United Spirits (UNITDSPR) Q4 25/26 earnings summary

Executive summary

• Achieved sustained double-digit growth in 80% of the national portfolio, leveraging macroeconomic tailwinds and robust category momentum, with strong premiumization and innovation across all segments.

• Transformation and relaunch of McDowell’s No.1 aimed at regaining share in the lower Prestige segment, while strategic focus on differentiated consumer segments and tailored brand strategies captured evolving market opportunities.

• Maintained focus on productivity, supply chain optimization, and ESG initiatives, earning strong external recognition and supporting long-term value creation.

• Completed the acquisition of Nao Spirits & Beverages and approved the sale of Royal Challengers Sports Private Limited (RCSPL).

• Revenue from operations for the year ended March 31, 2026, was ₹27,816 crore (consolidated), up from ₹26,780 crore year-over-year.

Financial highlights

• EBITDA grew 11.6% year-over-year to ₹2,445 crore, outpacing NSV growth of 7.6%, with gross margin improving by 172 bps to 46.4% and EBITDA margin reaching 18.4%.

• Free cash flow generation was INR 1,375 crore; net cash from operating activities (consolidated) was ₹1,459 crore.

• Return on capital employed rose to 28.4%; pre-exceptional EPS was INR 26.4, and consolidated EPS from continuing operations was ₹24.07.

• Final dividend of INR 11 per share proposed, total INR 17 per share for the year (67% payout ratio).

• Premium and above segment NSV grew 8.6% (11.3% excluding AP & MH); popular segment growth was flat.

Outlook and guidance

• Confident in delivering strong double-digit growth for the P&A portfolio in FY 2027, with continued premiumization, innovation-led growth, and new category creation.

• Strategic focus on turbocharging McDowell’s, expanding Scotch penetration, and leveraging India-UK FTA.

• Short-term margin headwinds from packaging inflation expected, but productivity and pricing actions to mitigate impact.

• The sale of RCSPL is expected to be completed within the next 12 months, with proceeds of ₹16,663 crore anticipated.