United Spirits (UNITDSPR) Q1 25/26 earnings summary

Executive summary

• Net sales value grew 8.4% year-over-year, with Prestige & Above segment up 9% despite muted demand and policy headwinds, particularly in Maharashtra.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by auditors, with no material misstatements identified.

• The company completed the acquisition of a majority stake in Nao Spirits, expanding its beverage portfolio and supporting portfolio strength.

• The company remains cautiously optimistic, leveraging premiumization, innovation, and format-led recruitment as growth levers.

• Social and economic impact assessment highlights significant employment and tax contributions, with a focus on sustainability and community programs.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹6,295 crore, up from ₹6,238 crore in Q1 FY25.

• Standalone net profit for Q1 FY26 was ₹258 crore, with a PAT margin of 10.1%.

• Gross margin for the quarter was 44%; underlying gross margin (excluding a one-off indirect tax expense) was 45.5%, up 107 bps year-over-year.

• Reported EBITDA was INR 415 crore; underlying EBITDA (excluding one-off) was INR 455 crore, flat year-over-year.

• Basic and diluted EPS for Q1 FY26 stood at ₹5.87 (consolidated) and ₹3.55 (standalone).

Outlook and guidance

• Management maintains double-digit growth aspiration for Prestige & Above, despite Maharashtra headwinds.

• EBIT growth is expected to outpace sales growth, with continued focus on productivity and cost interventions.

• Full-year marketing investment guidance remains at 9.5%-10% of net sales.

• Import duty reduction benefits expected to materialize in the April-June quarter of next fiscal.

• Management continues to focus on growth initiatives, including the integration of Nao Spirits and ongoing rationalization of non-core assets.