United Spirits Reports Strong 36.1% Profit Growth in Q2 FY26 on Robust Sales

United Spirits Limited (USL) reported a strong performance for the second quarter of the fiscal year 2026 (Q2 FY26). The company announced a consolidated profit after tax (PAT) of ₹464 crore, marking a significant year-on-year (YoY) increase of 36.1% compared to Q2 FY25. Consolidated net sales value (NSV) also showed robust growth, rising 11.6% YoY to ₹3,173 crore. This growth was primarily fueled by an 11.5% increase in the standalone business. The company's consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹660 crore, up 31.5% YoY, again driven by the performance of the standalone operations. On a standalone basis, USL's net sales reached ₹3,170 crore, a 11.5% YoY increase. Key drivers included the successful re-entry into the Andhra Pradesh market and favorable comparative figures from the previous year. However, this growth was partially offset by adverse policy changes in Maharashtra. Within the standalone net sales, the Prestige & Above segment experienced a 12.4% growth, while the popular segment grew by 9.2%. The net profit margin was 14.9%, with PAT growing 40.9% YoY. Total sales volume for the quarter rose to 16.6 million cases, up from 15.4 million cases in the same period last year. Praveen Someshwar, CEO & Managing Director of Diageo India (which operates as USL), commented, “We have delivered a strong quarter on topline and EBITDA growth and ended the first-half in line with our expectations, while navigating the regulatory headwinds in Maharashtra. Looking ahead, the second-half of the year is the all-important festive, holiday, and wedding season. We are excited about our commercial and marketing programmes bringing our brand portfolio alive for the consumers while driving category salience and growth.”

Impact: This positive financial report is likely to be viewed favorably by investors, potentially leading to an increase in United Spirits Limited's stock price. The consistent growth, successful market re-entries, and management's optimistic outlook for the festive season suggest continued momentum for the company. However, ongoing challenges like adverse policy changes in certain states could pose risks. Rating: 8/10

Difficult Terms: Consolidated Profit After Tax (PAT): The total profit of a company and its subsidiaries after deducting all expenses, interest, and taxes. Net Sales Value (NSV): The total revenue generated from sales of goods or services after deducting returns, allowances, and discounts. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): A measure of a company's operating performance, showing profitability before accounting for financing, tax, and non-cash expenses. Year-on-Year (YoY): A comparison of financial data from the current period to the same period in the previous year. Standalone Business: Refers to the financial performance of the company itself, excluding the results of any subsidiaries or joint ventures. Consolidated Business: Refers to the combined financial performance of a parent company and all its subsidiaries. Prestige & Above Segment: Refers to the premium and luxury categories of spirits. Popular Segment: Refers to the mass-market or more affordable categories of spirits. Sales Volume: The total quantity of products sold, usually measured in units or cases. Regulatory Headwinds: Challenges or obstacles arising from government rules, regulations, or policies. Commercial and Marketing Programmes: Strategies and activities undertaken by a company to promote and sell its products. Category Salience: The importance or prominence of a particular product category in the market or in a consumer's mind.