This article first appeared on GuruFocus .
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Revenue Growth:Rest of India, excluding Andhra Pradesh and Maharashtra, grew by 10.9%.
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Mid-Prestige & Above Growth:17% growth in Rest of India, excluding Andhra Pradesh and Maharashtra.
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EBITDA Growth:11.6% increase, with EBITDA margin at 18.4%.
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Gross Margin:46.4%, up 172 basis points.
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Free Cash Flow:INR 1,375 crores generated during the year.
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Dividend:Total dividend distribution of INR 17 per share for the fiscal year.
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Return on Capital Employed (ROCE):28%, up from 26% last year.
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Productivity Gains:INR 415 crores in fiscal '26.
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Pricing and Revenue Growth Management:INR 182 crores impact, equivalent to 1.6% of last year's net sales.
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Net Sales Value (NSV) Growth:7.6% increase.
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Prestige & Above Segment Contribution:Increased from 56% to 60% of total portfolio.
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Smirnoff Volume:Exceeded 1 million cases, with Q4 volumes over 400,000 cases.
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Johnnie Walker Market Position:India is the number three market globally by volume and number four by value.
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Release Date: May 15, 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 growth in its premium segments, with Mid-Prestige and Above growing at high teens, indicating successful premiumization efforts.
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The company has successfully crossed 1 million cases for Smirnoff, with significant growth driven by local flavor innovations.
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United Spirits Ltd ( BOM:532432 ) has shown strong performance in the Rest of India, excluding Maharashtra and Andhra Pradesh, with double-digit growth in both Prestige & Above and total portfolio.
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The company has maintained a healthy EBITDA margin of 18.4%, supported by productivity improvements and revenue growth management.
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United Spirits Ltd ( BOM:532432 ) has increased its dividend payout ratio to 67%, reflecting strong cash flow generation and commitment to returning value to shareholders.
Negative Points
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The company faced headwinds in Maharashtra due to excise policy changes, impacting overall growth.
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McDowell's, a key brand for United Spirits Ltd ( BOM:532432 ), has experienced flat growth, prompting a need for transformation and relaunch efforts.
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Packaging material costs are expected to inflate by 4% to 5% in the first quarter, posing a challenge to maintaining gross margins.
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The Lower Prestige segment has shown flat growth, indicating challenges in this category compared to the faster-growing Mid and Upper Prestige segments.
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The company anticipates continued impact from the West Asia conflict, which could affect costs and margins in the short term.
Q & A Highlights
Q: Could you elaborate on your optimism regarding Karnataka following the recent policy changes? What is the impact of inflation on business in the first half of this year? A: Praveen Someshwar, CEO, explained that Karnataka's policy changes are progressive, reducing excise slabs and allowing pricing flexibility, which should lead to high double-digit growth. Pradeep Jain, CFO, noted that inflation, particularly in packaging materials, could impact gross margins by 1.25% to 1.5% in the first quarter, but operational efficiencies will be explored to offset this.
Q: Are you gaining market share in the vodka segment with local flavors in Smirnoff? How does Maharashtra's situation affect your market share? A: Praveen Someshwar, CEO, stated that Smirnoff's local flavor innovation has significantly boosted growth, with the brand achieving over 400,000 cases in the last quarter. The growth is strong across all states, not just Maharashtra, indicating a gain in market share.
Q: What is the status of the McDowell's transformation, and what caused the previous market share loss? A: Praveen Someshwar, CEO, explained that McDowell's transformation involved a complete overhaul of the liquid, packaging, and overall bundle. The previous market share loss was due to not winning with consumers, but the new strategy is expected to reinvigorate growth.
Q: How do you view the impact of the UK-India FTA on scotch pricing? A: Pradeep Jain, CFO, mentioned that the FTA could lead to a high single-digit reduction in BIO scotch prices and a 4% to 5% reduction in BII scotch prices, with the intention to pass these savings on to consumers.
Q: What are the future growth opportunities in your portfolio, and are there any new categories you plan to explore? A: Praveen Someshwar, CEO, highlighted ongoing category creation in tequila and vodka, with plans to enhance brandy offerings. The company is evaluating global brands for the Indian market and expects to explore new spaces over the next 12 to 18 months.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
