Synopsis: Backed by improved margins, a stronger product mix, and sustained momentum in its premium portfolio, the liquor maker reported a steady quarter marked by healthy profitability and stable demand.
A liquor stock traded strong after reporting a strong set of quarterly earnings, driven by higher sales volumes and stable input costs. Investor sentiment remained upbeat as the company delivered growth across its premium and popular segments.
United Spirits Limited, India’s largest alcobev company with a market capitalisation of Rs. 1,05,716.81 crore, opened at Rs. 1,470 and hit an intraday high of Rs. 1,489 against the previous close of Rs. 1,393, marking a 6.9 percent rise at day’s high.
Financial Snapshot – Q2FY26 Standalone
Quarter-on-Quarter (QoQ): For the quarter ended September 2025, United Spirits reported standalone revenue of Rs. 3,170 crore, up 24.3 percent from Rs. 2,549 crore in the previous quarter. Operating profit rose 61.9 percent to Rs. 672 crore from Rs. 415 crore, while operating margin expanded to 21 percent from 16 percent. Profit before tax increased 81.6 percent to Rs. 632 crore from Rs. 348 crore, and net profit surged 82.9 percent to Rs. 472 crore from Rs. 258 crore. Earnings per share rose from Rs. 3.55 to Rs. 6.49.
Year-on-Year (YoY): On an annual comparison, revenue grew 11.5 percent from Rs. 2,843 crore to Rs. 3,170 crore. Operating profit climbed 32.5 percent from Rs. 507 crore to Rs. 672 crore, while operating margin expanded from 18 percent to 21 percent. Profit before tax advanced 41.4 percent to Rs. 632 crore from Rs. 447 crore, and net profit rose 40.9 percent to Rs. 472 crore from Rs. 335 crore. Earnings per share increased from Rs. 4.61 to Rs. 6.49.
Operational Highlights
Net sales stood at Rs. 3,170 crore, up 11.5 percent year-on-year, driven by the re-entry into the Andhra Pradesh market, strong performance from innovation led offerings, and favourable base effects from the prior year, partly offset by policy changes in Maharashtra. The Prestige & Above segment registered a 12.4 percent growth, while the Popular segment reported a 9.2 percent increase in net sales value. Gross profit rose 16.2 percent, and gross margin expanded by 190 basis points to 47.1 percent, supported by pricing flow-through, product mix improvement, and cost efficiency measures.
The company’s advertising and promotion re-investments accounted for 7.6 percent of net sales, reflecting continued brand support. EBITDA margin stood at 21.2 percent, a 337 basis point improvement over the previous year. Interest costs declined 16 percent year-on-year to Rs. 21 crore, while net profit margin improved to 14.9 percent. Total sales volume reached 16,605 thousand cases, up 7.7 percent from 15,414 thousand cases in Q2FY25, translating to around 16.6 million cases sold during the quarter.
Segment Analysis
The Prestige & Above segment contributed 89.6 percent of total net sales in Q2FY26, an improvement of 0.7 percentage points from the previous year. Segment sales grew 12.4 percent year-on-year, reinforcing the company’s premiumisation strategy.
The Popular segment accounted for 8.8 percent of total sales, a marginal decline of 0.2 percentage points, though its net sales increased 9.2 percent during the quarter.
Comments from the management
Mr. Praveen Someshwar, CEO & Managing Director, commenting on the Q2FY26 performance, said:
“We have delivered a strong quarter on topline and EBITDA growth and ended the first half in-line with our expectation while navigating the regulatory headwinds in the state of Maharashtra. Looking ahead, the second half of the year is the all-important festive, holiday and wedding season. We are excited about our commercial and marketing programs bringing our brand portfolio alive for the consumers while driving category salience and growth.”
About the Company
United Spirits Limited, a subsidiary of Diageo Plc., is among India’s leading beverage alcohol companies with an extensive portfolio of premium and luxury brands. Headquartered in Bengaluru, it operates 35 manufacturing facilities across India and is listed on both the NSE and BSE. The company manufactures, sells, and distributes iconic brands such as Johnnie Walker, Black Dog, Antiquity, Signature, Royal Challenge, McDowell’s No.1, and Godawan, India’s first artisanal single malt whisky. With a strong focus on sustainability and responsible consumption, Diageo India continues to promote its “Grain to Glass” vision and support inclusive growth across the alcobev ecosystem.
-Manan Gangwar
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