United Spirits shares in focus after Q1 profit drops 14% despite revenue growth

Shares of United Spirits are set to be in focus on Thursday after the Diageo-controlled liquor maker posted a 14% decline in consolidated net profit to Rs 417 crore for the June quarter of FY26, even as revenues inched higher on steady growth in its core beverage alcohol and sports businesses.

United Spirits Ltd (USL) reported on Wednesday that its net profit for the quarter ended June 30 fell from Rs 485 crore a year earlier to Rs 417 crore, according to a regulatory filing. Revenue from operations rose marginally to Rs 6,295 crore, up from Rs 6,238 crore in the corresponding period last fiscal, while total expenses increased 2.79% to Rs 5,776 crore.

The company said its June quarter EBITDA was Rs 644 crore, down 9.7%, largely due to a one-off indirect tax item impact and relatively higher A&P in the standalone business.

Business performance

Income from USL’s beverage alcohol segment climbed 8.37% to Rs 2,549 crore. Its sports subsidiary, Royal Challengers Sports Private Ltd (RCSPL), which owns the RCB teams in the IPL and WPL, posted a 15.73% rise in revenue to Rs 478 crore.

Consolidated net sales value grew 9.4% to Rs 3,021 crore, driven by the 8.4% growth in the standalone business and 15.7% reported growth of the sports business housed in the 100% subsidiary RCSPL, the company said.

The Prestige & Above segment contributed 88.3% of net sales in the quarter, while the Popular segment, accounting for 9.8% of net sales, grew 13.6%. Total income was Rs 6,367 crore, up 1.5% year-on-year.

Management view

“We delivered a resilient quarter with the Prestige & Above portfolio sustaining its growth momentum, while cycling a high prior year base. The quarter also marked the completion of the Nao Spirits acquisition,” said Managing Director and CEO Praveen Someshwar.

USL, which owns brands such as McDowell’s, Royal Challenge, Signature, Johnnie Walker and Black Dog, saw its shares close at Rs 1,306.80 on the BSE on Wednesday, up 0.71%. The stock has fallen 21% so far in 2025 and is down 3.6% over the past month.

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