United Spirits reported a standalone net profit of ₹391 crore for the quarter ended June 30, 2026, marking a 51.6% increase from ₹258 crore in the same period last year. The strong profitability was driven by a double-digit growth in the Prestige & Above segment, which grew 10.1% year-on-year to reach a net sales value of ₹2,478 crore. The Board of Directors approved the unaudited financial results at a meeting held on July 22, 2026.

Financial Performance

The company's net sales for Q1FY27 stood at ₹2,703 crore, a 6.0% increase compared to ₹2,549 crore in Q1FY26. EBITDA improved by 4.1% to ₹432 crore, though the EBITDA margin contracted by 30 basis points to 16.0% due to higher advertising and promotional investments. The gross margin expanded by 212 basis points to 46.1%, supported by revenue growth management interventions and better product mix.

Segment Performance

The Prestige & Above segment accounted for 91.7% of total net sales during the quarter. In contrast, the Popular segment reported a net sales value of ₹206 crore, a decline of 17.5%, primarily due to adverse policy impacts in Maharashtra and recent excise slab changes in Karnataka. Total volume for the quarter stood at 14,474 thousand cases, a decrease of 3.4% year-on-year.

Exceptional Items and Other Income

The company recognised exceptional items of ₹81 crore during the quarter, primarily related to organisation restructuring and the supply agility program. Other income for the period stood at ₹222 crore, which included a dividend income of ₹150 crore from Royal Challengers Sports Private Limited.

Two leading brokerages have issued divergent ratings on united spirits , with CLSA maintaining a cautious Hold stance while Nomura retains a more optimistic Buy recommendation, reflecting differing assessments of the company's near-term earnings trajectory.

CLSA Maintains Hold at ₹1,285

CLSA has kept its Hold rating on United Spirits with a target price of ₹1,285. The brokerage noted that while the company delivered in-line sales growth and recorded expanding gross margins, higher advertising spend weighed on EBITDA performance during the period under review. The increased investment in brand-building activities thus offset the gains seen at the gross margin level, limiting overall earnings improvement.

Nomura Retains Buy at ₹1,500

Nomura has maintained its Buy rating on United Spirits with a target price of ₹1,500. The brokerage acknowledged that near-term volume and margin headwinds persist for the company. However, Nomura identified several factors expected to support a recovery in the second half of FY27, as outlined below:

• India-UK FTA benefits: Potential positive impact from the Free Trade Agreement between India and the United Kingdom
• Easing glass costs: Expected moderation in input costs related to glass packaging
• MML normalization: Normalization of the Minimum Maximum Limit (MML) as a supportive factor for margins

Brokerage Ratings at a Glance

The following table summarizes the current ratings and target prices assigned by the two brokerages:

The contrasting views from CLSA and Nomura highlight the ongoing debate around United Spirits' near-term earnings visibility. While both brokerages acknowledge operational pressures, Nomura's Buy call reflects a more constructive view on the company's medium-term recovery prospects driven by structural and cost-related tailwinds expected to materialize in 2HFY27.