Higher input costs likely to hit near-term margins of United Spirits

United Spirits' revenue grew in the June quarter, driven by volume growth, but margins were hit by higher advertising and promotional costs. Brokerages see price correction as a potential opportunity.

The country’s largest listed alcoholic beverage maker, United Spirits, reported a mixed bag of results for the first quarter of the financial year 2026 (Q1FY26).

 

While the topline was boosted by a better than expected volume growth in the quarter, margins were weighed down by higher spends on advertising and promotions. Although there are near term headwinds especially on the growth front, some brokerages believe that price correction of 18.5 per cent since its highs in June has made valuations attractive.

 

Revenues in the quarter saw a growth of 8.4 per cent on the back of a 9.4 per cent