United Spirits Q4 Results: Profit jumps 75% YoY

United Spirits Ltd, one of India's largest players in the alcoholic beverage sector and manufacturer of such brands as Johnnie Walker, Black Dog, and Smirnoff, reported good performance during the fourth quarter of fiscal year 2024-25. The company experienced marked improvement in profitability, supported by expansion in margins and steady growth in its premium segment. The board of directors has also declared a final dividend to the shareholders.

Key Financial Highlights

United Spirits had a net profit after tax (PAT) of ₹421 crore for the quarter ending March 31, 2025, which was a whopping 74.7% increase over ₹241 crore in the corresponding quarter of the previous year. This is a 75% increase year-on-year in consolidated PAT. Profit after tax increased 26% from ₹335 crore of Q3 FY25.

Reported net sales value (NSV) during Q4 FY25 was ₹3,031 crore, up by 8.9% year-on-year. Underlying NSV growth during the quarter was 10.2% or 10% growth to ₹3,068 crore. Revenue from operations was at ₹6,634 crore, 2% higher than ₹6,511 crore during the corresponding previous-year period. Yet, operational revenue dipped 14% below the ₹7,732 crore of Q3 FY25.

The EBITDA of the firm improved by 37.7% year-on-year to ₹460 crore. This robust EBITDA helped improve operating margins, which grew to 15.2% from 12% in the same period last year. This margin growth represents improved operating leverage and product mix.

Full-Year Performance

Consolidated NSV for the entire year 2024-25 was ₹12,069 crore, 6.6% higher year-on-year. Underlying NSV in FY25 was ₹12,106 crore, a 7% increase. EBITDA for the whole year increased 12.1% to ₹2,243 crore. Net profit for the entire year increased 12.4% to ₹1,582 crore.

Segmental Growth and Contributing Factors

In a difficult demand scenario, the Prestige & Above (P&A) segment posted strong growth. The NSV growth for the P&A segment was 13.2% in Q4 FY25 and 9.9% in the entire fiscal year. The growth was led by the standalone business overall. This was offset partially by fewer Indian Premier League (IPL) matches played by Royal Challengers Bengaluru (RCB) in the quarter compared to the last year.

Dividend Recommendation

The directors have recommended a final dividend of ₹8 per equity share for the year 2024-25. The proposal is to increase the dividend, subject to shareholder approval at the ensuing annual general meeting.

Market Reaction

After the announcement of the robust performance, the shares of United Spirits are trading at ₹1,542.40, with a slight decline of 0.82%. 

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