United Spirits Limited (USL), a subsidiary of Diageo plc, has reported a robust 9.4% growth in consolidated net sales for the first quarter of fiscal year 2026. The company's performance aligns with Diageo's recent announcement of 7.1% net sales growth in India during the same period.

Q1 FY26 Financial Highlights

According to the quarterly update preview released by United Spirits, the company achieved the following results for Q1 FY26:

Brand Performance

Diageo, the parent company of United Spirits, reported strong growth across several key brands in the Indian market:

• Black & White
• Signature
• Royal Challenge

Additionally, the McDowell's brand experienced positive growth during the quarter.

Market Expansion

In a significant development, Diageo has successfully reopened its operations in Andhra Pradesh after a five-year absence from the state. This move is expected to contribute to the company's growth trajectory in the coming quarters.

Management Commentary

While the company noted that the quarter was lapping a high prior year base, which involved proactive actions to mitigate potential supply chain disruption due to Union Elections, United Spirits has managed to sustain its growth momentum. However, the management cautioned that the demand environment remains muted.

Looking Ahead

United Spirits Limited has scheduled its board meeting for Wednesday, August 13, 2025, to consider and approve the unaudited financial results for the quarter ended June 30, 2025. This meeting will provide more detailed insights into the company's performance and future outlook.

The company's ability to maintain growth despite challenging market conditions showcases its strong brand portfolio and effective market strategies. As Diageo continues to strengthen its presence in India, including the recent re-entry into Andhra Pradesh, investors and industry observers will be keenly watching United Spirits' performance in the coming quarters.

United Spirits Limited (USL), a subsidiary of Diageo Plc, has reported a robust start to the fiscal year, with consolidated net sales reaching INR 3,021.00 crores for the quarter ended June 30. This represents a 9.4% increase from INR 2,761.00 crores in the same period last year, despite a muted demand environment.

Segment-wise Performance

The company's performance across different segments showcased varied results:

On a standalone basis, USL's total revenue grew by 8.4% to INR 2,549.00 crores. The Prestige & Above (P&A) segment, which forms the bulk of the company's revenue, contributed INR 2,251.00 crores with a 9.0% growth. Notably, the Popular segment showed stronger growth of 13.6%, reaching INR 250.00 crores. However, the Other/NBR segment saw a decline of 27.3%, dropping to INR 48.00 crores.

Challenging Comparatives

It's worth noting that the company was comparing against a high base from the previous year. The Q1 performance last year had included proactive measures taken by USL to mitigate potential supply chain disruptions due to Union Elections. Despite this challenging comparative, the company has managed to sustain its growth momentum.

Management Commentary

While the demand environment remains muted, USL's management expressed satisfaction with the company's ability to maintain growth momentum. The company's focus on its premium portfolio and strategic initiatives appears to be yielding positive results, particularly evident in the strong performance of the Popular segment.

Upcoming Board Meeting

United Spirits has scheduled a board meeting for August 13 to approve the detailed unaudited results for the quarter ended June 30. This meeting will provide more comprehensive insights into the company's financial performance and strategic direction for the fiscal year.

About United Spirits Limited

United Spirits Limited, headquartered in Bengaluru, is one of India's leading beverage alcohol companies. With a diverse portfolio of premium brands including Johnnie Walker, Black Dog, Signature, and McDowell's No1, USL operates 36 manufacturing facilities across India. The company is committed to driving positive societal impact through initiatives focused on improving livelihoods, promoting sustainability, and nurturing the alcobev ecosystem.

As United Spirits continues to navigate the challenging market conditions, investors and industry observers will be keenly watching the detailed Q1 results for further insights into the company's performance and future outlook.