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leading alcoholic beverage industry bodies have urged the Telangana government to clear pending dues

ICICIdirect Research 15 Jun 2026 DISCLAIMER

News: As per media reports, leading alcoholic beverage industry bodies have urged the Telangana government to clear pending dues of ~₹3,700 crore before implementing a new early-payment discount mechanism for liquor supplies. Industry associations highlighted that payments for supplies made between December 2025 and April 2026 remain outstanding, while dues have been cleared only up to the first week of December 2025. The concern follows Telangana’s decision to release payments for recent supplies within 15 days, subject to a 2–2.75% cash discount. Industry players contend that the discount should be optional and have raised concerns that prioritizing newer invoices could further delay settlement of older dues. The issue underscores ongoing working capital and cash flow challenges for liquor manufacturers operating in the state.

View: Telangana is one the key liqour consuming states in India. The outstanding Telangana dues is a long standing issue. Companies continued to received delayed payments for the supplied made to the state. As per last update, Allied blenders has started receiving payment for older dues in a gradual manner. The company in recent call indicated that large part or entire dues should get cleared by end of the current fiscal. . ABDL also has higher share of revenues of ~30% from Telangana. Overall, pending dues from the state continue to block cash flows for the companies. Any significant relief from the dues unlocks free cash flows for the companies and also will reduce stress on Balance Sheet.

Impact: Neutral

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