United Spirits Limited Earnings Summary — Q1 FY2027
United Spirits Reports 11% Profit Growth in Beverage Alcohol Segment Amidst Continued Premiumization Drive
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 11.3% sequentially in Q1 FY2027.
- Revenue of ₹2,708 Cr is 10.4% lower year-on-year.
- Revenue has compounded at -1.2% annualised over the last 10 quarters.
- Net profit of ₹463 Cr is 11.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 33.7% annualised across the period.
- Operating margin stands at 15.8% in Q1 FY2027.
- Operating margin compressed by 528 bps year-on-year.
- Over the last two years operating margin has contracted by 995 bps.
- PBT margin is 20.1%.
- Expenses grew -4.4% against revenue growth of -10.4%.
- Operating profit of ₹429 Cr is 32.8% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 44/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 2,708 | 3,054 | 3,691 | 3,173 | 3,021 | 2,946 | 3,433 | 2,844 | 2,761 | 2,783 |
| Expenses | Stable | 2,279 | 2,461 | 3,077 | 2,514 | 2,383 | 2,437 | 2,868 | 2,344 | 2,049 | 2,449 |
| Operating Profit | Improving | 429 | 593 | 614 | 659 | 638 | 509 | 565 | 500 | 712 | 334 |
| Operating Margin | Improving | 15.8% | 19.4% | 16.6% | 20.8% | 21.1% | 17.3% | 16.5% | 17.6% | 25.8% | 12.0% |
| Other Income | Volatile | 218 | 226 | 28 | 51 | 58 | 136 | 7 | 54 | 35 | 80 |
| Interest | Volatile | 30 | 69 | 19 | 21 | 49 | 22 | 20 | 25 | 22 | 29 |
| Depreciation | Stable | 72 | 76 | 80 | 65 | 76 | 70 | 72 | 69 | 72 | 73 |
| Profit Before Tax | Improving | 545 | 674 | 543 | 624 | 571 | 553 | 480 | 460 | 653 | 312 |
| Tax | Volatile | 82 | 135 | 125 | 160 | 154 | 132 | 145 | 119 | 168 | 71 |
| Net Profit | Improving | 463 | 539 | 418 | 464 | 417 | 421 | 335 | 341 | 485 | 241 |
| Net Margin | Improving | 17.1% | 17.6% | 11.3% | 14.6% | 13.8% | 14.3% | 9.8% | 12.0% | 17.6% | 8.7% |
Key Takeaways
- Consolidated revenue stood at ₹6,122 Cr, a growth of 5% YoY, though seasonal factors led to a sequential decline.
- The Beverage Alcohol segment demonstrated resilience with segment EBITDA growing to ₹429 Cr vs ₹419 Cr YoY.
- The Sports segment (RCSPL) is now classified as a discontinued operation following the Board's decision to divest the entity for ₹1,690 Cr.
- Exceptional items for the quarter included ₹81 Cr primarily for employee severance and supply chain rationalization costs.
- Standalone Net Profit for the quarter ended June 30, 2026, rose substantially to ₹391 Cr compared to ₹258 Cr in the same period last year.
- The company continues to pursue legal remedies for legacy issues, including a ₹1,238 Cr loan write-off to UBHL recognized in the previous fiscal.
- Net segment revenue for Beverage Alcohol (excluding excise) rose to ₹2,708 Cr, reflecting a steady premiumization trend under Diageo's leadership.
- Balance sheet remains robust with segment assets reaching ₹15,133 Cr, maintaining an almost debt-free status.
Management Guidance
Management remains focused on the 'Society 2030' ESG goals and the 'Supply Agility Programme' intended to optimize the manufacturing footprint and improve operating efficiencies. The divestment of the Sports segment (RCSPL) is expected to be completed within 12 months, pending remaining regulatory approvals.
Sentiment Shift
Stable
The core beverage business continues to show margin stability despite the noise from discontinued operations and exceptional severance costs related to supply chain rationalization.
Outlook
The outlook remains optimistic regarding the 'Prestige & Above' segment growth, which continues to drive profitability. However, volatility in raw material costs (ENA) and state-level regulatory changes remain key watchpoints for FY2027.
From the Annual Report (Key Quotes)
“The Board of Directors... approved the sale of 100% of the share capital of RCSPL for a consideration of ₹1,690 crores.”
“The transaction will be completed after the receipt of all requisite approvals, including from the Competition Commission of India and the BCCI.”
“Pursuant to a Supply Agility Programme... the Company has recognised a charge of ₹26 crores under exceptional items.”
Official Quarterly Documents
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This summary is AI-generated from United Spirits Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.