United Spirits Doubles Down on Advertising as Growth Slows

United Spirits has sharply stepped up its advertising and sales promotion spending, signalling an aggressive brand-building push even as revenue growth remains under pressure.

The Diageo India–owned liquor maker spent ₹523 crore on advertising and promotions in the December quarter (Q3 FY26), more than doubling its outlay from ₹243 crore in the September quarter. This represents a steep 115.2% sequential increase. Compared with the same period last year, ad spends were also up 36.9% from ₹382 crore.

The higher marketing investment came alongside a quarter-on-quarter improvement in revenue. Revenue from operations rose 10.3% to ₹7,942 crore in Q3 FY26, compared with ₹7,199 crore in the previous quarter. However, year-on-year growth remained muted at 2.7%, highlighting a challenging demand environment. Total income for the quarter stood at ₹7,993 crore, up 9.8% sequentially and 2.4% from a year ago.

The surge in advertising expenditure weighed on profitability on a sequential basis. Profit before tax (PBT) fell 13.3% quarter-on-quarter to ₹541 crore from ₹624 crore in Q2 FY26. On a year-on-year basis, however, PBT rose 12.7% from ₹480 crore in Q3 FY25. Profit after tax (PAT) declined 9.9% sequentially to ₹418 crore, compared with ₹464 crore in the previous quarter, but jumped 24.8% from ₹335 crore a year earlier.

For the nine months ended December 31, 2025, United Spirits continued to prioritise brand investment. Advertising and sales promotion expenses for the period reached ₹1,004 crore, up 23.2% from ₹815 crore in the same period last year. Over the same nine-month period, total income grew 4% year-on-year to ₹21,640 crore, while profit after tax increased to ₹1,299 crore from ₹1,161 crore.

The numbers underline United Spirits’ strategy of pushing brand visibility and market presence, even at the cost of short-term margin pressure, as it navigates a slower growth phase.