United Spirits (USL) shares surged 5% to an intraday high of ₹1,339 on Friday, May 15, following a margin-led earnings beat for the fourth quarter of FY26. The breweries and distilleries firm posted a 27% jump in consolidated net profit at ₹5.71 billion for Q4 FY26, compared to ₹4.21 crore in the same quarter of the previous fiscal year. According to reports from The Economic Times, the company's revenue from operations also grew 4.4% year-on-year to ₹6,840 crore in the January-March period, up from ₹6,549 crore in the year-ago period. On a standalone basis, Q4 FY26 revenue from operations rose to ₹6,838 crores from ₹6,549 crores in Q4 FY25, while net profit climbed to ₹571 crores versus ₹451 crores in the corresponding quarter of the prior year. The strong performance was driven by continued demand for the company's premium liquor portfolio, including brands such as Johnnie Walker and Antiquity, despite pressure on overall volumes in some key markets.
The company reported strong operational performance with EBITDA increasing 18.8% annually to ₹6.0 billion as against ₹5.10 crore in Q4 FY25. As reported by The Economic Times, USL's operating profit margin expanded to 8.64% in the reporting quarter, contrasting with 7.71% on a yearly basis. The margin expansion was supported by favorable raw material pricing and productivity initiatives despite higher advertising spends. The company's total expenses increased 6.36% to ₹6,407 crore, while net sales value (NSV) stood at ₹3,054 crore, up 3.7% year-on-year. For the entire FY26, USL's net profit went up 16.18% to ₹1,838 crore while its consolidated income was up 4.38% to ₹28,294 crore during the financial year ended March 2026. On a standalone basis, Q4 FY26 EBITDA expanded to ₹6 billion from ₹5.05 billion in the same period last year, with EBITDA margin improving to 8.64% from 7.71%.
According to reports from The Economic Times, Praveen Someshwar, CEO & Managing Director of United Spirits, announced that the Board of Directors approved the sale of the company's 100% stake in Royal Challengers Sports Private Limited (RCSPL) for ₹16,663 crores on March 24, 2026. The transaction is subject to receipt of all requisite approvals, including from the CCI and the BCCI. The prestige and above (P&A) segment has grown 5%, though the quarter witnessed the full adverse impact of Maharashtra Made Liquor (MML) on both popular and lower-prestige segments in the state. Excluding Maharashtra and Andhra Pradesh, the overall portfolio and P&A segment delivered 8.5% growth during the quarter. The integration of Nao Spirits (Greater Than, Hapusa) is complete, contributing to the gin portfolio's 5% segment growth.
As reported by The Economic Times, the United Spirits board of directors has recommended a final dividend of ₹11 per equity share (face value ₹2 each) for FY26. The record date to determine shareholders' eligibility for the dividend has been fixed as July 8, 2026, with the final dividend to be paid on or after August 13, 2026 if approved at the Annual General Meeting. Someshwar expressed confidence about the company's future prospects, stating that the core portfolio at a national level, barring the impacted state, has delivered broad-based and healthy double-digit growth, setting up for a strong FY27. The massive cash influx from the RCB sale marks the end of an era and the beginning of a leaner, more profitable USL, allowing the company to focus exclusively on its core beverage alcohol business while providing capital for potential acquisitions or shareholder returns.
According to reports from The Economic Times, analysts at Goldman Sachs noted that United Spirits reported an EBITDA beat driven by strong margin expansion, though revenue for Q4FY26 came in below expectations. Goldman Sachs maintained a Buy rating with a target price of ₹1,480, citing the Q4 EBITDA beat despite revenue miss, while noting that focus remains on future margin pressures and revenue growth outlook. JPMorgan maintained an Overweight rating with a target price of ₹1,445, citing a margin-led Q4 earnings beat and constructive FY27 outlook, despite some revenue impact from export disruptions and state elections. The strong earnings beat is likely to trigger upward revisions in EPS estimates for FY27, with investors focusing on the utilization of proceeds from the RCB sale. At 12:40 PM, United Spirits shares were trading at ₹1,319.20 on the National Stock Exchange, gaining 3.67%.
