1QFY27 in-line; Multiple positive catalysts possible ahead – Reiterate Buy

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1QFY27 in-line; Multiple positive catalysts possible ahead – Reiterate Buy

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United Spirits

1QFY27 in-line; Multiple positive catalysts

possible ahead – Reiterate Buy

Reiterate Rating: BUY | PO: 1,560 INR | Price: 1,418 INR

Steady business trends… 24 July 2026

1QFY27 results were operationally in-line – overall net revenue rose 6% YoY with the Equity

key Prestige+ segment growing 10%. Adjusted EBITDA dipped -5% YoY led by higher

A&P spends amidst rise in brand innovations/renovations and activations during IPL &

Key ChangesFIFA World Cup. Excluding Maharashtra (adverse policy change last year), growth was

strong – Prestige+ segment revenues/volumes grew 15%/6% YoY in rest of India. (Rs) Previous Current

Price Obj. 1,430 1,560

…and a lot more to look forward to 2027E Rev (m) 135,922 136,398

Beyond the results, we see several positive drivers/catalysts hereon – i) Karnataka policy 2028E Rev (m) 147,688 150,185

change is a positive for Prestige+ segment (10-15% drop in consumer prices) and should 2029E Rev (m) 161,930 163,794

boost premiumization. The state contributes 6-7% of the company’s Prestige+ revenues 2027E EPS 25.9 27.9

and should aid overall growth, esp. in 2HFY27 as Maharashtra impact also gets into the 2028E EPS 29.8 30.9

base. ii) Importantly, there has been a fair bit of action on the portfolio – we’d watch for 2029E EPS 33.3 34.1

consumer traction to the relaunch of United Spirits’ largest brand McDowells (currently

rolled out in Uttar Pradesh, Rajasthan and Haryana). Further, other brands like Smirnoff, Aditya Mathur >>

Signature, etc. continue to grow well. iii) UK-India FTA is now live (first consignment Research Analyst

BofAS India

shipped) – mgmt. believes this could be a key enabler for scotch category penetration; +91 22 6632 8958