Diageo India reports 51.6% profit increase in Q1
United Spirits, an Indian subsidiary of Diageo, has announced its unaudited first-quarter (Q1) results, propelled by double-digit growth in the Prestige & Above segment.
In the three months ending 30 June 2026, United Spirits reported a profit after tax of INR 391 crore (US$40.5 million), reflecting an increase of 51.6%.
Net sales for the company grew by 6% year on year to INR 2,703 crore (US$280m).
The Prestige & Above segment grew by 10.1%, with a saliency rate of 91.7%.
This growth was reportedly driven by local flavour innovations for Smirnoff and broad-based growth across the portfolio. However, it was partially offset by the ongoing effects of adverse policy in Maharashtra.
Praveen Someshwar, CEO and managing director of United Spirits, commented: “We have commenced fiscal 2027 on a strong note with double-digit growth in the Prestige & Above segment. Our consumer-centric interventions give us confidence to increase growth further as the year progresses.
“We continue to futureproof our portfolio while creating enduring value for all our stakeholders.”
Net sales value for the Popular segment decreased by 17.5% to INR 206 crore (US$21.3m). According to the company, the dip in the category was driven by Maharashtra Made Liquor, along with recent policy changes in Karnataka.
Gross profit increased by 11.2%, and the reported gross margin reached 46.1%.
The company said growth was driven by effective revenue management strategies, an improved product mix, and enhanced productivity. United Spirits also noted that the negative impact of the crisis in West Asia partially offset the results.
Additionally, Advertising and Promotion’s reinvestment rate accounted for 11.5% of the company’s net sales.
Earnings before interest, taxes, depreciation, and Amortisation (EBITDA) reached INR 432 crore (US$44.8m), representing a 4.1% year-on-year increase, affected by developments in West Asia.
EBITDA margin was 16.0%, a decrease of 30 basis points compared with the same quarter last year. According to United Spirits, it was primarily due to increased advertising and promotional investments.
Indian-made foreign liquor (IMFL) continues to dominate the world whisky market, according to the Brand Champions 2026 report.
United Spirits’ Director’s Special Black, Signature, Royal Challenge, and McDowell’s are among the top 10 best-selling Indian whisky brands. However, last year, McDowell’s lost its number one position to Pernod Ricard’s Royal Stag whisky.
Earlier this year, United Spirits agreed to sell its Premier League cricket business to a consortium for INR 166.6 billion (US$1.77bn).
Diageo, which is headquartered in London, is going through a period of restructuring under CEO Dave Lewis.
Recent developments include approximately 150 job cuts at Diageo’s Ireland operations and the closure of Aviation Gin’s visitor centre in Oregon.
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