India's United Spirits misses quarterly profit estimates on higher spends

United Spirits

13/08/2025 16:04

Aug 8 (Reuters) - United Spirits UNSP.NS reported quarterly profit below analysts' estimates on Wednesday, as higher marketing spends overshadowed affluent Indians' sustained demand for premium liquor.

The Indian arm of spirits maker Diageo DGE.L reported a profit of 2.58 billion rupees ($29.50 million) for the quarter ended June 30, a fall of 14% from a year ago.

Analysts, on average, had predicted 3.03 billion rupees, according to data compiled by LSEG.

However, net sales value in United Spirits' premium segment, which includes Johnnie Walker whiskey and Tanqueray gin, rose 9% year-on-year, driving an 8.4% rise in overall sales value.

For more earnings highlights, (click here).

KEY CONTEXT

Affluent Indians, unperturbed by higher living costs, are splurging on everything from high-priced liquor to watches and jewellery.

'Premiumization' has lifted the profits of companies ranging from spirits sellers such as Radico Khaitan RADC.NS to department store chain Shoppers Stop SHOP.NS.

Still, United Spirits' marketing spends grew 36%, while overall costs rose about 9%.

Its quarterly earnings before interest, taxes, depreciation, and amortisation (EBIDA) fell to 4.15 billion rupees from 4.58 billion rupees a year ago. Gross profit margin fell to 44% from 44.5% a year ago.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
United Spirits
UNSP.NS
51.36
35.03
-37.35
14.48
Buy
10
0.81
0.92
United Breweries
UBBW.NS
67.06
41.62
13.17
35.57
Hold
12
0.95
0.52
Radico Khaitan
RADC.NS
69.68
43.54
13.64
37.09
Buy
7
0.94
0.14
Tilaknagar Industries
TILK.NS
47.05
32.61
16.65
-5.24
Strong Buy
1
0.87
0.10

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL TO JUNE STOCK PERFORMANCE

 -- All data from LSEG

-- $1 = 87.4660 Indian rupees

United Spirits Stock Performance https://tmsnrt.rs/3Hv35H2

 (Reporting by Ananta Agarwal and Manvi Pant in Bengaluru; Editing by Sahal Muhammed)

 ((Ananta.agarwal@thomsonreuters.com;))