New Delhi: United Spirits Ltd, the Diageo-controlled alcoholic beverages company, reported a 2.1% year-on-year decline in consolidated net profit to ₹462 crore for the second quarter of financial year 2026-27, compared with ₹472 crore in the corresponding quarter last year. The results fell short of market expectations, as weaker performance in the Popular segment and lower operating margins weighed on profitability.
Revenue from operations increased 2.8% to ₹3,258 crore from ₹3,170 crore a year earlier, but remained below the CNBC-TV18 poll estimate of ₹3,348 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 4.3% to ₹643 crore from ₹672 crore, although the figure exceeded the estimated ₹637 crore. The EBITDA margin contracted to 19.7% from 21.2% in the year-ago quarter, but was above the expected 19%.
The company’s net sales value (NSV) increased 2.8% to ₹3,258 crore during the quarter. Its Prestige and Above segment recorded 6.3% growth despite a high comparative base, supported by local flavour innovations in Smirnoff, the relaunch of J&B Scotch and growth in the luxury portfolio. However, the performance was partially offset by the continuing impact of adverse policy changes in Maharashtra.
The Popular segment faced sharper pressure, with net sales value declining 22.7% on a like-for-like basis to ₹181 crore. According to the company, the decline reflected the impact of Maharashtra’s minimum margin-related (MML) policy and recent excise changes in Karnataka, which affected price realisations and segment growth.
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Advertising and promotion spending increased significantly ahead of the festive season, with the reinvestment rate rising to 11.6% of NSV from 7.6% a year earlier. The company said the higher expenditure reflected increased investment behind established brands and new product launches. Finance costs stood at ₹24 crore, while the net profit margin was 14.2%.
The quarterly performance highlights the contrasting trends within United Spirits’ portfolio, as premium and luxury brands continued to grow while the Popular segment faced policy-related challenges. The company’s ability to sustain premiumisation, manage marketing investments and navigate state-level excise changes will remain important to its financial performance.
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