United Spirits reported a 2.1% drop in standalone profit for the quarter ended Sept. 30, 2026, while sales in its premium portfolio rose and EBITDA declined as its advertising reinvestment rate increased.
Net sales value grew 2.8% year over year to Rs 3,258 crore. Prestige & Above sales rose 6.3% to Rs 3,065 crore, or 94.1% of net sales value. The company credited new Smirnoff flavors, a refreshed J&B Scotch range and growth in luxury products. It also said the segment faced a high-growth comparison from the year-earlier quarter.
Gross profit increased 4.7%, and gross margin expanded 88 basis points to 48%. The advertising and promotion reinvestment rate climbed to 11.6% of net sales value from 7.6% a year earlier. United Spirits said the higher rate supported brand activity and launches for the festive period. EBITDA fell 4.3% to Rs 643 crore, while its margin narrowed 146 basis points to 19.7%.
The Popular segment recorded net sales value of Rs 181 crore, down 22.7% on a like-for-like basis. United Spirits cited policy effects in Maharashtra and changes to Karnataka’s excise slabs as factors affecting realizations and growth.
A separate consolidated filing showed total profit of Rs 428 crore, down 7.8%, including a Rs 32 crore loss from discontinued operations. That figure is distinct from the company’s standalone profit after tax of Rs 462 crore.
NDTV Profit reported that Goldman Sachs maintained a Buy rating with a Rs 1,575 target. The outlet also reported Hold ratings from Jefferies and CLSA, with targets of Rs 1,560 and Rs 1,303, respectively; Choice Institutional Equities retained Reduce and raised its target to Rs 1,330 from Rs 1,230. NDTV Profit linked the differing calls to premium growth alongside concerns about advertising costs, regulation, competition and packaging expenses.
CEO and Managing Director Praveen Someshwar said United Spirits remained committed to long-term brand building while navigating regulatory pressure. The company said the India-UK free trade agreement enabled its J&B relaunch. It also highlighted its entry into ready-to-drink products with Smirnoff Ice. An investor call is scheduled for 6:30 a.m. ET (10:30 UTC) Thursday, Oct. 29.
