Metro India News | Hyderabad 

In a windfall for the state's coffers, Telangana's Excise Department has raked in an astonishing Rs 6,348 crore in revenue within a single month October 2025 marking an unprecedented spike driven by booming liquor sales and a flood of applications and license fees for liquor shops. This haul, surpassing all previous benchmarks, offers much-needed fiscal relief amid ongoing economic pressures, with officials hailing it as a ‘revenue rocket’ that has ‘touched the sky.’

The bonanza breaks down into two powerhouse streams. Liquor sales alone generated Rs 3,168 crore, a robust 6% jump from the Rs 2,987 crore collected in October 2024. The uptick is attributed to a flurry of festivals and jataras across the state, including Dasara, and regional celebrations, which traditionally ignite demand for spirits. With 2,620 retail outlets dotting Telangana, consumers flocked to shops amid the revelry, pushing volumes to record highs and underscoring alcohol's enduring role in the state's social fabric.

Complementing this was a staggering Rs 3,180 crore from new license applications and fees, the real game-changer of the month. Under the Telangana Excise Act of 1968, the government invited bids for fresh two-year licenses (December 2025 to November 2027) for these 2,620 A4 shops.

To maximize yields, authorities hiked the application fee from Rs 2 lakh to 3 lakh a strategic move to rake in more revenue than the previous time. An impressive 95,628 applicants vied for spots, yielding Rs 2,868.8 crore in fees alone. Successful bidders then advanced one-sixth of their license costs, adding another Rs 313 crore to the tally.

Telangana has long mastered the art of turning liquor sales into fiscal fireworks, with excise revenues repeatedly lighting up the state's coffers. Since the state's formation in 2014, excise duties have been a cornerstone of revenue, often accounting for 10-15% of total tax inflows.

The 2025-26 budget penciled in Rs 1.45 lakh crore from taxes, with liquor expected to punch above its weight. Echoing past successes, two years ago, 1.32 lakh applications netted Rs 2,645 crore without a single bottle sold thanks to a policy that fixed trader margins at 27% for regular brands and 20% for premiums. The Congress-led government's latest tweaks, including corporate eligibility for bids and stricter enforcement against illicit trade, aim to sustain this momentum while curbing overindulgence.

The surge has stunned even seasoned excise officials, who note it's double the norm. For suppliers and contractors nursing pending bills, it's a beacon of hope: ‘This influx will clear backlogs and stabilize the ecosystem,’ said an industry insider. Broader implications ripple through Telangana's economy, where liquor revenue has long bridged gaps in welfare spending, infrastructure, and debt servicing—especially post-pandemic.