United Spirits Q2 results: Ad spends surge 57% ahead of festive season

NSV up 2.8% at ₹3,258 crore and premium portfolio grows 6.3%, but heavier marketing and policy headwinds in Maharashtra and Karnataka dent EBITDA and profit

by e4m Staff
Published: Oct 28, 2026 7:41 PM | 2 min read

United Spirits Limited (USL) reported a 57% increase in advertising and promotion spending, totaling ₹378 crore, raising its re-investment rate to 11.6% of net sales value (NSV) ahead of the festive season.
For Q2 FY27, USL's net sales value rose 2.8% to ₹3,258 crore, while profit after tax decreased by 2.1% to ₹462 crore, resulting in a net margin of 14.2%.
The Prestige & Above (P&A) segment saw a 6.3% growth in NSV to ₹3,065 crore, driven by innovations and relaunches, while the Popular segment declined by 22.7% due to regulatory impacts.
For the first half of FY27, NSV increased by 4.2% to ₹5,961 crore, with a 16.8% rise in profit after tax to ₹853 crore, supported by significant other income.

United Spirits Limited (USL) reported a 57% surge in ad spends at ₹378 crore from ₹241 crore, taking the A&P re-investment rate to 11.6% of NSV from 7.6%. The company said this reflects "healthy investments behind the brands and new launches ahead of the festive season." For the first half, marketing spends were ₹690 crore against ₹479 crore, or 11.6% of NSV versus 8.4%.

It reported a 2.8% rise in net sales value (NSV) to ₹3,258 crore for the second quarter ended September 30, 2026. Profit after tax (PAT) slipped 2.1% to ₹462 crore, resulting in a net margin of 14.2%. Earnings per share stood at ₹6.35, compared to ₹6.49 a year ago.

Volumes fell 5.0% to 15.77 million cases, with price and mix offsetting the decline. Gross revenue was ₹7,001 crore compared with ₹7,192 crore, while excise duty dropped to ₹3,743 crore from ₹4,022 crore.

The gross profit grew 4.7% to ₹1,563 crore, and gross margin expanded 88 bps to 48.0% due to better mix and productivity, partly offset by the West Asia crisis. Staff cost fell to ₹153 crore from ₹175 crore, and other overheads eased to ₹389 crore from ₹405 crore. Even so, EBITDA declined 4.3% to ₹643 crore, with the margin contracting 146 bps to 19.7%.

Below the operating line, other income was ₹64 crore (against ₹76 crore), depreciation rose to ₹74 crore (from ₹65 crore), and finance cost was ₹24 crore. An exceptional gain of ₹11 crore from the sale of a manufacturing unit license under the Supply Agility Program lifted profit before tax to ₹620 crore from ₹632 crore a year ago. Tax was ₹158 crore.

The Prestige & Above (P&A) segment grew NSV 6.3% to ₹3,065 crore despite a high base, and now makes up 94.1% of NSV. Growth came from Smirnoff's local flavour innovation, the J&B Scotch relaunch and the luxury portfolio. McDowell's No.1 brandy has been reclassified from Popular to P&A, with earlier periods restated. Excluding brandy, P&A value growth was 6.5%.

The Popular segment fell 22.7% like for like to ₹181 crore, hit by the Maharashtra policy impact and excise slab changes in Karnataka.

Praveen Someshwar, CEO and Managing Director, said, "We delivered a resilient quarter despite a strong prior-year base and regulatory headwinds, while continuing to invest behind our brands for long-term growth." He added that the J&B relaunch, enabled by the India-UK FTA, will "help recruit and deepen Scotch penetration," and that the company has entered the ready-to-drink segment with Smirnoff Ice.

For H1FY27, NSV rose 4.2% to ₹5,961 crore, with P&A up 7.8% at ₹5,576 crore. EBITDA slipped 1.1% to ₹1,075 crore at an 18.0% margin. PAT grew 16.8% to ₹853 crore, aided by other income of ₹286 crore, which included ₹150 crore in dividend from Royal Challengers Sports Private Limited.