Financial Performance Overview
United Spirits Limited reported strong financial results for FY26 with consolidated net profit rising 18% to ₹1,838 crore and revenue growth of 7.6% to ₹12,448 crore. The company achieved EBITDA of ₹2,296 crore (11.6% growth) with margins expanding to 18.4% from 17.8% in FY25. The Prestige & Above segment contributed 89.6% of net sales value with 8.6% growth, driving overall performance.
Dividend Declaration and Corporate Actions
The Board recommended a final dividend of ₹11 per share, following an interim dividend of ₹6 per share paid earlier, resulting in total dividend payout of ₹1,236 crore for FY26. The company also approved the sale of 100% stake in Royal Challengers Sports Private Limited for ₹16,663 crore, subject to regulatory approvals from CCI and BCCI, with completion expected within 12 months from March 31, 2026.
Governance and Board Matters
The 27th Annual General Meeting is scheduled for August 4, 2026, to consider eight resolutions including adoption of financial statements, dividend declaration, and appointment of directors and auditors. The Board held 11 meetings during FY26 with 50% independent director representation. Key management changes included the appointment of Mr. Praveen Someshwar as MD & CEO and proposed appointments of Mr. Vinod Rao as Independent Director and Mr. Daniel Mobley as Non-Executive Director.
Tax and Regulatory Matters
The company faces significant tax disputes totaling ₹2,304 crore across various statutes including income tax (₹385 crore), sales tax/VAT (₹1,517 crore), GST (₹1,039 crore), and state excise (₹243 crore). Amounts paid under protest stand at ₹1,119 crore. The matters are pending at multiple judicial forums including Assessing Officers, Appellate Tribunals, High Courts, and Supreme Court.
Operational and CSR Initiatives
United Spirits implemented its Supply Agility Program resulting in exceptional items of ₹91 crore including restructuring costs and impairment charges. CSR spending reached ₹30.19 crore on projects including afforestation in Rajasthan (200,000+ saplings), drink driving awareness programs (350,000+ beneficiaries), and hospitality skills training (1,968 individuals). The company maintained 36 manufacturing facilities (9 owned, 27 third-party) across India.
Auditor Appointments and Compliance
Price Waterhouse & Co Chartered Accountants LLP completed their term as statutory auditors, with the company proposing appointment of Walker Chandiok & Co LLP for a 5-year term. The financial statements received unmodified audit opinion with emphasis on historical inquiries and tax provision assessments. The company confirmed full compliance with SEBI Listing Regulations, Companies Act, 2013, and secretarial standards.
Liquidity and Capital Structure
The company maintained strong liquidity with cash and cash equivalents of ₹859 crore and negative net debt of ₹446 crore. Total assets stood at ₹13,864 crore with equity of ₹8,721 crore. Related party transactions included purchase of raw materials from Diageo entities (₹656 crore) and royalty payments (₹17 crore), while dividend of ₹732 crore was paid to holding company Diageo Relay B.V.