MUMBAI– United Spirits Limited, the maker of Black Dog and Johnnie Walker whisky, reported a 2.1% decline in net profit to Rs 462 crore for the second quarter of fiscal 2027, as rising costs weighed on earnings despite modest revenue growth.
The company’s net profit for the July-September quarter fell from Rs 472 crore in the same period a year earlier, according to a regulatory filing.
Revenue from operations increased 2.8% to Rs 3,258 crore, compared with Rs 3,170 crore in the corresponding quarter of the previous fiscal year.
Operating profitability weakened during the quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 4.3% to Rs 643 crore from Rs 672 crore a year earlier. The company’s EBITDA margin narrowed to 19.7% from 21.2%, reflecting pressure on profitability.
United Spirits shares closed at Rs 1,227.40 on Wednesday, down 3.35%, compared with a 0.22% decline in the benchmark Nifty index.
The stock opened at Rs 1,270 and fluctuated between Rs 1,217.50 and Rs 1,281.20 during the trading session. Over the past 52 weeks, the shares have traded between Rs 1,210.80 and Rs 1,563.40.
United Spirits shares have declined 9.2% over the past year. The company has a market capitalization of Rs 96,766.76 crore and a price-to-earnings ratio of 59.97.
Despite the decline in quarterly earnings, United Spirits CEO and Managing Director Praveen Someshwar expressed confidence in the company’s growth prospects, citing investments in its brands and expansion into new product categories.
Someshwar said the company delivered a resilient performance despite a strong comparison with the previous year and regulatory challenges.
“The relaunch of J&B Scotch, enabled by the India-UK FTA, offers consumers a compelling proposition that will help recruit and deepen Scotch penetration,” he stated.
The company is also expanding its product portfolio with the introduction of Smirnoff Ice, marking its entry into the ready-to-drink alcoholic beverage segment.
“We also continue to unlock new avenues for growth, most recently, entering the Ready-to-Drink (RTD) segment with Smirnoff Ice to give consumers a convenient new choice. We look ahead to the festive quarter with confidence,” Someshwar noted.
The company’s latest results highlight the challenges facing liquor producers as rising expenses and regulatory pressures constrain profitability, even as demand supports revenue growth. (Source: IANS)
