United Spirits’ margin rebounds QoQ, but remains below year-ago level
Revenue momentum improved sequentially, but costs outpaced sales year-on-year and other income contributed 12.14% of pre-tax profit.
Filed 28 Oct 2026, 17:46 IST · after market close · United Spirits Ltd (UNITDSPR)
Key takeaways
- Consolidated operating margin recovered 3.86 percentage points QoQ to 19.70% as revenue grew 20.53%, faster than expenses at 15.01%.
- Year-on-year margin fell 1.10 percentage points because expenses grew 4.30% against 2.87% revenue growth, while net profit declined 7.76%.
- United Spirits’ 19.70% operating margin was 7.23 percentage points above the 12.47% median of 19 FMCG peers that had reported.
Price around the results
Sequential recovery came from better operating leverage
These consolidated results show revenue rising 20.53% QoQ, while expenses increased 15.01%; that gap lifted operating profit 49.88% and expanded operating margin by 3.86 percentage points. The margin recovery to 19.70% followed 15.84% in Q1FY27, although reported net profit fell 7.46% QoQ even as profit before tax rose 94.03%. Tax increased 92.68% sequentially, while the tax rate was broadly unchanged, down 0.18 percentage points.
Year-on-year cost growth outpaced revenue
The year-on-year comparison is less favourable: revenue grew 2.87%, but expenses rose 4.30%, narrowing operating margin by 1.10 percentage points and reducing operating profit 2.58%. Interest expense also increased 14.29%, adding to the pressure below operating profit. Other income contributed 12.14% of pre-tax profit, so reported earnings included a material non-operating contribution; the 0.07-percentage-point lower tax rate did little to offset the operating decline.
Margin remains above peers but has been volatile
The 19.70% margin was below 20.80% a year earlier and 21.32% in Q1FY26, despite the sequential rebound from 15.84%. The quarterly path shows a sharp fall to 16.22% in Q3FY26, a recovery to 19.42% in Q4FY26, and another dip before this quarter’s recovery. United Spirits was 7.23 percentage points above the 12.47% median operating margin among 19 reported FMCG peers.
Results were filed after market close
The company filed these results after market close, so there is no reported market reaction yet. In the last eight result reactions, the stock rose six times and fell twice, with a median absolute move of 1.00%; that history indicates generally positive but usually modest post-result moves.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,264 cr | ₹2,708 cr | +20.53% | +2.87% |
| Other income | ₹75 cr | ₹-9 cr | — | +50.00% |
| Expenses | ₹2,621 cr | ₹2,279 cr | +15.01% | +4.30% |
| Operating profit | ₹643 cr | ₹429 cr | +49.88% | -2.58% |
| Operating margin (%) | 19.70% | 15.84% | — | — |
| Interest | ₹24 cr | ₹30 cr | -20.00% | +14.29% |
| Depreciation | ₹76 cr | ₹72 cr | +5.56% | +16.92% |
| Profit before tax | ₹618 cr | ₹319 cr | +94.03% | -0.96% |
| Tax | ₹158 cr | ₹82 cr | +92.68% | -1.25% |
| Net profit | ₹428 cr | ₹463 cr | -7.46% | -7.76% |
| EPS (₹) | ₹6.03 | ₹6.52 | -7.52% | -7.66% |
Operating margin of 19.70% compares with a Fast Moving Consumer Goods sector median of 12.47% across 19 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 19.70% after the sequential recovery.
- Whether expense growth remains below revenue growth after the year-on-year gap of 4.30% versus 2.87%.
- Whether other income stays below its 12.14% share of pre-tax profit.