United Spirits Retains Growth Aspirations for FY26 Despite Market Concerns

United Spirits Retains Growth Aspirations for FY26

United Spirits shares soared, recovering from the day’s low with a 2% increase to Rs 1,325 on August 18. This uptick followed brokerages largely remaining optimistic despite a muted performance for the June quarter. The management has steadfastly retained its growth target for FY26.

Brokerage Insights and Target Price Adjustments

• Goldman Sachs has reaffirmed a ‘buy’ rating with a target price set at Rs 1,575 per share, highlighting that Q1 results outperformed topline expectations even amid muted volume growth due to the impact in Andhra Pradesh.
• JPMorgan supports an ‘overweight’ rating but has reduced its target price to Rs 1,600 per share, adjusting FY26-27 EBITDA forecasts downward by 5-6% due to revenue declines from tax hikes in Maharashtra.
• Macquarie has adopted an ‘underperform’ rating with a lower target of Rs 1,250 per share, pointing out potential growth challenges amidst elevated taxes.

Financial Overview and Market Expectations

For the quarter ending June 30, United Spirits reported a consolidated net profit of Rs 417 crore, down from Rs 485 crore year-on-year. Revenue increased by 9.4% to Rs 3,021 crore, driven by robust performance despite a 10% decline in EBITDA, which fell to Rs 644 crore, leading to a margin contraction to 21.3% from 25.8% in the previous year.

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