Financial Performance Overview

United Spirits Ltd. reported unaudited standalone results for Q1 FY27 (quarter ended 30 June 2026) with net sales value (NSV) of INR2,703 Crore, representing 6.0% year-on-year growth. Profit after tax (PAT) surged 51.6% to INR391 Crore. EBITDA reached INR432 Crore, up 4.1% year-on-year, with an EBITDA margin of 16.0% (contraction of 30bps from Q1FY26).

Revenue and Segment Performance

Net Sales Breakdown:

  • Gross revenue: INR6,113 Crore (Q1FY26: INR5,823 Crore)
  • Excise duty: INR3,410 Crore (Q1FY26: INR3,274 Crore)
  • Net sales: INR2,703 Crore (Q1FY26: INR2,549 Crore)

Segment Performance:

| Segment | Volume (000 cs) | Volume Movement % | NSV (INR Cr) | NSV Movement % |

| Prestige & Above | 12,404 | (1.3)% | 2,478 | +10.1% |

| Popular | 2,070 | (14.1)% | 206 | (17.5)% |

| Other | - | - | 19 | (60.2)% |

| Total | 14,474 | (3.4)% | 2,703 | +6.0% |

  • Prestige & Above segment accounted for 91.7% of net sales (up 3.4 percentage points YoY)
  • Popular segment accounted for 7.6% of net sales (down 2.2 percentage points YoY)
  • Prestige & Above growth driven by Smirnoff local flavor innovation and broad-based portfolio growth
  • Popular segment decline due to adverse policy impacts in Maharashtra and Karnataka excise slab changes

Profitability Metrics

Margins and Costs (% of net sales):

| Metric | Q1FY27 | Q1FY26 | Change |

| Gross profit margin | 46.1% | 44.0% | +212 bps |

| Staff cost | (4.9)% | (5.3)% | Improvement |

| Marketing spends | (11.5)% | (9.3)% | Increase |

| Other overheads | (13.7)% | (13.0)% | Increase |

| EBITDA margin | 16.0% | 16.3% | (30 bps) |

Profit Bridge (INR Crore):

  • Gross profit: INR1,246 Crore (+11.2% YoY)
  • Staff cost: INR133 Crore (Q1FY26: INR136 Crore)
  • Marketing spends: INR312 Crore (Q1FY26: INR238 Crore)
  • Other overheads: INR369 Crore (Q1FY26: INR332 Crore)
  • Other income: INR222 Crore (includes INR150 Crore dividend income from Royal Challengers Sports Private Limited)
  • Depreciation: INR70 Crore (Q1FY26: INR68 Crore)
  • Finance cost: INR30 Crore (primarily non-debt related items)
  • Exceptionals: INR81 Crore (primarily organization restructuring and supply agility program)
  • Tax: INR82 Crore (Q1FY26: INR90 Crore)
  • EPS: INR5.38 (Q1FY26: INR3.55)

Performance Drivers and Challenges

Positive Factors:

  • Sustained revenue growth management interventions
  • Better product mix driving gross margin expansion
  • Productivity flow-through benefits
  • Dividend income of INR150 Crore from RCSPL
  • Consumer-centric interventions supporting Prestige & Above growth

Challenges:

  • Adverse policy impact in Maharashtra affecting both segments
  • Recent policy changes in Karnataka impacting Popular segment realizations
  • West Asia crisis led adverse impact on margins
  • Higher A&P investments (11.5% of net sales vs 9.3% in Q1FY26)
  • Volume decline of 3.4% overall

Management Commentary

Mr. Praveen Someshwar, CEO & Managing Director, stated: "We have commenced fiscal 2027 on a strong note with double-digit growth in the Prestige & Above segment. Our consumer centric interventions give us confidence to increase growth further as the year progresses. We continue to future-proof our portfolio while creating enduring value for all our stakeholders."

Additional Information

  • Results are presented on a standalone basis in compliance with Schedule III of the Companies Act, 2013
  • Revenue from operations is inclusive of excise duty
  • Q&A conference call scheduled for Thursday, 23rd July 2026 at 4:00 pm IST hosted by Mr. Praveen Someshwar (MD & CEO) and Mr. Pradeep Jain (ED & CFO)
  • The company maintains 34 manufacturing facilities across India

Key Financial Ratios

  • Gross profit growth: +11.2% YoY
  • EBITDA growth: +4.1% YoY (Q1FY26: -9.4%)
  • PAT growth: +51.6% YoY
  • A&P reinvestment rate: 11.5% of net sales
  • Prestige & Above saliency: 91.7%