United Spirits Reports 27% Profit Surge Driven by Premium Liquor Demand
United Spirits Q4 Results: Profit jumps 27% on demand for premium liquor
The Economic TimesImage: The Economic Times
United Spirits, India's leading liquor distributor, reported a 27% increase in fourth-quarter profit, reaching ₹5.71 billion ($59.63 million), driven by strong demand for premium brands like Johnnie Walker. Revenue grew 4.4% to ₹68.38 billion amid rising costs and upcoming changes in taxation policies in Karnataka.
- 01United Spirits' profit rose by 27% to ₹5.71 billion ($59.63 million) for Q4.
- 02Revenue increased by 4.4% to ₹68.38 billion amid rising expenses.
- 03The premium segment's net sales grew by 5% year-on-year.
- 04Karnataka will implement strength-based excise taxation from April 2026, allowing price flexibility.
- 05The sale of the Royal Challengers Bengaluru franchise for $1.78 billion will refocus efforts on the beverage alcohol business.
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United Spirits, a major player in India's liquor market and distributor of brands like Johnnie Walker and Antiquity, reported a 27% increase in profit for the fourth quarter, amounting to ₹5.71 billion ($59.63 million) compared to ₹4.51 billion the previous year. This growth was primarily driven by heightened demand for premium liquor brands. Revenue also saw a 4.4% increase, reaching ₹68.38 billion, while expenses rose by 4.1% during the same period. The company's premium segment, which includes offerings such as Black & White whiskey and Tanqueray gin, experienced a 5% year-on-year growth in net sales value. In a strategic move, United Spirits sold its Indian Premier League franchise, Royal Challengers Bengaluru, for $1.78 billion, aiming to concentrate on its core beverage alcohol business. Additionally, Karnataka's upcoming shift to strength-based excise taxation from April 2026 is expected to enhance pricing flexibility and support the premiumisation trend in the state's alcohol market, a change welcomed by CEO Praveen Someshwar.
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The shift to strength-based taxation in Karnataka could lead to more competitive pricing and improved market dynamics for premium liquor brands, benefiting consumers and businesses alike.
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