United Spirits reported a strong performance for the fourth quarter of FY26, posting a 27% year-on-year increase in profit, driven by robust demand for its premium liquor portfolio, including globally recognised brands such as Johnnie Walker, Antiquity, Black & White and Tanqueray.
The company, which is the Indian arm of Diageo, recorded a consolidated net profit of ₹5.71 billion for the quarter ended March 31, compared to ₹4.51 billion during the same period last year.
Revenue from operations rose 4.4% year-on-year to ₹68.38 billion, while expenses increased 4.1%, reflecting steady operational growth amid rising input costs across the alcoholic beverages sector.
→ AP High Court Seeks Government Response on 50% Liquor Shop Renewal Fee Hike→ Ball Corporation, Crown Holdings Advance ₹4,991 Crore Aluminium Can Investments in Uttar Pradesh
United Spirits continued to benefit from India’s growing premiumisation trend, with net sales value in its prestige and above segment rising 5% during the quarter. The company’s premium portfolio remains a key growth driver as consumers increasingly shift towards high-end spirits and international labels.
The company also recently completed the sale of its Royal Challengers Bengaluru franchise stake for approximately $1.78 billion to a consortium-led buyer. United Spirits stated that the divestment will help sharpen its strategic focus on its core beverage alcohol business.
Industry challenges, however, continue to persist. Earlier this year, global brewers including Heineken, Anheuser-Busch InBev and Carlsberg warned about rising packaging costs and potential supply disruptions caused by gas shortages linked to geopolitical tensions in the Middle East. Increasing prices of glass bottles and paper cartons have added pressure on operating margins across the industry.
Meanwhile, a significant policy shift in Karnataka is expected to support premium alcohol brands. The state government announced plans to remove liquor price controls and implement a strength-based excise taxation system from April 2026. The move is expected to provide companies greater pricing flexibility while reducing certain tax slabs.
Commenting on the development, United Spirits CEO Praveen Someshwar said the Karnataka policy reforms could accelerate the premiumisation journey in one of India’s largest alcohol markets.
The latest quarterly performance reinforces United Spirits’ position as one of India’s leading premium spirits companies, supported by strong consumer demand, strategic portfolio focus, and favourable regulatory developments in key markets.
About the Author
