United Spirits' Q4 profit surges 75% to ₹421 cr, net sales up 8.9% to ₹3,031 cr

United Spirits Ltd, a subsidiary of Diageo India, reported a net profit of ₹421 crore in the January-March quarter, marking a significant 74.7% year-on-year increase from ₹241 crore in the corresponding period last year. The company's net sales also saw substantial growth, surging by 8.9% to ₹3,031 crore, while EBITDA grew by 37.7% to ₹460 crore during the same period.

The beverage alcohol major's operating margins improved to 15.2% in Q4 FY25 from 12% a year ago.

The company's reported net sales value (NSV) stood at ₹3,031 crore, an 8.9% increase compared to the same period last year. Underlying growth was 10.2%, primarily driven by the growth in the standalone business, which was partially offset by a lower number of Men’s Indian Premier League (IPL) matches played by Royal Challengers Bengaluru (RCB) in the January-March quarter compared to the previous year.

United Spirits manufactures and markets a premium portfolio of alcoholic beverages, including iconic brands like Johnnie Walker, McDowell’s No.1, Royal Challenge, Black Dog, and Godawan.

In Q4 FY25, the company's standalone profit before tax was ₹451 crore, with a net profit margin of 15.3%. The NSV came in at ₹2,946 crore, up 10.5% year-on-year, and the underlying NSV, at ₹2,983 crore, registered a growth of 11.9%.

The company attributed this growth to the continued resilience of its portfolio amidst a "challenging consumer environment," as well as a favourable base effect due to the resumption of business in Andhra Pradesh in September 2024 after five years.

The company's Board of Directors has recommended a final dividend of Rs 8 per share for the fiscal year 2024-25, subject to shareholder approval.

Praveen Someshwar, CEO & Managing Director, said that despite the challenging demand environment, the company delivered 13.2% NSV growth for its Prestige & Above (P&A) segment in Q4 FY25 and 9.9% P&A growth for the full fiscal year 2025, along with a leveraged EBITDA growth that aligns with their medium-term guidance.

Looking ahead, Someshwar stated that the company remains focused on delivering sustained growth while creating long-term value for all its stakeholders.

United Spirits' net sales value (NSV) for the full financial year rose 6.6% year-on-year to ₹12,069 crore, while underlying NSV grew 6.9% to ₹12,106 crore. The company reported robust profitability for the full year, with EBITDA increasing by 12.1% to ₹2,243 crore and profit after tax climbing by 12.4% to ₹1,582 crore, driven by growth in the standalone business.

Shares of United Spirits closed 0.26% higher at ₹1,557.45 on the BSE on Friday.