United Spirits profit misses estimates as ad spending jumps, shares slide
United Spirits reported a 2.1% drop in net profit, below the poll estimate. EBITDA beat forecasts but margins narrowed. Jefferies kept Buy while CLSA stayed at Hold.
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what happened
Shares of United Spirits, a liquor maker controlled by Diageo, came into focus for investors after its results for the second quarter of fiscal 2027, according to TradingView. Net profit fell 2.1% year on year to 462 crore rupees, below the 471 crore CNBC-TV18 poll estimate. Revenue rose 2.8% to 3,258 crore rupees, but missed the expected 3,348 crore.
EBITDA declined 4.3% to 643 crore rupees, yet came in above the 637 crore consensus. The EBITDA margin contracted to 19.7% from 21.2%. The company sharply raised advertising and promotion spending by 56.8%, to 378 crore rupees, ahead of the festive season. Volumes in the Popular segment dropped 29.7% amid policy changes in Maharashtra and Karnataka, while Prestige and Above grew 6.3%.
Jefferies maintained its Buy rating with a target of 1,560 rupees, and CLSA kept its Hold rating with a target of 1,303 rupees. The stock closed Wednesday at 1,227.40 rupees, down 3.4% ahead of the announcement.
why it matters
The report shows two pressures at once: regulatory limits are hurting the Popular segment, and higher marketing costs are squeezing margins. Gross margin, however, improved to 48%, and first-half operating cash flow reached 1,100 crore rupees. Investors will watch whether the company can restore growth in its mass-market segment and halt the decline in profitability.
market impact
United Spirits shares: profit and revenue below forecasts, EBITDA above, so pressure is mixed
- United Spirits shares mixed — profit and revenue below estimates, but EBITDA beat consensus while margins narrowed
tags
instruments
sources
- United Spirits shares in focus: What brokerages say on target prices after Q2 results — TradingView, 29 October 2026 at 02:48 UTC
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