USL ends growth bender with a regulatory hangover, margin pressures loom

The buzz wears off in a sobering 2025-26 reset marked by excise shocks, soft volumes, and thinning margins

Shares of United Spirits (USL), the country’s largest listed liquor firm, have dropped 10 per cent over the past month, trailing sector peers. The slide follows a sharp excise duty hike in Maharashtra, a high base effect, and the absence of clear margin drivers — all of which have prompted brokerages to trim their 2025–26 (FY26) sales and earnings forecasts. This cautious turn comes after two years of strong operating and net profit growth. With multiple challenges in play, analysts expect the stock to remain under pressure in the near term.

 

Some of the warning signs may surface as early