India · Delayed Price · Currency is INR United Spirits Earnings Call Transcripts
Fiscal Year 2027
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Strong double-digit growth in the Prestige & Above portfolio offset Maharashtra headwinds, with Smirnoff and Signature driving momentum. EBITDA rose 4.1% YoY to INR 432 crore, and PAT surged 51% to INR 391 crore. UK-India FTA and Karnataka reforms are expected to further boost growth.
Fiscal Year 2026
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Double-digit growth was achieved in most of the portfolio, led by premiumization and innovation, despite regulatory headwinds in key states. Margins improved, cash flow was strong, and the outlook remains positive with continued focus on premium brands and productivity.
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Q3 FY26 saw resilient growth with strong luxury and premium segment performance, offsetting Maharashtra headwinds from MML. Rest of India delivered robust P&A volume and value growth, gross margins improved, and guidance for double-digit P&A growth is maintained.
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Double-digit growth in Prestige & Above segment and strong margin expansion drove robust Q2 and H1 results, despite policy headwinds in Maharashtra and Andhra Pradesh. Premiumization, innovation, and agile execution supported performance, with continued optimism for the festive season.
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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
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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.
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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.
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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.
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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.