United Spirits' consolidated revenue from operations declined by 2.57% year-on-year to ₹7,014 crore in the second quarter of fiscal year 2027 (Q2 FY27). Despite this drop, the company’s gross margin surpassed analysts' estimates, leading to a 4% jump in its shares. The beverage alcohol segment showed growth, increasing by 2.9% compared to the same period last year.
- Consolidated revenue fell 2.57% to ₹7,014 crore in Q2 FY27.
- Beverage alcohol segment revenue rose 2.9% year-on-year.
- EBITDA declined 4.3% to ₹643 crore due to higher advertising and promotion (A&P) spending.
- Gross margin improved by 88 basis points to 48%.
- Net sales value (NSV) at standalone level increased 2.8% to ₹3,258 crore.
- Prestige and Above (P&A) segment grew 6.3% despite regulatory challenges.
What were the key financial results for United Spirits in Q2 FY27?
United Spirits reported a consolidated revenue from operations of ₹7,014 crore in Q2 FY27, down 2.57% from ₹7,199 crore in the same quarter last year. The company’s EBITDA, or operating profit, decreased by 4.3% to ₹643 crore from ₹672 crore in Q2 FY26. This decline was mainly due to increased advertising and promotion expenses ahead of the festive season.
How did the beverage alcohol segment perform?
The beverage alcohol segment showed positive growth, with revenue rising 2.9% year-on-year to ₹3,264 crore in Q2 FY27, compared to ₹3,173 crore in the previous year’s quarter. At the standalone level, United Spirits’ net sales value (NSV) increased by 2.8% to ₹3,258 crore. NSV is the gross sales value minus discounts, returns, and allowances.
What trends were observed in the Prestige and Above (P&A) and Popular segments?
The P&A segment, which includes premium brands, grew 6.3% year-on-year despite facing regulatory challenges in Maharashtra and Karnataka. This growth was supported by innovations such as Smirnoff local flavors, the relaunch of J&B Scotch, and expansion in the luxury portfolio. Conversely, the Popular segment declined by 22.7% in net sales value during the quarter and accounted for 5.6% of total net sales, down 1.8 percentage points from the previous year.
How did regulatory changes impact United Spirits?
Regulatory changes, especially in Maharashtra and Karnataka, affected the company’s performance. The Maharashtra Made Liquor (MML) policy and excise slab changes in Karnataka led to lower realizations and growth challenges in the P&A segment during the first half of FY27.
What did analysts say about the company’s performance?
Analysts noted that the gross margin improved by 88 basis points to 48%, driven by better product mix and productivity. However, the EBITDA margin declined by 146 basis points to 19.7%, mainly due to increased advertising spend exceeding 57% of sales. Goldman Sachs analysts highlighted that while EBITDA fell 5% year-on-year, the gross margin beat expectations, with higher advertising costs and tax changes in Maharashtra weighing on results.
What are the company’s future plans and outlook?
Praveen Someshwar, CEO and Managing Director of United Spirits, stated that the company delivered a resilient quarter despite a strong prior-year base and regulatory headwinds. The relaunch of J&B Scotch, enabled by the India-UK free-trade agreement, aims to attract more consumers and increase Scotch penetration. The company also entered the Ready-to-Drink (RTD) segment with Smirnoff Ice, offering consumers convenient new choices. United Spirits looks forward to the upcoming festive quarter with confidence.
How did the stock perform following the results?
Following the announcement, United Spirits shares rose by 2.73% to ₹1,260.90 per equity share as of 11:29 AM on October 29, 2026. Despite this gain, the stock has declined over recent periods, falling more than 2% in the past week, 8% over the past month, and 11% year-to-date. The stock reached a 52-week high of ₹1,563.40 on August 21, 2026, and a 52-week low of ₹1,210.80 on April 7, 2026.
What is the market capitalization of United Spirits?
As of October 29, 2026, United Spirits has a total market capitalization of ₹91,638.93 crore, according to data from the National Stock Exchange (NSE).
