This article first appeared on GuruFocus .
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P&A Volume Growth (excluding Maharashtra):6.4%
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Reported P&A Growth:10.1%
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NSV Growth (excluding Maharashtra):14.8%
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Overall Price/Mix (excluding Maharashtra):5.4%
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Prestige & Above Price/Mix (excluding Maharashtra):8.4%
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Marketing Reinvestment Rate:11.3% of net sales
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EBITDA:INR 432 crore
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EBITDA Margin:16%
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Dividend Income from Royal Challenger Sports Private Limited:INR 150 crore
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Exceptional Charge:INR 81 crore
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Profit After Tax:INR 391 crore, a growth of 51%
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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United Spirits Ltd ( BOM:532432 ) reported strong double-digit growth in its Prestige & Above (P&A) portfolio, despite challenges in Maharashtra.
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The company achieved significant milestones with its Royal Challenge and Signature trademarks, both reaching notable sales figures.
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Smirnoff's innovative local flavors, such as Minty Jamun and Mango Mirchi, have driven substantial growth, with the brand achieving impressive sales in Q1.
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The implementation of the UK Free Trade Agreement (FTA) is expected to improve access to scotch, encouraging further premiumization.
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The company is actively working on organizational restructuring to enhance efficiency and agility, which is expected to strengthen its competitive edge.
Negative Points
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The company faced a 1.3% shrinkage in P&A volume, primarily due to adverse impacts in Maharashtra.
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Inflationary pressures, including those from the West Asia situation, are impacting consumer sentiment and certain segments.
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The popular segment, accounting for less than 10% of revenues, faced policy-related impacts in Maharashtra and Karnataka.
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The company absorbed a cost impact of approximately INR30 crore due to the West Asia crisis, affecting glass, energy, packaging, and logistics.
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There is uncertainty regarding the timeline for the completion of the Royal Challengers Sports Private Limited transaction, pending BCCI approval.
Q & A Highlights
Q: What is the status of the IPL team sale, and what approvals are pending? A: Pradeep Jain, CFO, stated that the Competition Commission of India approval has been received, and they are working with the BCCI for the final approval. The transaction is expected to close within the original six to seven-month timeline, likely by September or October.
Q: Can you provide insights on the impact of the India-UK trade deal on growth and costs? A: Pradeep Jain, CFO, mentioned that the treaty is now effective, and the first shipment has been cleared at concessional duty. The real consumer benefit and financial impact are expected around October. While there are benefits on the cost of goods sold, factors like currency depreciation and inflation may offset some advantages.
Q: How is the growth acceleration in the current quarter attributed, particularly regarding Smirnoff and McDowell's relaunch? A: Praveen Someshwar, CEO, explained that consistent growth has been seen in the Mid Prestige & Above segment, with Smirnoff contributing significantly. The McDowell's renovation is in early stages, and consumer response has been positive, which could drive future growth.
Q: What are the expectations for gross margins considering the current crude oil prices? A: Pradeep Jain, CFO, acknowledged that if crude remains high, there will be inflationary pressures. However, they plan to mitigate this through productivity measures and premiumization, aiming to grow profits slightly ahead of revenue growth.
Q: What is the expected impact of the Karnataka policy changes on volumes and pricing? A: Pradeep Jain, CFO, noted that the policy is favorable for the Prestige & Above portfolio, with a price reduction of 10% to 15% expected to drive volume growth. The full impact will be seen in the coming quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
