United Spirits lifts margin despite flat sales as expenses fall
Operating margin improved 4.24 percentage points year on year, while other income made up 36.27% of pre-tax profit.
Filed 14 May 2026, 18:17 IST · after market close · United Spirits Ltd (UNITDSPR)
Key takeaways
- Consolidated operating margin expanded 4.24 percentage points year on year to 19.42% as expenses fell 4.28% while revenue grew 0.76%.
- Net profit rose 28.03% year on year, but other income contributed 36.27% of profit before tax and the tax rate fell 3.12 percentage points.
- The stock gained 3.79% after the results, a larger move than its 1.75% median absolute reaction across the past eight results.
Price around the results
Margin recovered as quarterly sales normalised
Consolidated revenue was nearly flat year on year, but expenses declined 4.28%, allowing operating profit to rise 28.91% and operating margin to widen 4.24 percentage points. Sequentially, revenue fell 17.33% after the Q3 peak, but expenses fell faster at 20.48%, lifting margin by 3.2 percentage points. Operating profit still declined 1.0% sequentially because of the lower revenue base.
Profit growth included a sizeable non-operating contribution
Other income rose 46.55% year on year and accounted for 36.27% of pre-tax profit, so the 28.03% increase in net profit was not driven solely by operations. Interest expense rose 213.64% year on year and 263.16% sequentially, partly offsetting the operating improvement. The tax rate fell 3.12 percentage points year on year and 3.55 percentage points sequentially, also supporting net profit.
Margin remains above the reported FMCG peer median
United Spirits' 19.42% operating margin was 2.67 percentage points above the 16.75% median among 26 Fast Moving Consumer Goods peers that had reported the quarter. The trend shows a recovery from 16.22% in Q3FY26, after margin had declined from 21.32% in Q1FY26 to 20.80% in Q2FY26 and then 16.22% in Q3FY26. This quarter therefore breaks the recent sequential slide rather than extending it.
Shares rose more than the stock's usual results-day move
The stock gained 3.79% on the first session after the results, with a 3.22 times volume ratio and a 3.98% gain relative to the market. That reaction was larger than the 1.75% median absolute move across the past eight results, when the stock rose after five and fell after three.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,054 cr | ₹3,694 cr | -17.33% | +0.76% |
| Other income | ₹255 cr | ₹41 cr | +526.54% | +46.55% |
| Expenses | ₹2,461 cr | ₹3,095 cr | -20.48% | -4.28% |
| Operating profit | ₹593 cr | ₹599 cr | -1.00% | +28.91% |
| Operating margin (%) | 19.42% | 16.22% | — | — |
| Interest | ₹69 cr | ₹19 cr | +263.16% | +213.64% |
| Depreciation | ₹76 cr | ₹80 cr | -5.00% | +8.57% |
| Profit before tax | ₹703 cr | ₹541 cr | +30.02% | +29.70% |
| Tax | ₹135 cr | ₹123 cr | +9.76% | +11.57% |
| Net profit | ₹539 cr | ₹418 cr | +29.04% | +28.03% |
| EPS (₹) | ₹7.59 | ₹5.88 | +29.08% | +27.99% |
Operating margin of 19.42% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.79% | +3.98% |
| Next session | +3.39% | — |
| 5 sessions | +0.75% | +0.63% |
| 15 sessions | -2.67% | — |
| 30 sessions | +6.12% | — |
Volume on the results session was 3.22× its 20-day average.
What to watch
- Whether operating margin holds above 19.42% after its 3.2-percentage-point sequential recovery.
- Whether other income remains below or above its 36.27% share of pre-tax profit.
- Whether interest expense moderates from its 213.64% year-on-year increase.