Profits for United Spirits decreased to 417 crore INR in the first quarter, but net sales increased due to the re-entry in AP and positive impact from the sports business sector.
United Spirits Ltd (USL) Reports Resilient Q1 FY26 Performance
United Spirits Ltd (USL), the leading spirits manufacturer in India, reported a consolidated profit after tax (PAT) of ₹417 crore during the first quarter of the financial year 2025-26 (FY26). Despite a year-on-year (YoY) increase in total expenses of 2.79%, the company's consolidated Net sales value (NSV) grew by 9.4% to ₹3,021 crore[1][4].
The growth in USL's consolidated NSV was driven by an 8.4% growth in the standalone business and a 15.7% reported growth of the sports business housed in RCSPL. Notably, the Prestige & Above (P&A) segment of USL expanded by 9.0% during the first quarter of FY26, while the Popular segment registered a 13.6% rise[5].
However, the company's reported EBITDA fell by 9.7% YoY to ₹644 crore. This decline was primarily due to a one-off indirect tax impact of approximately ₹40 crore and relatively higher advertising and promotion (A&P) expenses in its standalone business[4]. Excluding the one-off tax impact, the underlying EBITDA still declined about 4.1%, with the standalone business reporting flat underlying operating profit[4].
Praveen Someshwar, CEO & MD of USL, commented on the Q1FY26 performance, stating that the company delivered a resilient quarter with the Prestige & Above portfolio sustaining its growth momentum.
In a related development, the quarter also marked the completion of the Nao Spirits acquisition. Diageo India, headquartered in Bengaluru, has one of the largest manufacturing footprints in the alcobev industry with 36 facilities across India.
[1] - [4] - [5] - [Source: Business Standard] [2] - [3] - [Source: Mint]
- The resilient performance of United Spirits Ltd (USL) in the first quarter of the financial year 2025-26 (FY26) demonstrates the health of the Indian spirits industry.
- The growth in USL's consolidated Net sales value (NSV) shows the company's financial markets standing, as it increased by 9.4% despite higher expenses.
- The sports business housed in RCSPL contributed significantly to USL's growth, reporting a 15.7% increase in the first quarter of FY26.
- The decline in USL's reported EBITDA during Q1FY26 was due to a one-off indirect tax impact and relatively higher advertising and promotion expenses.
- Praveen Someshwar, CEO & MD of USL, sees the company's Q1FY26 performance as a resilient quarter, with the Prestige & Above portfolio sustaining its growth momentum.
- The acquisition of Nao Spirits by Diageo India, with its extensive manufacturing footprint, underscores the premium approach of USL towards expansion and growth in the spirits industry.
