Pernod Ricard prepares India IPO as premium spirits demand rises

Pernod Ricard has begun laying the groundwork for a potential initial public offering of its Indian business, a move that would spotlight how central India has become to global consumer groups seeking growth, valuation upside and a more local capital-market identity.

Pernod Ricard India Pvt. Ltd. has started initial preparation for the deal and is working with Goldman Sachs Group Inc. and Cyril Amarchand Mangaldas, with advisers expected to be chosen soon. The possible listing would be closely watched because India is now Pernod Ricard’s largest market by volume, its second-largest by value, and contributes about 13% of group revenues.

The timing also reflects a broader reshaping of the portfolio toward higher-end labels. In July 2025, Pernod Ricard agreed to sell its Imperial Blue business division to Tilaknagar Industries Ltd. for €412.6 million, about $485 million. The company said the sale would help it sharpen its focus on premiumisation and innovation, a signal that the India business is being recast around more profitable spirits rather than mass-market volume.

That strategy appears to be working. Pernod Ricard’s FY25 net sales totaled €10.959 billion, and its India business posted 11% revenue growth in the March quarter of FY26. The group has also said India growth was accelerating in its first-half FY26 results, while sales in the United States and China faced pressure. In early January, industry reporting put Pernod Ricard India’s FY25 consolidated sales at Rs 27,445.80 crore and total income at Rs 27,663.56 crore, underscoring the scale of the local operation.

The proposed IPO would matter beyond Pernod Ricard itself. For global beverage groups, India has become a place not just to sell, but to raise capital, sharpen strategy and potentially command a valuation that better reflects local growth. That is especially true in a market where premium whisky and imported brands continue to benefit from rising incomes and changing consumer tastes.

Still, the regulatory backdrop is complicated. In May 2025, New Delhi rejected Pernod Ricard’s liquor licence request for a third time amid an investigation. Indian media also reported that Diageo and Pernod Ricard’s lobbying group, the Indian Spirits and Wines Association of India, sued Maharashtra state over a sharp tax hike and exclusion from a lower-tax category for some local firms. Those disputes underline the policy risk attached to any listing and the challenge of valuing a liquor business that depends on state-by-state rules.

If Pernod Ricard moves ahead, the listing would test how investors price India’s premium spirits market at a time when global brands increasingly see the country as a standalone growth engine, not just a regional division tucked inside a multinational balance sheet.