Pernod Ricard’s Strategic Pivot in India Draws Cautious Market Response

Pernod Ricard's strategic overhaul in India, its second-largest global market, is drawing significant investor attention. The spirits conglomerate is executing a decisive shift toward premium offerings, a move underscored by the divestment of a major mass-market brand. However, this bold strategy has been met with a measured response from major financial institutions in their latest assessments.

The company's operational approach in India has undergone a fundamental transformation. Central to this new direction is the launch of "Seagram's Xclamat!on," a unified portfolio spanning five premium spirits categories. This initiative is directly linked to a strategic reallocation of capital.

To fund and focus on this premium push, Pernod Ricard has finalized the sale of its mass-market whisky brand, Imperial Blue, to Tilaknagar Industries. The transaction is valued at approximately €412.6 million. According to CEO Jean Touboul, every rupee of profit generated by the new Xclamat!on brand in its first 12 to 18 months will be reinvested into marketing. Company leadership is targeting first-year sales of one million cases.

Should investors sell immediately? Or is it worth buying Pernod Ricard.?

Financial Performance and Analyst Sentiment

Recent financial data presents a mixed picture. Pernod Ricard India reported revenue of ₹27,446 crore for fiscal year 2025, representing a modest year-on-year growth of 2.5%. The new premiumization strategy aims to accelerate this growth rate to a low double-digit pace.

Institutional sentiment, however, remains cautious. On December 4, 2025, two major banks issued updated evaluations:
* UBS maintained a "Neutral" rating on Pernod Ricard but lowered its price target.
* Deutsche Bank reinstated coverage of the company with a "Hold" recommendation.

This restructuring marks a clear departure from volume-driven mass-market tactics toward higher-margin premium segments. The sale of Imperial Blue, which sold 22.4 million cases in FY2025, frees up both capital and production capacity for more value-added products. The market now awaits concrete evidence that the new "Xclamat!on" line can effectively replace the lost sales volume. The company's commitment to a long-term strategic shift is further emphasized by plans to invest up to €200 million in a new distillery in Nagpur within the next decade.