United Spirits trims Q4 ad spend by 43% QoQ; FY26 spend rises 16%

United Spirits pared its advertising and sales promotion expenditure sharply in the fourth quarter of FY26, even as the Diageo India-owned liquor major posted growth in revenue and profitability.

The company’s advertising and sales promotion expenses stood at Rs 300 crore in the quarter ended March 31, 2026, down 42.5% quarter-on-quarter from Rs 522 crore in the December quarter. On a year-on-year basis, ad spends were marginally lower by 4.1% compared to Rs 313 crore reported in the corresponding quarter last year.

For the full financial year FY26, however, advertising and sales promotion expenses increased 15.5% to Rs 1,295 crore, against Rs 1,121 crore in FY25.

United Spirits reported revenue from operations of Rs 6,855 crore in Q4 FY26, registering a 4.7% increase over Rs 6,549 crore in Q4 FY25. Sequentially, revenue declined 13.6% from Rs 7,939 crore in Q3 FY26.

Total income for the quarter came in at Rs 7,150 crore, compared to Rs 6,722 crore a year ago and Rs 7,984 crore in the preceding quarter.

Profit for the quarter stood at Rs 539 crore, up 28% year-on-year from Rs 421 crore in Q4 FY25 and 28.9% higher than Rs 418 crore reported in Q3 FY26.

Profit before tax from continuing operations rose to Rs 703 crore during the quarter, compared to Rs 590 crore in the year-ago period, marking a 19.1% rise. Sequentially, it increased 27.8% from Rs 550 crore.

For the full year ended March 31, 2026, United Spirits posted revenue from operations of Rs 27,816 crore, up 3.9% from Rs 26,780 crore in FY25.

Annual profit rose 16.2% to Rs 1,838 crore in FY26, compared to Rs 1,582 crore in the previous financial year.

The company’s total expenses for FY26 stood at Rs 25,977 crore, up 3.6% from Rs 25,083 crore a year earlier. Excise duty remained the largest cost component at Rs 15,349 crore for the year.

On a standalone basis, A&P re-investment rate was 10.4% of sales, the brand said. They continue to build and maintain mental availability for the trademarks. Strong mix led by growth at the top end of the portfolio further warranted sustained brand investments for them.

Praveen Someshwar, CEO & Managing Director, commenting on the FY26 performance, said:

"We have delivered a resilient fiscal 2026 amidst an adverse policy in a salient state. The core portfolio at a national level, barring the impacted state, has delivered a broad-based and healthy double-digit growth setting us up for a strong FY27. We welcome the progressive policy in the state of Karnataka, which has the potential to provide a fillip to the premiumisation journey in the state.

This, along with UK-FTA on the anvil, bodes well for our business and gives us confidence to deliver on our medium-term guidance of double-digit growth.

During the quarter, the Board of Directors have approved the sale of our 100% stake in Royal Challengers Sports Private Limited (RCSPL) on 24th March 2026. The transaction is subject to the receipt of all requisite approvals, including from the CCI and the BCCI. This transaction further enables us to sharpen our focus on the core beverage alcohol business.

The Board of Directors have recommended a final dividend of INR11.0 per share for the fiscal year 2025-26, subject to Shareholder's approval.

Looking ahead, we are excited on the consumer opportunity in India and confident to capture it through our innovation muscle and by tapping into the key white spaces through both category participation and creation in a value-accretive manner."