The upgrade reflects improved confidence in the company's earnings trajectory, supported by better margin visibility and regulatory tailwinds. The brokerage also revised its EBITDA estimates higher by 3% for FY26 and 7% for FY27, driven by a stronger growth outlook in United Spirits' Prestige & Above portfolio. It highlighted several supportive regulatory moves, including the reopening of Andhra Pradesh, retail outlet expansion in Uttar Pradesh, excise reforms in Madhya Pradesh, and the privatization of liquor sales in Jharkhand.
United Spirits is one of the leading beverage alcohol companies in India. Its standalone net profit jumped 17.44% to Rs 451 crore in Q4 FY25 as against Rs 384 crore in Q4 FY24. Revenue from operations (excluding excise duty) stood at Rs 2,946 crore in Q4 FY25, up 10.50% YoY, driven by continued resilience of its portfolio in a challenging consumer environment as well as due to a favourable base as business commenced in the state of Andhra Pradesh in Sep-24 after a gap of 5 years. The Prestige & Above segment accounted for 87.7% of net underlying sales during the fourth quarter of fiscal 2025.
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