India · Delayed Price · Currency is INR United Spirits Earnings Call Transcripts
Fiscal Year 2026
-
Q3 FY26 saw resilient growth with strong luxury and premium segment performance, offsetting Maharashtra headwinds. Rest of India delivered robust P&A growth, and guidance for double-digit top-line growth is maintained, with FTA benefits expected later in the year.
-
Double-digit growth in Prestige & Above and strong margin expansion marked Q2 FY26, driven by premiumization, innovation, and robust performance in Andhra Pradesh, while Maharashtra remained challenging but outperformed the industry. Management maintains a cautiously optimistic outlook for the second half.
-
Net sales grew 8.4% year-over-year, with Prestige & Above up 9% despite policy headwinds in Maharashtra. Gross margin expanded 107 bps to 45.5% (underlying), and PAT margin reached 10.1%. Management remains committed to double-digit growth in Prestige & Above, leveraging portfolio strength and productivity.
Fiscal Year 2025
-
Delivered resilient growth with high-teen EBITDA margin and 26.4% ROCE, driven by premiumization, innovation, and strong brand performance. India-UK FTA and state reforms are set to boost future growth, while cost optimization and disciplined capital allocation support sustained profitability.
-
Q3 FY25 saw 14.8% NSV growth and 16.1% P&A growth, driven by festive demand and Andhra Pradesh ramp-up. Margins expanded, with EBITDA up 19.7% and gross margin at 44.7%. Outlook remains positive for double-digit P&A growth, despite top-end moderation and inflationary headwinds.
-
Net sales declined marginally year-on-year amid muted demand and ongoing disruption in a key northern state, but margins improved due to cost efficiencies and benign commodity inflation. Optimism for H2 is driven by festive season, Andhra Pradesh re-entry, and new product launches.
-
Q1 FY25 saw 8.3% sales growth and strong margin delivery, aided by premiumization and cost efficiencies. Full-year double-digit growth is reaffirmed, with a stronger H2 expected as new launches scale nationally. ENA inflation and regulatory changes remain key risks.