Pernod Ricard rules out India IPO; India net sales rise 4%

New Delhi: French liquor major Pernod Ricard has ruled out an initial public offering of its India business as part of its deleveraging strategy, even as it reported a 4% rise in net sales in the country.

Chairman and Chief Executive Officer Alexandre Ricard said growth in India accelerated to 8% after excluding Imperial Blue, a brand that has now been disposed of and closed. He said the company expects the momentum to continue in the second half of FY26.

The group follows a July-to-June fiscal year. Ricard said the first quarter was “severely impacted” by a sharp tax increase in Maharashtra, but India still managed to deliver growth.

“We expect to see this momentum continue over the second half (H2),” Ricard said during the post-earnings call last week.

Ricard added that Pernod Ricard’s international spirits portfolio is experiencing “strong double-digit growth” in India, citing continued premiumisation in the market.

He said India’s growth is comfortably above the 6% range and supports the group’s confidence of delivering average growth of 3% to 6% over the next three years.

“With India above that 6% range, which it already is, yes, we can deliver, on average, over the next three years, a growth comprised between plus 3 and plus 6%,” Ricard said.

Chief Financial Officer Helene de Tissot said the company plans to deleverage and bring its Net Debt to EBITDA ratio below 3x by fiscal year 2029.

When asked about a possible India listing, Tissot said it is not part of the plan.

“What I can tell you is that the intention that I shared earlier today, which is to leverage and to bring with it a Net Debt EBITDA ratio below 3 by 29, does not include an assumption of a listing in India,” she said.

India is Pernod Ricard’s largest market globally by volume, driven by brands such as Royal Stag and Blenders Pride, along with premium imports including Chivas Regal and Glenlivet. By value, India is the group’s second-largest market after the US, having surpassed China, and contributes around 12-13 per cent to global revenues.

“We are expecting a strong H2 for India, which is obviously a very exciting market for us. Number 2 market, and there would be some acceleration in H2, because the momentum is great, and we have, as well, the stronger top-line ambition,” Tissot said.

The company reported growth in strategic international brands, including Jameson, Ballantine’s and Absolut, alongside mid-single-digit growth in Royal Stag and Blenders Pride.

In the first half of FY26, Pernod Ricard reported sales of 1.61 billion euros, down 7.5% on an organic basis and 18.7 overall. Pernod Ricard India is the leading alcoBev maker in the country by value.