United Spirits Ltd
Diageo India incorporated in India as United Spirits Ltd.(USL) is the country’s leading beverage alcohol company and a subsidiary of global leader Diageo PLC. The company manufactures, sells, and distributes a wide portfolio of premium brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell’s No.1, Smirnoff and Captain Morgan.
Key Business segments
USL has a comprehensive brand portfolio with more than 80 brands of Scotch whisky, IMFL whisky, brandy, rum, vodka, and gin. Out of these, 9 brands that sell more than a million cases each year, of which 1 brand sells over more than 25 million cases each annually. In FY 2024–25, United Spirits Limited’s business is primarily driven by the Prestige & Above (P&A) segment, contributing 87.4% of net sales, reflecting the company’s strong focus on premiumization with brands like Godawan, Don Julio, and McDowell’s Single Malt. The Popular segment, now significantly scaled down through franchising and strategic exits, accounts for the remaining share. Additionally, the company is expanding into non-alcohol and innovation-led offerings such as Signature Packaged Drinking Water and premium mixers, aligning with evolving consumer preferences.
Revenue Mix FY24-25
- Prestige and Above Brands Segment: 87.4%
- Popular Segment: 12.6%
Shareholding Pattern
Financial Summary
| Particulars | Dec-23 | Mar-24 | Mar-25 |
| Sales | 10,612 | 11,321 | 12,069 |
| Sales Growth % | 9.26% | 6.68% | 6.61% |
| Expenses | 9,195 | 9,321 | 9,833 |
| Operating Profit | 1,417 | 2,000 | 2,236 |
| OPM % | 13% | 18% | 19% |
| Net Profit | 1,126 | 1,408 | 1,582 |
| EPS in Rs | 15.63 | 19.36 | 21.75 |
Final Outlook
Q3FY25 performance review Revenue in Q3FY25 was INR 36.0bn (up 10.9% QoQ/31.0% YoY), in line with our estimates. EBITDA loss was INR 7.3bn (from INR 5.5bn in Q2FY25). EBITDA margin was -18.2% (down 279bps QoQ/94bps YoY). Net loss was INR 8.0bn. Consolidated adj. revenue in Q3FY25 was INR 42.6bn (up 10.1% QoQ/29.3% YoY).
Despite healthy topline growth across segments, profitability remains a key concern. Consolidated adjusted revenue rose 10.1% QoQ and 29.3% YoY, supported by consistent momentum in food delivery and rapid expansion in quick commerce. However, the widening adjusted EBITDA loss (INR 4.9bn) and deteriorating margins underscore rising operational pressures.
Food delivery continues to show encouraging trends with stable growth (GOV up 3.4% QoQ) and improved contribution margins (up 80 bps QoQ), leading to a positive adjusted EBITDA of INR 1.8bn. This signals operating leverage and cost efficiency gains.
In contrast, quick commerce is scaling fast (GOV up 15.5% QoQ), but at the cost of profitability. Adjusted EBITDA margins fell to -14.8%, driven by higher marketing spends, manpower costs, and declining contribution margins. While the topline trajectory remains robust, sustained losses pose risks to the segment’s path to break-even.
The company ended the quarter with a strong cash balance of INR 81.8bn, offering a cushion to support near-term investments. However, going forward, the focus must shift toward balancing growth with disciplined capital allocation and improving unit economics—especially in quick commerce.
