United Spirits profit rises despite a 20.91-point annual margin setback
Revenue fell 10.36% year on year, while lower interest and tax costs helped net profit rise even as profit before tax declined 44.71%.
Filed 22 Jul 2026, 19:38 IST · after market close · United Spirits Ltd (UNITDSPR)
Key takeaways
- Consolidated net profit rose 10.91% year on year to Rs 462.5 cr despite a 44.71% fall in profit before tax.
- Operating margin worsened 20.91 percentage points year on year as revenue fell 10.36% while expenses were almost unchanged.
- The stock gained 4.26% in the session after the initial 0.98% rise, above its 2.06% median post-results move.
Price around the results
Profit growth came despite a lower pre-tax base
United Spirits reported consolidated net profit growth of 10.91% year on year, even as revenue declined 10.36% and profit before tax fell 44.71%. Lower interest expense, down 38.78%, and a 46.75% reduction in tax more than offset the weaker pre-tax result. Other income contributed 22.88% of profit before tax, so the reported profit included a material non-operating component.
Annual margin pressure eased sequentially but remains severe
Year on year, expenses were broadly flat while revenue fell 10.36%, causing operating margin to worsen by 20.91 percentage points. Sequentially, expenses fell 15.23%, faster than the 11.33% revenue decline, which improved operating margin by 9.32 percentage points to -102.44%. The margin has remained volatile across the past six quarters, moving from -98.28% in Q4FY25 to -81.53%, -106.87%, -87.09%, -111.76% and now -102.44%, rather than establishing a sustained recovery.
Sequential profit fell as other income normalised
Compared with Q4FY26, profit before tax declined 54.62% as other income fell 75.25%, despite interest expense dropping 56.52% and the operating loss narrowing. The tax rate rose 6.51 percentage points sequentially to 25.71%, adding to the pressure on net profit, which fell 14.19%. Year on year, other income was broadly stable, so the larger issue was the revenue decline against near-flat expenses.
The market reaction was above the stock's usual range
The stock rose 0.98% in the initial reaction and 4.26% in the following session after the results were filed after market close. Its history shows six positive reactions and two negative ones across eight results, with a median absolute move of 2.06%, making the following-session gain larger than its usual move. Trading volume was 1.79 times the reference level in the initial reaction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,708 cr | ₹3,054 cr | -11.33% | -10.36% |
| Other income | ₹73 cr | ₹295 cr | -75.25% | +1.39% |
| Expenses | ₹5,482 cr | ₹6,467 cr | -15.23% | -0.04% |
| Operating profit | ₹-2,774 cr | ₹-3,413 cr | +18.72% | -12.63% |
| Operating margin (%) | -102.44% | -111.76% | — | — |
| Interest | ₹30 cr | ₹69 cr | -56.52% | -38.78% |
| Depreciation | ₹72 cr | ₹76 cr | -5.26% | -5.26% |
| Profit before tax | ₹319 cr | ₹703 cr | -54.62% | -44.71% |
| Tax | ₹82 cr | ₹135 cr | -39.26% | -46.75% |
| Net profit | ₹463 cr | ₹539 cr | -14.19% | +10.91% |
| EPS (₹) | ₹6.52 | ₹7.59 | -14.10% | +11.07% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.98% | +1.51% |
| Next session | +4.26% | — |
Volume on the results session was 1.79× its 20-day average.
What to watch
- Whether operating margin improves from -102.44% in the next quarter.
- Whether revenue recovers from Rs 2708 cr after the 10.36% year-on-year decline.
- Whether other income remains a 22.88% contributor to profit before tax.