United Spirits (UNITDSPR) Q3 25/26 earnings summary

Executive summary

• Achieved resilient growth in both top and bottom line for Q3 FY26, with consolidated revenue at ₹7,942 crore and profit before tax at ₹541 crore, despite headwinds in Maharashtra due to MML introduction and competitive pricing pressures.

• Strong performance in luxury and premium segments, with notable growth in primary scotches, Smirnoff (flavor innovation), and Signature trademark.

• Rest of India (excluding Maharashtra) delivered healthy growth, with P&A volume up 6% and NSV up 14% year-over-year.

• Green shoots in consumer demand attributed to GST cuts, income tax rationalization, and favorable monsoons.

• Interim dividend of ₹6 per equity share (300% of face value) approved for FY26.

Financial highlights

• Nine-month overall volume and NSV growth at 4% and 9%, respectively; P&A segment at 4.5% and 9.8%.

• Excluding Maharashtra and Andhra Pradesh pipeline effects, nine-month P&A volume and NSV growth at 7.1% and 12.3%.

• EBITDA for the beverage alcohol segment in Q3 FY26 was ₹614 crore, up from ₹583 crore in Q3 FY25; nine-month EBITDA was ₹1,693 crore, up from ₹1,552 crore year-over-year.

• Earnings per share (consolidated, basic and diluted) for Q3 FY26 was ₹5.88, compared to ₹4.72 in Q3 FY25; nine-month EPS was ₹18.29, up from ₹16.35 year-over-year.

• Marketing reinvestment rate at 14% of net sales for the quarter, normalizing to 10.6% for nine months.

Outlook and guidance

• Double-digit P&A top-line growth guidance reaffirmed, excluding potential upside from the India-U.K. FTA.

• Price mix expected to remain at the higher end of the 6-8% range while Maharashtra headwinds persist.

• Cautiously optimistic for the upcoming wedding season and next quarters, with continued focus on commercial execution and agility.

• Anticipated FTA benefits on bulk Scotch to materialize in July-September quarter, with annualized impact estimated at INR 110-120 crore.

• Management continues to monitor regulatory changes, including the new Labour Codes, and will adjust accounting as needed.