United Spirits Q2 Profit Slips 2.1% to Rs 462 Crore Despite Revenue Growth

United Spirits Limited, the maker of popular liquor brands such as Black Dog and Johnnie Walker, reported a 2.1 per cent year-on-year decline in net profit to Rs 462 crore for the second quarter of FY27, as rising costs and margin pressure weighed on earnings despite an increase in revenue.

The company’s net profit stood at Rs 472 crore in the corresponding quarter of the previous financial year. Revenue from operations, however, rose 2.8 per cent to Rs 3,258 crore in the July-September quarter, compared with Rs 3,170 crore a year earlier, according to its regulatory filing.

Operating performance remained under pressure, with earnings before interest, taxes, depreciation and amortisation (EBITDA) declining 4.3 per cent to Rs 643 crore from Rs 672 crore in the year-ago period.

The EBITDA margin also narrowed to 19.7 per cent from 21.2 per cent, indicating that the increase in revenue did not translate into improved operating profitability.

Investor reaction to the results was negative, with United Spirits shares closing at Rs 1,227.40, down 3.35 per cent for the day. The decline was significantly steeper than the 0.22 per cent fall in the benchmark Nifty index.

The stock opened at Rs 1,270 and traded between Rs 1,217.50 and Rs 1,281.20 during the session. Its 52-week high stands at Rs 1,563.40, while the low is Rs 1,210.80.

United Spirits shares have declined 9.2 per cent over the past year. The company has a market capitalisation of Rs 96,766.76 crore and trades at a price-to-earnings ratio of 59.97.

Despite the pressure on profitability, the company’s management expressed confidence in its business strategy and growth prospects.

Praveen Someshwar, CEO and Managing Director of United Spirits, said the company had delivered a resilient performance despite a strong base in the previous year and regulatory headwinds. He added that the company continued to invest in its brands to support long-term growth.

Highlighting its product strategy, Someshwar said the relaunch of J&B Scotch, facilitated by the India-UK Free Trade Agreement (FTA), would offer consumers a compelling proposition and help expand the Scotch whisky market in India.

The company has also entered the ready-to-drink (RTD) segment with Smirnoff Ice, seeking to broaden its portfolio and offer consumers a convenient alternative within the alcoholic beverages category.

Someshwar said United Spirits was looking ahead to the festive quarter with confidence, as it continued to explore new growth opportunities and strengthen its brand portfolio.

The coming quarters will be important in determining whether these initiatives, along with festive-season demand, can help the company improve operating margins and restore profit growth.