United Spirits (UNITDSPR) Q4 24/25 earnings summary

Executive summary

• Achieved high-teen EBITDA margin and return on capital employed of 26.4% for FY2025, with resilient top-line and profit growth despite a challenging demand environment.

• Revenue from operations grew to ₹27,276 crore for FY25, up from ₹26,018 crore year-over-year, with consolidated net profit at ₹1,582 crore, up from ₹1,408 crore.

• Focused on premiumization, innovation, and portfolio reshaping, with 70% of growth from the top half of the portfolio and strong contributions from both premium and lower prestige segments.

• Strengthened organizational capabilities, digital transformation, and advanced ESG commitments, including water efficiency and renewable energy.

• Board recommended a final dividend of ₹8 per share (400% of face value) for FY25, subject to shareholder approval.

Financial highlights

• Core Net Sales Value (NSV) grew 8.2% year-over-year; gross profit up 11.5%; consolidated EBITDA for FY25 reached ₹2,243 crore, up from ₹2,001 crore.

• EBITDA margin reached 17.8%; pre-exceptional EPS at INR22.3; consolidated EPS for FY25 was ₹22.28, up from ₹19.83.

• Cost optimization program delivered INR 700 million to P&L and INR 150–200 million in working capital efficiencies.

• Free cash flow generated at INR1,300 Cr; cash and cash equivalents (consolidated) increased to ₹1,328 crore as of March 31, 2025.

• Dividend per share at INR12.0, including a final dividend of INR8.0 (subject to approval).

Outlook and guidance

• Premiumization and innovation to remain key growth drivers, with a focus on both global and local trademarks.

• Margin expected to remain in the high-teen range for the next couple of years, with aspirations for marginal expansion through productivity and pricing.

• India consumer opportunity remains robust with over 100 million individuals entering legal drinking age in the next five years.

• Management remains confident in the recoverability of key receivables and expects continued growth in core beverage alcohol and sports segments.

• Commodity cost environment currently stable; next inflection point expected with ethanol price policy in late 2025.