United Spirits, the country’s largest liquor maker, on Thursday reported a 36.1% year-on-year rise in consolidated net profit for the second quarter (Q2) of FY26 to Rs 464 crore, beating street estimates by a wide margin. Bloomberg consensus estimates had forecast net profit at Rs 373 crore for the period.
Revenue for the quarter (net of excise) rose 11.6% year-on-year to Rs 3,173 crore, higher than the forecast of Rs 3,111 crore for the period, supported by strong brand performance and a re-entry into Andhra Pradesh, among the country’s key liquor markets. Consumer demand was also stable in Q2, despite favourable prior year comparatives being largely offset by adverse policy changes in Maharashtra, analysts said.
Revenue (including excise) for the maker of brands such as McDowells, Royal Challenge and Johnnie Walker, rose 7.9% year-on-year to Rs 7,199 crore for Q2.
Earnings before interest tax depreciation and amortisation rose 31.5% year-on-year to Rs 660 crore, outpacing street estimates of Rs 552 crore. Ebitda margin expanded to 9.2% from 7.5% last year, its results showed.
The surge in profit, the company said, was on the back of revenue growth management initiatives, mix improvement, sustained productivity as well as relatively stable inflation for major input commodity baskets.
The prestige and above (premium) segment accounted for 89.6% of net sales during the quarter, up 0.7 percentage points (70 basis points) versus last year. The popular (mass) segment account for 8.8% of net sales in Q2, up 0.2 percentage points (20 basis points) versus last year. One basis point is one-hundredth of a percentage point.
“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 programs bringing our brand portfolio alive for the consumers while driving category salience and growth,” Praveen Someshwar, CEO & Managing Director, United Spirits, said.
The quarterly earnings were shared after market hours. The stock settled 0.40% higher at Rs 1,393 apiece on the BSE, compared to a 0.70% decline in the benchmark Sensex.
United Spirits shares have fallen 3.54% in the last 12 months and 14.20% year-to-date. Out of 27 analysts tracking the company, 21 maintain a ‘buy’ rating, three recommend a ‘hold’ and three suggest ‘sell’, according to Bloomberg data. The average 12-month consensus price target of Rs 1,517.52 implies an upside of 8.8%.