United Spirits Limited Confident narrative on improving growth ahead

Research evidence excerpt

United Spirits Limited Confident narrative on improving growth ahead

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

24 July 2026

United Spirits Limited Overweight

UNSP.NS, UNITDSPR IN

Confident narrative on improving growth ahead Price (23 Jul 26):Rs1,418.00

▲Price Target (Sep-27):Rs1,555.00

Prior (Sep-27):Rs1,510.00

On the earnings call (First Take), management struck an upbeat tone, anchored on the

just-implemented UK FTA, a building Karnataka tailwind and stabilizing Consumer, Retail, Media

Maharashtra trends. Management reinforced confidence in double-digit P&A Latika Chopra, CFA AC

growth, with ex-Maharashtra momentum tracking well (+14.8% in Q1 backed by vol (91-22) 6157-3584

+6.4%) and H2 volume growth set to accelerate as the Maharashtra impact ebbs, latika.chopra@jpmorgan.com

Karnataka policy changes take hold, and FTA-led price cuts (~7-9% price cuts) Himanshu Singh

improve BIO Scotch accessibility. The refreshed McDowell’s rollout and continued (91-22) 6157-3610

himanshu.x6.singh@jpmorgan.com

innovation in white spirits (Smirnoff clocking disproportionate growth) add further

Saransh S Gokhale

optionality. Margin headwinds from crude-led inflation (glass, PET) and elevated

(91-22) 6157 3578

A&P (expected at 10.5-11% of revenue for FY27) are expected to persist near term, saransh.gokhale@jpmchase.com

but select pricing (wherever permitted), benign ENA prices, the potential benefit from J.P. Morgan India Private Limited, J.P. Morgan

UK FTA (on bulk scotch prices) and sustained cost-saving measures should drive flat Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

to modest EBITDA margin improvement, per UNSP. The RCSPL transaction is

progressing well and is likely to be concluded by Sep/Oct’26. We raise FY27/28E