Image Source: CNBC TV 18
United Spirits, India’s leading liquor company under Diageo, has announced its Q1 FY26 results on August 13, 2025, revealing a resilient performance despite a challenging demand environment. The company witnessed growth in both operations and segment markets, marked by strategic expansions and prudent management decisions.
On Wednesday, United Spirits released its unaudited financial results for the quarter ending June 30, 2025. The company reported a consolidated net profit of ₹417 crore, reflecting a 14% dip compared to ₹485 crore for the same period last year. However, revenue from operations edged upward to ₹6,295 crore, up marginally from ₹6,238 crore a year ago, signaling robust underlying demand, portfolio strength, and successful market expansion.
Key Financial Highlights
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Consolidated Net Profit stood at ₹417 crore, down 14% year-on-year, influenced by one-off tax impacts and elevated advertising & promotion expenses.
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Total Revenue from Operations increased slightly to ₹6,295 crore from ₹6,238 crore last year.
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EBITDA came in at ₹644 crore, marking a decline of 9.7% attributed to higher standalone A&P spends and tax expenses.
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Net Sales Value (NSV) rose 9.4% year-on-year to ₹3,021 crore, propelled by standalone (8.4%) and sports business (15.7%) growth.
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Total Expenses rose by 2.8%, reaching ₹5,776 crore.
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Beverage Alcohol segment added ₹2,549 crore, up 8.4% versus prior year, while the Popular segment recorded healthy 13.6% growth.
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Royal Challengers Sports Private Ltd (RCSPL), owner of the RCB team, witnessed 15.7% revenue uptick to ₹478 crore.
Segment Performance and Market Expansion
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Prestige & Above (P&A) Segment:
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Contributed 88.3% of net sales in Q1 FY26 with continued strong growth momentum.
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Uniquely, the segment maintained its trajectory despite the high prior-year base, indicating robust brand resonance and market resilience.
Popular Segment:
Represented 9.8% of net sales, with sales rising 13.6% year-on-year, demonstrating traction among mass-market consumers.
Sports Business:
The sports segment, primarily through RCSPL, delivered a standout 15.7% year-on-year revenue increase, accounting for a critical diversification pillar.
Andhra Pradesh Re-entry:
United Spirits completed its successful re-entry into the Andhra Pradesh market after a five-year hiatus. This strategic move is expected to drive further volumes and growth in subsequent quarters.
Volume Growth and Portfolio Developments
Total sales volume climbed to 14.9 million cases, up from 13.6 million cases last year, marking a significant uptick in product demand.
The quarter saw the completion of the Nao Spirits acquisition, further augmenting United Spirits’ premium offerings and innovation quotient.
Brands such as Black & White, Signature, Royal Challenge, and McDowell’s continued to lead, with premiumisation and consumer-centric innovation remaining strong focal points.
Management Commentary
Praveen Someshwar, CEO & Managing Director, emphasized a resilient quarter driven by strategic focus areas, even as the prior high base and muted demand created headwinds. He highlighted ongoing portfolio optimizations, tailored consumer engagement, and effective revenue management as thrust areas for future growth.
Key Takeaways and Outlook
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The company demonstrated robust operational resilience, expanding its premium portfolio while actively managing market challenges.
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Strategic investments in brand building, sports diversification, and geographical expansion (notably Andhra Pradesh) underpin the company’s growth outlook.
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United Spirits’ performance signals continued commitment to innovation, consumer engagement, and operational efficiency, which are expected to support future growth despite sectoral challenges.
Source: PTI, The Hindu BusinessLine, Business Standard, The Week, Economic Times.
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