United Spirits Limited (Diageo India) delivered a robust FY26 performance, reporting 7.6% total Net Sales Value (NSV) growth. Driven by a successful premiumization strategy, the company achieved 8.6% growth in its Prestige & Above (P&A) segment. Financial highlights include an 11.6% increase in EBITDA and a strong Return on Capital Employed (ROCE) of 28.4%. The company continues to focus on long-term value creation through its ‘three pillars’ strategy, leveraging India’s growing consumer market.
Consistent Financial Performance
United Spirits Limited reported healthy results for the financial year ended March 31, 2026. The company achieved a 7.6% growth in total Net Sales Value (NSV). Profitability also saw significant improvement, with EBITDA growing by 11.6% and an EBITDA margin of 18.4%. Notably, the P&A segment, which is core to the company’s premiumization efforts, recorded an 8.6% NSV growth, with the ‘Mid-Prestige & Above’ segment performing even stronger at 15.5%.
Strategic Portfolio Re-shape
The company continues to execute its portfolio strategy anchored on the ‘Three Indias’ framework, tailoring consumer propositions based on income levels and aspirations. The portfolio transformation is reflected in the success of key brands like Johnnie Walker, Black & White, Black Dog, and Godawan. By focusing on luxury and premium segments, the company is effectively driving realization per case, which reached INR 1,918 in FY26.
Operational Productivity and Value Creation
Efficiency remains a cornerstone of the company’s operational success. Through its multi-year supply agility program, United Spirits has successfully offset approximately 93% of inflation through productivity gains. The company generated INR 1,374 crore in Free Cash Flow, supporting shareholder returns, including a dividend of INR 17.0 per share. These efforts have culminated in a strong ROCE of 28.4% for the fiscal year.
Looking Ahead: Capturing the India Opportunity
United Spirits remains optimistic about India’s long-term growth trajectory, driven by favorable demographics, a rising median age, and expanding digital adoption. With over 100 million new Legal Drinking Age (LDA) consumers expected over the next five years, the company is well-positioned to capitalize on these tailwinds. The focus moving forward will remain on driving category expansion, strengthening scotch penetration, and maintaining commercial excellence to deliver sustained double-digit profitable growth.
Source: BSE
