United Spirits Reports Q2 Net Profit Down 7.7% to ₹428 Crore

Diageo-controlled United Spirits Ltd reported a 7.75% decline in consolidated net profit to ₹428 crore for the September quarter of FY27. Revenue from operations also slipped 2.56% to ₹7,014 crore during the same period.

Diageo-controlled liquor maker United Spirits Ltd on Wednesday reported a decline of 7.75 per cent in its consolidated net profit to Rs 428 crore for the September quarter of FY27, on a year-on-year basis.

The company had posted a net profit of Rs 464 crore in the July-September quarter a year ago, according to a regulatory filing from United Spirits Ltd (USL).

Its revenue from operations was down 2.56 per cent to Rs 7,014 crore in the September quarter under review. It was Rs 7,199 crore in the corresponding period of the previous fiscal year.

USL’s total expenses stood at Rs 6,471 crore, marking a decrease of 2.22 per cent in the September quarter.

During the quarter, the Prestige & Above segment accounted for 94.1 per cent of the net sales value, which was up 3.1 percentage points over the same period last year, according to USL's earnings statement. The net sales value for the Prestige & Above segment increased by 6.3 per cent during the second quarter.

Conversely, the Popular segment accounted for 5.6 per cent of the net sales value during the second quarter, down 1.8 percentage points compared to the same period last year. The net sales value of the Popular segment declined by 22.7 per cent during the second quarter.

The total income of USL, which includes other income, was also down 2.7 per cent at Rs 7,079 crore in the second quarter of FY27.

However, in the first half (H1) of the fiscal year, the total consolidated income of USL was marginally up by 0.85 per cent to Rs 13,274 crore.

Following the earnings announcement, shares of United Spirits Ltd settled at Rs 1,229 on the BSE on Wednesday, down 2.85 per cent from the previous close.

"United Spirits' latest quarterly performance highlights a clear bifurcation in the consumer market, with strong growth in the premium Prestige & Above segment contrasting sharply with a significant contraction in the Popular segment. While overall revenue and net profit have seen a modest dip, the strategic focus on premiumisation continues to shape their sales mix. For businesses operating in mature consumer markets, managing portfolio shifts effectively remains critical to navigating fluctuating quarterly demands and maintaining long-term margins." — Dr. Shishir Gupta, Founder & CEO, StartupLanes