United Spirits Limited Mixing it right for FY27 : Premiumization + ‘3 Indias’ playbook underpin DD growth

Research evidence excerpt

United Spirits Limited Mixing it right for FY27 : Premiumization + ‘3 Indias’ playbook underpin DD growth

J P M O R G A N Asia Pacific Equity Research

18 May 2026

United Spirits Limited Overweight

UNSP.NS, UNITDSPR IN

Mixing it right for FY27 : Premiumization + ‘3 Indias’ Price (15 May 26):Rs1,320.70

playbook underpin DD growth ▲Price Target (Sep-27):Rs1,510.00 Prior (Mar-27):Rs1,445.00

On the earnings call (First Take), UNSP sounded fairly optimistic on the FY27

outlook, guiding to double-digit P&A growth, led by premiumization (small-pack Consumer, Retail, Media

architecture across brands) and innovation (localized flavors, white spirits) initiatives. Latika Chopra, CFA AC

Further, the company’s “3 Indias” playbook, with tailored propositions for different (91-22) 6157-3584

income cohorts, is expected to drive higher penetration, more occasions, and faster latika.chopra@jpmorgan.com

uptrading, while the McDowell’s No.1 refresh (better formulation and packaging/ Himanshu Singh

format) targets a recovery in Lower Prestige. On the regulatory front, Maharashtra (91-22) 6157-3610

himanshu.x6.singh@jpmorgan.com

remains a near-term overhang into H1 (though management believes the MML

Saransh S Gokhale

impact has largely bottomed) while Karnataka policy changes are a meaningful

(91-22) 6157 3578

tailwind. Further, implementation of the India–UK FTA (timing uncertain) is saransh.gokhale@jpmchase.com

expected to drive HSD/MSD price reductions across BIO/BII. Near-term margins J.P. Morgan India Private Limited, J.P. Morgan

face a packaging-led COGS spike, partly offset over time by benign inflation for ENA, Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

efficiency initiatives and pricing (with a lag) despite sustained brand investments