Synopsis: Despite Maharashtra’s liquor policy disruption costing approximately Rs.359 crore in net sales value, United Spirits Limited posted FY26 NSV of Rs.12,448 crore up 7.6 percent with EBITDA margins expanding to 18.4 percent and free cash flow of Rs.1,374 crore; the Prestige and Above segment grew 11.3 percent excluding the two policy-affected states, confirming that the premiumisation trajectory is intact below the headline number.
Shares of India’s largest beverage alcohol company came into focus after the company released its Q4 FY26 and full-year investor presentation, disclosing a year of solid financial progress clouded at the headline level by a policy-driven disruption in Maharashtra. The filing covered financial results, brand portfolio performance, and the strategic outlook for Diageo’s Indian subsidiary.
With a market capitalization of Rs. 93,960.06 crore, the shares of United Spirits Limited were last trading at Rs.1,288.1 per share, down 2.47 percent from its previous closing price of Rs. 1,320.70. It is trading at a P/E of 51.26.
Net sales value (NSV) for FY26 came in at Rs.12,448 crore, up 7.6 percent from Rs.11,573 crore in FY25. The reported figure absorbs a Rs.359 crore hit from Maharashtra, where a policy change disrupted distribution through the year. Excluding both Andhra Pradesh and Maharashtra, the underlying NSV growth rate was 10.9 percent. Gross profit grew 11.7 percent, outpacing NSV growth by 410 basis points, as the mix shift toward Prestige and Above brands lifted gross margins to 46.4 percent.
EBITDA grew 11.6 percent to an 18.4 percent margin. Free cash flow for the year stood at Rs.1,374 crore, with ROCE at 28.4 percent. Pre-exceptional EPS rose to Rs.26.4 from Rs.22.3 in FY25. The company recommended a total dividend of Rs.17 per share, including a proposed final dividend of Rs.11 per share subject to shareholder approval.
The Prestige and Above (P&A) segment posted NSV growth of 8.6 percent for FY26 on a reported basis and 11.3 percent excluding Maharashtra. Within P&A, Mid-Prestige and above grew 17.1 percent on a Rest-of-India basis, with Signature, Black & White, and Johnnie Walker the primary contributors.
Black & White is now the No. 1 Scotch brand in India. India ranks third globally for Johnnie Walker and has entered the top five globally for Smirnoff. Eight brands crossed the one-million-case mark in FY26, with McDowell’s No.1 exceeding 10 million cases and Royal Challenge above 5 million. Advertising and promotion spend reached Rs. 1,295 crore, a reinvestment rate of 10.4 percent of NSV up from 9.7 percent in each of the two preceding years. Realisation per case rose to Rs. 1,918 from Rs.1,605 in FY23, a four-year sequential increase that shows premiumisation is showing up in pricing, not just in volume segment share.
McDowell’s Transformation and India-UK FTA
The company launched a full overhaul of McDowell’s No.1 Whisky in Q4, covering a new liquid formulation, new packaging, and revised brand positioning. At 10 million-plus cases annually, McDowell’s is the company’s largest volume brand, and its trajectory in the Lower Prestige and Popular segments carries significant revenue consequences. The India-UK Free Trade Agreement, concluded during FY26, is flagged as a policy tailwind; the reduction in Scotch import duties it entails could expand the addressable market for the company’s premium international labels.
Business Overview
United Spirits Limited, incorporated in India is the domestic subsidiary of Diageo plc and India’s largest beverage alcohol company by volume. The company markets over 80 brands including Johnnie Walker, Black Dog, Black & White, Signature, McDowell’s No.1, Royal Challenge, Smirnoff, and VAT 69.
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