on certain products to promote public health, by making them more expensive and reducing consumption.
Stock Movements

United Spirits: Shares climbed as much as 6.09% to Rs 1,506.05.
Radico Khaitan: Shares jumped as much as 10.10% to Rs 2,398.50.
United Breweries: Shares rose as much as 7.21% to Rs 2,253.
Som Distilleries: Shares climbed as much as 4.13% to Rs 107.65.
Allied Blenders and Distilleries: Shares were up as much as 8% to Rs 418.
Tilaknagar Industries: Shares jumped as much as 7.21% to Rs 394.