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Informist, Tuesday, Jan. 20, 2026

 

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--United Spirits Oct-Dec net profit INR 5.29 bln 
--Analysts saw United Spirits Oct-Dec net profit at INR 5.10 bln 
--United Spirits Oct-Dec revenue INR 79.28 bln 
--United Spirits Oct-Dec net profit INR 5.29 bln vs INR 4.73 bln year ago 
--United Spirits Oct-Dec revenue INR 79.28 bln vs INR 77.31 bln year ago 
--United Spirits to pay INR 6 per share interim dividend 
--United Spirits interim dividend record date is Jan 27 
--United Spirits Apr-Dec net profit INR 12.59 bln vs INR 11.07 bln year ago 
--United Spirits Apr-Dec revenue INR 209.43 bln vs INR 202.31 bln year ago 
--United Spirits Oct-Dec EBITDA INR 6.18 bln vs INR 5.88 bln year ago 
--United Spirits Oct-Dec EBITDA margin 16.8% vs 17.1% year ago 
--United Spirits Oct-Dec gross profit margin 46.9% vs 44.7% year ago 
--United Spirits Oct-Dec sales volume 17.57 mln cases vs 18.16 mln year ago 
--United Spirits Oct-Dec sales volume down 3.2% on year 
--United Spirits Q3 prestige & above pdt sales volume 14.62 mln cases 
--United Spirits Q3 prestige & above pdt sales volume down 2% on year 
--United Spirits Q3 prestige segment net sales INR 33.16 bln, up 8% on year 
--United Spirits Q3 popular segment net sales INR 3.18 bln, down 4.6% on yr 
--United Spirits:Popular segment sales dn YoY on impact of Maharashtra policy 
--United Spirits Oct-Dec advt expense INR 5.16 bln vs INR 3.79 bln year ago 
--United Spirits: Q3 EBITDA margin down on year due to higher advt expense 
 

 

By Pallavi Singhal

 

NEW DELHI – A sharp rise in advertising and promotion expenses, the highest in nine quarters, weighed on United Spirits Ltd.'s December quarter margins, even as premiumisation-led mix gains drove double-digit growth in its net profit.

 

United Spirits reported a net profit of INR 5.29 billion for the reporting quarter, up nearly 12% on year, and marginally above analysts' estimates of INR 5.10 billion. Revenue from operations rose 2.5% on year to INR 79.28 billion. It had posted a revenue of INR 77.31 billion in the year-ago quarter.  

 

The rise in profit came despite pressure at the operating margin level. The company's earnings before interest, tax, depreciation, and amortisation rose over 5% on year to INR 6.18 billion, but the EBITDA margin declined to 16.8% from 17.1% in the year-ago period. The margin contraction was driven largely by a sharp increase in advertising and promotion expenses, which jumped over 36% on year to INR 5.16 billion from 3.79 billion in the corresponding quarter last year.
 

Meanwhile, its gross profit margin expanded to 46.9% from 44.7% a year ago, implying an expansion of 219 basis points, aided by premiumisation-led mix gains, pricing flow-through, and productivity initiatives, the company said in its press release. Its gross profit rose about 13% on year, helping partially absorb the sharp rise in discretionary brand spend.

 

Volumes, however, declined during the quarter. Sales volume fell 3.2% on year to 17.57 million cases, compared with 18.16 million cases in the year-ago period. Within this, prestige and above segment volumes declined about 2% on year to 14.62 million cases, while the popular segment recorded a steeper decline of 9% due to policy-led disruptions in the key market of Maharashtra.

 

Despite the decline in volumes, the company's value growth remained supported by premiumisation. Net sales from the prestige and above segment rose over 8% on year to INR 33.16 billion in Oct-Dec, lifting its share of net sales value to 90%, up 80 basis points on year. Net sales value, which excludes excise duty, provides a clearer reflection of the company's top-line performance. In contrast, net sales from the popular segment fell 4.6% on year to INR 3.18 billion, with the company attributing the decline largely to excise duty-related changes in Maharashtra. The state is a profitability driver for liquor companies as it has a higher share of margin-accretive, premium products than other markets. Brokerages had expected import duty changes and the continued push toward Maharashtra-made liquor to have weighed on volumes, particularly in the popular and lower-to-mid prestige segments. 

 

"We have delivered a resilient quarter overall while navigating policy headwinds in one of our most salient markets. Strong momentum in Rest of India and at the top-end of our portfolio bodes well," Chief Executive Officer and Managing Director Praveen Someshwar said, according to the company release.

 

For Apr–Dec, United Spirits reported a net profit of INR 12.59 billion, up nearly 14% on year, while revenue from operations rose about 3.5% on year to INR 209.43 billion.

 

In Apr-Dec, the sales volume of prestige and above products--the premium and luxury segment--rose 4.5% on year to 41.11 million cases, and that of lower-priced popular products rose 1.5% to 8.05 million cases. The prestige and above segment accounted for 89.4% of net sales value during the first nine months of 2025-26 (Apr-Mar), up 70 bps over the same period in the previous year, and its net sales increased nearly 9.8% during this period. The popular segment accounted for 9.0% of net sales during the first nine months of FY26, down 40 bps on year, and its net sales grew 4.7% during this time. 

 

The board of United Spirits approved an interim dividend of INR 6 per share for the current financial year, the company said. The record date has been fixed as Jan. 27.

 

On Tuesday, shares of the company closed 0.5% lower at INR 1,318.60 on the National Stock Exchange. The company detailed its December quarter earnings post market hours.  End

 

Edited by Tanima Banerjee

 

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