United Spirits Limited (USL), a subsidiary of Diageo Plc., reported its unaudited standalone financial results for the second quarter (Q2FY27) and first half (H1FY27) ended 30 September 2026 through a regulatory filing to BSE Limited and National Stock Exchange of India Limited.

Q2FY27 Performance Highlights

  • Net Sales Value (NSV) reached ₹3,258 crore, showing growth of 2.8% year-over-year (YoY)
  • Prestige & Above (P&A) segment NSV was ₹3,065 crore, growing 6.3% YoY with 94.1% saliency of total NSV
  • Popular segment NSV declined 22.7% to ₹181 crore on a like-for-like basis
  • Gross profit grew 4.7% to ₹1,563 crore with gross margin expansion of 88 basis points to 48.0%
  • Marketing spends increased significantly to ₹378 crore (11.6% of NSV) compared to ₹241 crore (7.6%) in Q2FY26
  • EBITDA declined 4.3% to ₹643 crore with margin contraction of 146 basis points to 19.7%
  • Profit After Tax (PAT) stood at ₹462 crore, declining 2.1% YoY
  • Earnings Per Share (EPS) was ₹6.35 compared to ₹6.49 in Q2FY26
  • Finance cost was ₹24 crore, primarily from non-debt related items
  • Exceptional items of ₹11 crore were recorded from sale of a manufacturing unit license under the Supply Agility Program

H1FY27 Performance Highlights

  • NSV reached ₹5,961 crore, growing 4.2% YoY
  • P&A segment NSV was ₹5,576 crore, growing 7.8% YoY with 93.5% saliency
  • Popular segment NSV declined 20.6% to ₹354 crore
  • Gross profit grew 7.5% to ₹2,809 crore with gross margin of 47.1%
  • Marketing spends were ₹690 crore (11.6% of NSV) compared to ₹479 crore (8.4%) in H1FY26
  • EBITDA declined 1.1% to ₹1,075 crore with margin contraction of 97 basis points to 18.0%
  • PAT grew 16.8% to ₹853 crore with net profit margin of 14.3%
  • EPS was ₹11.73 compared to ₹10.04 in H1FY26
  • Finance cost was ₹54 crore from non-debt related items
  • Exceptional items of ₹70 crore were recorded, primarily from organization restructuring and Supply Agility Program

Segment Performance Review

Prestige & Above Segment (Q2FY27):

  • Volume: 14,190 thousand cases (decline of 1.2%)
  • NSV: ₹3,065 crore (growth of 6.3%)
  • Excluding brandy reclassification, volume declined 1.6% and value grew 6.5% on like-for-like basis

Popular Segment (Q2FY27):

  • Volume: 1,579 thousand cases (decline of 29.7%)
  • NSV: ₹181 crore (decline of 22.7%)

Prestige & Above Segment (H1FY27):

  • Volume: 26,997 thousand cases (decline of 1.0%)
  • NSV: ₹5,576 crore (growth of 7.8%)
  • Excluding brandy reclassification, volume declined 1.5% and value grew 8.1% on like-for-like basis

Popular Segment (H1FY27):

  • Volume: 3,246 thousand cases (decline of 24.8%)
  • NSV: ₹354 crore (decline of 20.6%)

Key Business Developments

  • McDowells No.1 brandy was reclassified from Popular to Prestige & Above segment based on consumer price point effective Q2FY27, with prior periods restated accordingly
  • The company entered the Ready-to-Drink (RTD) segment with Smirnoff Ice launch
  • J&B Scotch was relaunched, enabled by the India-UK Free Trade Agreement (FTA)
  • Business was impacted by adverse regulatory policies in Maharashtra (MML impact) and Karnataka (excise slab changes)
  • West Asia crisis continued to adversely impact operations
  • Export business faced disruptions during the period

Financial Metrics Comparison

| Metric | Q2FY27 | Q2FY26 | H1FY27 | H1FY26 |

| Volume ('000 cases) | 15,769 | 16,605 | 30,243 | 31,589 |

| Gross Revenue (₹ Cr) | 7,001 | 7,192 | 13,114 | 13,015 |

| Excise Duty (₹ Cr) | (3,743) | (4,022) | (7,153) | (7,296) |

| COGS (₹ Cr) | (1,695) | (1,677) | (3,152) | (3,105) |

| Staff Cost (₹ Cr) | (153) | (175) | (286) | (311) |

| Other Overheads (₹ Cr) | (389) | (405) | (758) | (737) |

| Other Income (₹ Cr) | 64 | 76 | 286 | 137 |

| Depreciation (₹ Cr) | (74) | (65) | (144) | (133) |

| Tax (₹ Cr) | (158) | (160) | (240) | (250) |

Management Commentary

Mr. Praveen Someshwar, CEO & Managing Director, stated that the company delivered a resilient quarter despite a strong prior-year base and regulatory headwinds while continuing to invest behind brands for long-term growth. He expressed confidence heading into the festive quarter.

Investor Communication

A Q&A conference call was scheduled for Thursday, 29th October 2026 at 4:00 pm IST hosted by Mr. Praveen Someshwar (MD & CEO) and Mr. Pradeep Jain (Executive Director & CFO). Dial-in details were provided for global access.

Cautionary Statement

The document contained forward-looking statements subject to risks and uncertainties, with no obligation to update or revise based on future developments.