United Spirits Q2 profit soars 36%; here's what investors should do next

ICICI Securities has maintained its Add rating on the stock with a revised target price of ₹1,550 per share (previously ₹1,450), while Nuvama has retained its Buy rating with a target price of ₹1710

Analysts continue to maintain a positive outlook on beverage alcohol player United Spirits after the company reported its financial results for the second quarter of 2025-26 (Q2FY26). The company posted a 36 per cent increase in consolidated net profit in the July–September quarter of FY26.

 

ICICI Securities has maintained its Add rating on the United Spirits stock with a revised target price of ₹1,550 per share, up from ₹1,450 earlier. Nuvama Institutional Equities has retained its Buy recommendation with a target price of ₹1710 per share.

United Spirits Q2FY26 results

Earlier on Thursday, October 30, United Spirits reported a 36.1 per cent rise in consolidated net profit to ₹464 crore for Q2FY26. Net revenue for the quarter increased 11.6 per cent to ₹3,173 crore. Profit before interest, depreciation, and tax (PBIDT) rose 33.6 per cent to ₹740 crore compared with the same period last year.

 

 

Commenting on the results, Praveen Someshwar, CEO & Managing Director, said: "We have delivered a strong quarter on topline and Ebitda growth and ended the first half in line with our expectations while navigating regulatory headwinds in Maharashtra. Looking ahead, the second half of the year is the all-important festive, holiday and wedding season."

 

He added: "We are excited about our commercial and marketing programs bringing our brand portfolio alive for consumers while driving category salience and growth."  ALSO READ | 3 reasons why Nomura raised its target price on Swiggy to ₹560; check here

ICICI Securities on United Spirits

Analysts at ICICI Securities noted that United Spirits surprised consensus with better-than-expected price elasticity, aided by a strong performance in the Popular segment. Margins were driven by pricing, input stability, and lower advertising spends, which the analysts described as “somewhat sustainable.”

 

The report said: "USL’s performance was ahead of our estimates, with revenue/volume growth of 11.5 per cent/7.7 per cent Y-o-Y, aided by the reopening of Andhra Pradesh and steady performance in the P&A segment, partially offset by a decline in Maharashtra. Reported P&A brands’ volume/revenue grew 8.0 per cent/12.4 per cent Y-o-Y, with realisation growth of 4.0 per cent Y-o-Y. Popular segment’s volume/value grew 6.1 per cent/9.0 per cent Y-o-Y, largely driven by the reopening of the AP market."

 

The analysts expect that in the near term, duty increases in Maharashtra could weigh on performance. Over the long term, however, they see healthy growth supported by structural premiumisation, successful relaunches of legacy brands, and prudent cost management.

 

ICICI Securities has marginally tweaked its estimates for FY26E/FY27E and introduced FY28 projections. The firm models revenue/Ebitda/PAT CAGR of 10 per cent/13 per cent/11 per cent over FY25–28E, driven by a focus on premiumisation. "We maintain Add with a revised DCF-based target price of ₹1,550 (previously ₹1,450), as we roll forward to Sep’27 estimates," the report said. Key risks include changes in taxation, raw material price volatility, and failure to revive legacy brands.  ALSO READ | Earnings steady, valuations cheap: NTPC remains Nuvama's top power play

Nuvama on United Spirits

Nuvama Institutional Equities also maintained its Buy rating on United Spirits following the Q2FY26 results. Analysts noted that the company reported a solid set of numbers, with overall revenue up 12 per cent Y-o-Y and Ebitda up 33 per cent Y-o-Y—ahead of both their and consensus estimates.

 

The report highlighted that strong performance was driven by Andhra Pradesh, coupled with innovation and renovation offerings and a favourable base. Overall volumes grew 7.7 per cent Y-o-Y. P&A sales/volumes increased 12.4 per cent/8 per cent Y-o-Y, while Popular sales/volumes rose 9.2 per cent/6.1 per cent Y-o-Y. Gross and Ebitda margins, both at multi-quarter highs, expanded 190 bps/337 bps Y-o-Y to 47.1 per cent/21.2 per cent. A&P expenses fell 6 per cent Y-o-Y but remained flat Q-o-Q at 7.6 per cent of sales.

 

The Nuvama analysts said they would revisit their estimates and target price following the earnings conference call.