United Spirits Shares Rise on Record Q2 Margins; Motilal Oswal Cautions on Valuation

Consumer Products

Updated on 31 Oct 2025, 06:14 am

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

United Spirits reported a strong second quarter with a 36.1% jump in net profit to Rs 464 crore and revenue up 11.6%. The company achieved a record EBITDA margin of 21.2%, driven by premium product mix and cost discipline. However, brokerage firm Motilal Oswal maintained a 'Neutral' rating with a Rs 1,399 target price, citing that current valuations are stretched despite solid operational performance and a steady growth outlook.

United Spirits Shares Rise on Record Q2 Margins; Motilal Oswal Cautions on Valuation

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Stocks Mentioned :

United Spirits Limited

Detailed Coverage :

United Spirits announced robust financial results for its second quarter, with consolidated net profit surging 36.1% to Rs 464 crore on a 11.6% rise in revenue to Rs 3,173 crore. A key highlight was the achievement of a record high EBITDA margin of 21.2%, an improvement of 340 basis points year-on-year, surpassing brokerage estimates. This was attributed to firm pricing, a favorable premium product mix, and stable input costs, alongside disciplined cost management, including reduced advertising spend. Volume growth was steady at 8%, led by the Prestige & Above segment.

Impact This news has a positive short-term impact on the stock price due to strong results, but the brokerage's caution on valuations introduces a potential overhang. Investors will monitor if the company can sustain growth at current demanding valuations. Rating: 6

Difficult Terms: Margins: The difference between the revenue generated by a company and the costs associated with producing its goods or services. EBITDA margin specifically refers to Earnings Before Interest, Taxes, Depreciation, and Amortization as a percentage of revenue. D-street: A colloquial term referring to the Indian stock market, specifically the financial district in Mumbai where the Bombay Stock Exchange (BSE) is located. Brokerage Firm: A company that buys and sells stocks and other securities on behalf of investors. Valuations: An analysis of a company's worth, often determined by comparing its stock price to its earnings, revenue, or other financial metrics. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance. EPS: Earnings Per Share. It represents the portion of a company's profit allocated to each outstanding share of common stock. Return on Equity (ROE): A measure of financial performance calculated by dividing net income by shareholders' equity. It shows how well the company generates profits from the money invested by shareholders. Basis Points: A unit equal to one-hundredth of one percent (0.01%). 100 basis points equal 1%. Consolidated Net Profit: The total profit of a parent company and all its subsidiaries, combined. Standalone Sales: Revenue generated by the company as a separate entity, without including its subsidiaries. Prestige & Above (P&A) segment: A classification of premium or higher-priced brands within a company's product portfolio.