New Delhi, Nov. 4 -- India's liquor market is seeing a growing divide. Consumers with deeper pockets are spending more on premium spirits and beer, while those feeling the pinch of inflation are cutting back on cheaper drinks. The split was clear in the September quarter earnings of top liquor makers, with premium brands driving growth at Radico Khaitan and United Breweries, and United Spirits seeing a sharp fall in sales of its lower-priced spirits while the prestige segment was buoyant.

The numbers point to a market where premiumization is gaining ground, while the mass-market consumer remains under pressure amid rising living costs and economic uncertainty, which are making price-sensitive consumers cut back on discretionary spending....