Karnataka's excise revenue demonstrated robust growth in the second quarter of 2026-27, rising 12.54% year-on-year to ₹11,595.88 crore during July-September 2026. According to data from the state excise department, this represents an increase of ₹1,291.94 crore over the ₹10,303.94 crore collected in the same period a year earlier. The growth was primarily driven by stronger collections from Indian Made Liquor (IML) and a significant surge in beer sales across the quarter, marking a major boost to Karnataka's state coffers.
Beer emerged as one of the fastest-growing segments during the quarter, with sales volumes climbing to 126.68 lakh case boxes in July-September 2026 from 84.63 lakh case boxes in the corresponding period last year. As reported by the excise department, this increase of 42.05 lakh case boxes represents a 49.69% year-on-year jump, significantly outpacing growth in other liquor categories. The surge in beer consumption demonstrates strong demand for alcoholic beverages in the state, with beer-related revenue also recording substantial growth of 18.52% to ₹1,463.07 crore from ₹1,234.50 crore in the corresponding quarter of 2025.
IML sales registered more modest but steady growth during the quarter. Sales rose to 171.69 lakh case boxes during the second quarter from 169.12 lakh case boxes in the year-ago period, marking an increase of 1.52%. According to excise department data, IML revenue increased 13.36% year-on-year to ₹9,033.21 crore in the second quarter of 2026, compared with ₹7,968.69 crore a year earlier, representing an increase of ₹1,064.52 crore. While IML continues to account for the bulk of Karnataka's excise collections, beer consumption recorded substantially faster volume growth during the quarter.
Collections from other excise-related sources, including licence fees and fines, remained broadly stable at ₹1,099.60 crore, marginally lower than ₹1,100.75 crore recorded in the same period last year. The data shows that while IML continues to account for the bulk of Karnataka's excise collections, beer consumption recorded substantially faster volume growth during the quarter. Overall, the state's excise revenue during July-September 2026 stood at ₹11,595.88 crore, putting collections significantly ahead of the year-ago period and providing a major boost to Karnataka's state finances.
