Diageo India ramps up Q1 ad spend to Rs 312 crore as it bets on premiumisation

The ad spends in the quarter was Rs 12 crore higher than the previous quarter

by e4m Staff
Published: Jul 23, 2026 11:11 AM | 2 min read

Diageo India ramps up Q1 ad spend to Rs 312 crore as it bets on premiumisation

United Spirits, owned by Diageo India, reported weaker earnings in Q1 FY27, with a revenue decline of 10.6% to Rs 6,113 crore and a net profit drop of 31.5% to Rs 391 crore compared to the previous year.
Despite reduced overall spending, the company increased its advertising and promotional expenditure to Rs 312 crore, reflecting a commitment to brand investment.
United Spirits strengthened its position in the premium craft spirits market by acquiring a 10.08% stake in Nuvola Spirits Private Limited for Rs 2.69 crore, which focuses on premium alcoholic beverages.
Nuvola Spirits, established in August 2023, reported a revenue increase to Rs 3.5 crore in FY26, with products catering to the growing demand for premium and experimental spirits in India.

Despite reporting weaker earnings in the first quarter of FY27, Diageo India-owned United Spirits continued to invest behind its brands, raising advertising and promotional expenditure to Rs 312 crore, up Rs 12 crore from the previous quarter.

The increased marketing outlay came even as the company reduced its overall spending. Total expenses declined 9.4% sequentially to Rs 5,781 crore during the April-June period, reflecting tighter cost management across the business.

United Spirits also used the quarter to strengthen its presence in the premium craft spirits segment. The company invested Rs 2.69 crore in Nuvola Spirits Private Limited (NSPL) by subscribing to 17,350 compulsorily convertible preference shares (CCPS) and 10 equity shares, giving it a 10.08% stake on a fully diluted basis.

Established in August 2023 by Raghav Sachdeva and Aakriti Sachdeva, Nuvola Spirits owns the Mikiamo and Seoulmate brands and focuses on globally inspired premium alcoholic beverages. Its portfolio includes Korean-style Soju as well as Italian liqueurs such as Limoncello, Meloncello and Amara Rosso, catering to India's growing appetite for premium and experimental spirits.

Financially, the maker of Godawan, McDowell's No. 1 and Royal Challenge posted revenue from operations of Rs 6,113 crore in Q1 FY27, compared with Rs 6,838 crore in the January-March quarter, a 10.6% sequential decline.

Consolidated net profit fell to Rs 391 crore, down 31.5% from Rs 571 crore recorded in the corresponding quarter last year.

According to its audited FY25 financial statements, Nuvola Spirits reported revenue of Rs 0.38 crore and a negative net worth of Rs 0.15 crore. The startup said its unaudited FY26 revenue climbed to Rs 3.5 crore, with the entire revenue currently generated from the Indian market.