According to a report by Crisil Ratings, Indian alcoholic beverage (alcobev) manufacturers are facing a significant decline in their earnings before interest, taxes, depreciation, and amortisation (Ebitda) margins, projected to drop by 150-200 basis points this fiscal year. This decline is attributed to rising packaging costs, particularly due to a shortage of glass bottles caused by ongoing supply chain disruptions linked to the West Asia conflict. The report, which analyzed 31 alcobev makers representing 30% of the organized alcobev industry revenue of ₹3.8 lakh crore (approximately $460 billion USD), indicates that revenue growth is likely to slow to 5-7%, compared to the previous 11% CAGR over the last three fiscals. The cost of glass bottles is expected to rise by 20%, reaching ₹280-300 per case, with manufacturers struggling to pass these costs onto consumers due to the industry's regulatory constraints. The report also highlights that while cash flows may decrease, a reduction in inventory could provide temporary relief to working capital cycles. Despite planned capital expenditures, the balance sheets of alcobev companies are expected to remain healthy, with an interest coverage ratio projected at 6.8 times.