United Spirits Q4FY26 Revenue Preview: Goldman Sachs Maintains Buy, Target ₹1,480
United Spirits reported Q4FY26 consolidated NSV of INR 3,054 Cr., up 3.7% YoY, and full-year FY26 NSV of INR 12,467 Cr., up 7.7% YoY. Goldman Sachs maintained a Buy rating with a target price of ₹1,480, noting the Q4 growth missed estimates due to Maharashtra and Andhra Pradesh base effects and Popular segment weakness, partly offset by Prestige & Above segment resilience.
*this image is generated using AI for illustrative purposes only.
United Spirits Limited has released an unaudited quarterly revenue preview for Q4FY26 and the full fiscal year ended March 31, 2026, ahead of the Board of Directors meeting scheduled for May 14, 2026. The update was disclosed in advance of Diageo PLC's—the ultimate holding company—preliminary results announcement on May 6, 2026, which was expected to contain certain references to the company's performance. Audited consolidated and standalone financial results will be released following Board approval on May 14, 2026. Following the revenue preview, Goldman Sachs has maintained a Buy rating on United Spirits with a target price of ₹1,480, noting that the modest Q4 sales growth of 3.7% YoY missed estimates, with further clarity awaited from management commentary.
Consolidated Net Sales Value Performance
On a consolidated basis, United Spirits reported net sales value (NSV) of INR 3,054 Cr. for Q4FY26, compared to INR 2,946 Cr. in Q4FY25, reflecting a year-on-year growth of 3.7%. For the full fiscal year FY26, consolidated NSV grew 7.7% to INR 12,467 Cr. from INR 11,573 Cr. in FY25. It is important to note that consolidated numbers exclude Royal Challenge Sports Pvt Ltd (RCSPL), which is being reflected as "Discontinued operations" pursuant to the announcement dated March 24, 2026, subject to BCCI and other regulatory approvals. Prior year numbers have been restated accordingly.
| Metric: | FY26 | FY25 | Movement (%) |
|---|---|---|---|
| Q4 Consolidated NSV (INR Cr.): | 3,054 | 2,946 | 3.7 |
| Full-Year Consolidated NSV (INR Cr.): | 12,467 | 11,573 | 7.7 |
Goldman Sachs View
Goldman Sachs has maintained a Buy rating on United Spirits with a target price of ₹1,480. The brokerage noted that the modest Q4 sales growth of 3.7% YoY missed estimates, attributing the shortfall to base effects in Maharashtra (MH) and Andhra Pradesh (AP) as well as weakness in the Popular segment. These headwinds were partly offset by resilience in the Prestige & Above (P&A) segment. Goldman Sachs indicated that further clarity is awaited from management commentary.
Standalone Segment-Wise Performance: Q4FY26
On a standalone basis, the Prestige & Above (P&A) segment led performance in Q4FY26, while the Popular segment faced headwinds primarily driven by state-specific policy changes in Maharashtra and Andhra Pradesh. The Ex-MH & AP metric reflects core national business performance, excluding the two states where policy changes had materially divergent impacts. In Q4FY25, there was a one-off of INR 37 Cr. on account of imputed interest on receivables.
| Segment: | Q4FY26 (INR Cr.) | Q4FY25 (INR Cr.) | Overall Growth (%) | Ex-MH & AP Growth (%) |
|---|---|---|---|---|
| P&A: | 2,745 | 2,616 | 5.0 | 8.5 |
| Popular: | 271 | 312 | -13.2 | 2.5 |
| Total: | 3,046 | 2,946 | 3.4 | 8.5 |
Total NSV includes non-branded sales as well.
Standalone Segment-Wise Performance: Full Year FY26
For the full fiscal year FY26, the P&A segment continued to be the primary growth driver on a standalone basis, while the Popular segment remained broadly flat overall but showed meaningful recovery when excluding the impact of MH and AP. In FY25, there was a one-off of INR 37 Cr. on account of imputed interest on receivables.
| Segment: | FY26 (INR Cr.) | FY25 (INR Cr.) | Overall Growth (%) | Ex-MH & AP Growth (%) |
|---|---|---|---|---|
| P&A: | 11,152 | 10,271 | 8.6 | 11.3 |
| Popular: | 1,118 | 1,121 | -0.3 | 10.0 |
| Total: | 12,448 | 11,573 | 7.6 | 10.9 |
Total NSV includes non-branded sales as well.
About Diageo India
Diageo India is among India's leading beverage alcohol (alcobev) companies and operates as a subsidiary of Diageo Plc. Headquartered in Bengaluru, the company has one of the largest manufacturing footprints in the alcobev sector with 34 facilities across India. Its portfolio includes brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, The Singleton, Royal Challenge, McDowell's No1, Smirnoff, Ketel One, Tanqueray, Captain Morgan, and Godawan. The company is listed in India on both the National Stock Exchange and Bombay Stock Exchange as United Spirits Limited.
Historical Stock Returns for United Spirits
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.81% | -6.13% | +3.52% | -9.65% | -18.81% | +135.50% |
How might the resolution of state-specific policy issues in Maharashtra and Andhra Pradesh impact United Spirits' Popular segment growth trajectory in FY27?
What are the likely terms and timeline for the divestiture of Royal Challenge Sports Pvt Ltd, and how could the proceeds be redeployed to strengthen United Spirits' core alcobev business?
Could the sustained outperformance of the Prestige & Above segment signal a broader premiumization trend in India's alcobev market, and how well-positioned is United Spirits to capitalize on it versus competitors?
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