United Spirits upbeat on price-mix support despite Maharashtra volume hit

United Spirits remains confident of sustaining a 6-8% price mix over the medium term, aided by portfolio premiumisation and Maharashtra's liquor policy, even as volumes face pressure at the lower end

United Spirits Limited (USL), a subsidiary of Diageo, is confident of sustaining a 6-8 per cent price mix over the medium term, aided by portfolio premiumisation and the evolving Maharashtra Made Liquor (MML) policy. This comes even as the new regime continues to weigh on volumes at the lower end of the market. 

 

During an analysts’ call for October-December (Q3FY26), USL further noted the current disruption in Maharashtra has, on the contrary, improved the national price mix. This is because the impact has been concentrated in popular and lower-prestige segments.

 

“We believe our historically-stated price mix range is sustainable at the higher end till the Maharashtra volume headwinds continue and at the lower end once that headwind falls off,” said Pradeep Jain, executive director (ED) and chief financial officer (CFO), Diageo. 

 

Praveen Someshwar, chief executive officer (CEO) and managing director (MD), said, “The top end of our portfolio is showing green shoots. And, the adverse volume impact in Maharashtra is largely at the lower end, which mathematically flips the national mix.”

 

For the quarter, United Spirits reported a price mix of about 10 per cent, on the back of growth in prestige and above (P&A) brands. This was along with volume pressure in Maharashtra following the rollout of competitively-priced MML products.

 

USL said consumption trends showed early signs of recovery, particularly at the premium end.

 

The company pointed to GST reductions, income-tax slab rationalisation in early 2025, and a normal monsoon as factors supporting discretionary spending.

 

However, Someshwar cautioned that uncertainty around the job market and geopolitical developments remains. “We remain cautiously optimistic for the wedding season and the next couple of quarters,” he said.

 

Maharashtra remains the single largest challenge for the Bengaluru-headquartered liquor manufacturer, with MML products gaining traction through aggressive pricing, sampling, and distribution.

 

The company said industry associations are engaging with policymakers to ensure a level-playing field in the near-medium term.

 

USL also highlighted that in the upper prestige segment, Signature delivered double-digit festival growth, strengthening category salience. Royal Challenge sharpened cultural relevance in mid-prestige by expanding to pocket-pack formats, continuing to outpace the category. 

 

McDowell’s scaled pocket packs in Maharashtra with a national rollout planned over the next two-three quarters.

 

On the luxury front, Godawan sustained strong traction through curated experiences while Johnnie Walker deepened its cultural footprint through campaigns and music partnerships.

 

Don Julio crossed ₹100 crore in net sales volume (NSV) in the first nine months, the company’s fastest innovation brand to do so.

 

On the expenses front, commodity costs (which are incurred while procuring raw materials, bottling and other operational efficiencies) remained largely stable, with Scotch being the only structurally inflationary input.

 

Expense on the back of Scotch is expected to ease with the proposed India-UK free trade agreement (FTA), the company said. 

 

In addition, USL is making selective advertising and promotion (A&P) investments across its portfolio. It is weighing the competitive intensity of its brands and focusing on strengthening long-term portfolios.