United Spirits (UNITDSPR) Q2 25/26 earnings summary

Executive summary

• Achieved strong top and bottom-line growth in Q2 and H1 FY26, with double-digit growth in the Prestige & Above segment despite policy headwinds in key states.

• Revenue from operations for H1 FY26 reached ₹13,494 crores on a consolidated basis, up from ₹12,910 crores year-over-year.

• Premiumization and innovation in brands like Godawan, Smirnoff, and Royal Challenge drove performance, with new launches and strong consumer response.

• The company completed the acquisition of Nao Spirits, holding 97% equity as of September 30, 2025.

• Exceptional items included severance costs and financial assistance related to a stampede incident at a subsidiary event.

Financial highlights

• Overall portfolio net sales value (NSV) growth for H1 FY26 was 10.1%, with P&A segment at 10.9%.

• Gross profit for the quarter was INR 1,493 crore, gross margin at 47.1% (up 190 bps YoY); H1 gross profit at INR 2,614 crore, gross margin at 45.7%.

• Standalone revenue from operations for the quarter was ₹7,192 crores, up from ₹6,671 crores last year.

• Reported EBITDA for the quarter was INR 672 crore, up 32.5% YoY; H1 EBITDA at INR 1,087 crore, up 16.8%.

• PAT for the quarter grew 40.9% YoY to INR 472 crore, PAT margin at 14.9%.

Outlook and guidance

• Cautiously optimistic for H2, with challenges expected in Maharashtra and Andhra Pradesh but confident in delivering on full-year guidance.

• Plans to sustain mid to high teen EBITDA margins for the next couple of years, with further improvement possible after consistent performance.

• Management continues to focus on operational efficiency and growth initiatives, including integration of recent acquisitions.