Pernod Ricard is reportedly exploring a separate stock market listing for its Indian subsidiary. Preliminary talks with financial advisors are currently underway as the French drinks giant seeks to unlock value in its second-largest global market. The move comes at a critical time for the brand in India. Recent financial filings for the 2024-25 fiscal year show Pernod Ricard India maintaining its position as the country's leading alcoholic beverage firm by value. The company reported consolidated sales of 27,445.80 crore rupees, narrowly edging out its primary competitor, Diageo India. Profitability remains strong despite complex local regulations. The Indian unit recorded a net profit of 1,734.59 crore rupees in the latest fiscal cycle, marking an 8% increase from the previous year. This growth is largely driven by a aggressive "premiumization" strategy, as consumers shift toward high-end spirits like Chivas Regal, Glenlivet, and Jameson. The potential IPO follows a year of significant portfolio shifts. Pernod Ricard recently hived off its popular Imperial Blue brand to Tilaknagar Industries for approximately 3,442 crore rupees. This divestment allows the firm to focus on higher-margin, super-premium categories where demand is surging. However, the path to a public listing faces notable regulatory hurdles. The company is currently navigating an investigation by the Competition Commission of India into alleged collusion with retailers in southern states. Simultaneously, it is contesting a federal tax demand of roughly $250 million related to liquor import valuations. Market dynamics in India remain highly attractive for investors. The domestic alcohol sector is projected to reach a valuation of over $208 billion by late 2026. Experts anticipate a steady growth rate of 7.2% through the next decade, fueled by a young demographic and rising disposable incomes in urban centers. A local listing would offer Pernod Ricard a dedicated capital structure to navigate India's state-specific tax laws and licensing frameworks. With the Indian spirits market outperforming global averages, a successful IPO could set a new benchmark for multinational beverage players in the region.