United Spirits Ltd. delivered robust fourth-quarter results for fiscal 2026, with consolidated net profit surging 27% year-on-year to ₹539 crore compared to ₹421 crore in the corresponding period last year, according to latest reports. The company's revenue grew 3.7% to ₹3,054 crore from ₹2,946 crore in Q4FY25, led by 5% growth in the Prestige & Above segment. Gross profit rose 9.9% year-on-year, while reported gross margin expanded 281 basis points to 47.3% on a standalone basis, demonstrating strong operational efficiency and pricing gains.
The quarter reflected the full adverse impact of Maharashtra Made Liquor (MML) policy changes on the state's popular and lower-prestige segments, as reported by Business Standard. However, excluding Maharashtra and Andhra Pradesh, the company's overall portfolio, including the Prestige & Above segment, posted 8.5% growth at the national level. The Popular segment declined 13.2%, primarily due to MML impact in Maharashtra, while the Prestige & Above segment accounted for 90.1% of net underlying sales with 5% year-on-year growth.
Operationally, United Spirits achieved significant margin improvement with EBITDA margin expanding to 19.4% from 17.3% in the year-ago period, as reported in the filing. The underlying gross profit margin widened 212 basis points, driven by pricing gains, sustained revenue growth management measures, cost-of-goods productivity initiatives, and a relatively stable commodity basket. This margin expansion of 110 basis points indicates enhanced operational efficiency and cost management during the quarter.
Karnataka, one of India's highest-tax alcohol markets, announced in March that it will scrap government price controls and shift to strength-based excise taxation from April 2026, allowing companies to set prices while cutting tax slabs. This policy reform is expected to benefit United Spirits significantly, as the company distributes premium brands like Johnnie Walker and Antiquity whiskeys that are likely to benefit from the new pricing flexibility and reduced tax burden.
CEO Praveen Someshwar expressed confidence in the company's prospects, stating that the core portfolio at a national level has delivered broad-based and healthy double-digit growth, setting up for strong FY27 performance. The company welcomed progressive policy measures by the Karnataka government and noted that the proposed India-UK free trade agreement would further support business, strengthening confidence in achieving its medium-term target of double-digit growth. Additionally, the board approved the sale of the company's entire stake in Royal Challengers Sports Private Limited on March 24, which is expected to help sharpen focus on core alcoholic beverages business.
The company announced a final dividend of ₹11 per equity share with face value of ₹2 each for the financial year ending March 31, 2026, according to the exchange filing. The record date to determine eligible shareholders for the payout has been set as July 8, 2026. Final dividend, if any, declared at the AGM will be paid on or after Thursday, August 13, 2026.
