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United Spirits Q2 Results: Net profit falls 2%, misses estimates as Popular segment slumps - Published OnOct 28, 2026 | 18:28 IST - Last Updated OnOct 28, 2026 | 18:28 IST Higher promotional spending and a sharp slump in budget liquor sales dragged down the liquor maker's quarterly profit below estimates, despite solid growth in its premium and luxury portfolios. Discover how upcoming festive demand and new scotch relaunches are expected to impact margins. Diageo-controlled liquor maker United Spirits Ltd on Wednesday (October 28) reported a 2.1% year-on-year decline in net profit to ₹462 crore for the September quarter, compared with ₹472 crore in the year-ago period. The profit figure was below the CNBC-TV18 poll estimate of ₹471 crore. Revenue rose 2.8% to ₹3,258 crore from ₹3,170 crore a year earlier, but fell short of the CNBC-TV18 poll estimate of ₹3,348 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 4.3% year-on-year to ₹643 crore from ₹672 crore. However, EBITDA came in above the CNBC-TV18 poll estimate of ₹637 crore. The EBITDA margin stood at 19.7%, compared with 21.2% in the year-ago quarter. The margin was above the CNBC-TV18 poll estimate of 19%. The company attributed the decline to proactive A&P spending ahead of the season and higher investments behind its trademarks. Net Sales Value United Spirits reported net sales value (NSV) of ₹3,258 crore for the second quarter of fiscal year 2027, up 2.8% year-on-year. The Prestige & Above segment grew 6.3%, despite a high base in the year-ago quarter, driven by Smirnoff local flavour innovation, the J&B Scotch relaunch and growth in the luxury portfolio. This was partially offset by the continuing impact of adverse policy in Maharashtra. The Popular segment’s NSV stood at ₹181 crore, down 22.7% on a like-for-like basis. The decline was driven by the impact of MML in Maharashtra and recent policy changes in Karnataka, where excise slab changes adversely affected realisations and segment growth. Gross profit grew 4.7%, while the gross margin expanded 88 basis points to 48% from a year earlier. The improvement was supported by a better product mix and productivity gains, partially offset by the continued impact of the West Asia crisis. The company’s advertising and promotion (A&P) reinvestment rate increased to 11.6% of NSV from 7.6% in the year-ago quarter, reflecting investments behind brands and new launches ahead of the festive season. Finance cost stood at ₹24 crore for the quarter, primarily on account of customary non-debt-related items. Net profit margin stood at 14.2%. First Half For the first half of fiscal year 2027, NSV rose 4.2% year-on-year to ₹5,961 crore. The Prestige & Above segment grew 7.8%, driven by Smirnoff local flavour innovation and the luxury portfolio, partly offset by regulatory headwinds in Maharashtra and disruption in the exports business. The Popular segment’s NSV declined 20.6% to ₹354 crore in the first half, due to policy-related headwinds in Maharashtra owing to MML and in Karnataka following excise slab changes. Gross profit increased 7.5% in the first half, with the gross margin at 47.1%. Revenue growth management initiatives, including headline pricing and product mix improvements, along with productivity initiatives, supported the performance, partly offset by the impact of the West Asia crisis. The A&P reinvestment rate stood at 11.6% of NSV, compared with 8.4% a year earlier, reflecting targeted investments behind key trademarks. Reported EBITDA declined 1.1% to ₹1,075 crore, while the EBITDA margin contracted 97 basis points to 18%. Finance cost stood at ₹54 crore, on account of customary non-debt-related items. Profit after tax grew 16.8% year-on-year to ₹853 crore, with a net profit margin of 14.3%. For the first half ended September 30, 2026, the Prestige & Above segment accounted for 93.5% of NSV, up 3.1 percentage points from the year-ago period. The Popular segment accounted for 5.9% of NSV, down 1.9 percentage points. For the quarter ended September 30, 2026, the Prestige & Above segment accounted for 94.1% of NSV, up 3.1 percentage points year-on-year. The Popular segment accounted for 5.6% of NSV, down 1.8 percentage points. Praveen Someshwar, CEO and Managing Director, said, "We delivered a resilient quarter despite a strong prior-year base and regulatory headwinds, while continuing to invest behind our brands for long-term growth. The relaunch of J&B Scotch, enabled by the India-UK FTA, offers consumers a compelling proposition that will help recruit and deepen Scotch penetration. We also continue to unlock new avenues for growth, most recently, entering the Ready-to-Drink (RTD) segment with Smirnoff Ice to give consumers a convenient new choice. We look ahead to the festive quarter with confidence." Shares of United Spirits Ltd ended at ₹1,229.00, down by ₹36.00, or 2.85%, on the BSE.
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