United Spirits Q4FY25: Cheers to a Solid Quarter and Clear Roadmap Ahead
United Spirits (UNSP) wrapped up Q4FY25 on a steady note. Backed by robust value and volume growth, strategic tailwinds, and regulatory support, the company is setting the stage for sustained earnings expansion—even as it faces a few near-term consumption challenges.
Growth Highlights
Here’s how the numbers shaped up this quarter:
- Net revenue: ₹2,918.4 crore, up 10.5% YoY — in line with expectations.
- Volumes: 16.7 million cases, up 7% YoY — also meeting estimates.
- EBITDA: ₹505 crore, up 39.5% YoY — beating estimates by 10.4%.
- This performance was helped by the reopening of the Andhra Pradesh market and regulatory tailwinds in states like AP, KA, and UP
These numbers are a testament to the brand’s resilience and continued consumer demand.
Management’s Outlook
The company is upbeat on growth, forecasting:
- 12.1% earnings growth in FY26E, and
- 18.8% growth in FY27E
This optimism is supported by the recent UK Free Trade Agreement (FTA) and product mix optimization that’s expected to bolster margins and profitability further.
Headwinds to Watch
While Q4 showed solid topline growth, management did caution about broad-based consumption weakness in the near term. Competitive intensity and potential shifts in discretionary spending could moderate some of the demand tailwinds over the next few quarters.
Key Numbers at a Glance
| Metric | Q4FY25 Highlights |
|---|---|
Net Revenue | ₹2,918.4 crore (+10.5% YoY) |
Volume | 16.7 million cases (+7% YoY) |
EBITDA | ₹505 crore (+39.5% YoY, 10.4% beat) |
FY26E Earnings | +12.1% growth expected |
FY27E Earnings | +18.8% growth expected |
P/E (FY27E EPS) | 60.9x |
Revised FV | ₹1,575 (earlier ₹1,480) |
The stock is currently trading at a P/E of 60.9x FY27E EPS, reflecting investor confidence in the company’s brand and operational strength. With the fair value revised to ₹1,575, the company’s focus on product innovation, channel expansion, and margin improvement keeps it in a solid “ADD” zone.
Final Word: Steady Progress, Big Potential
United Spirits’ Q4FY25 was marked by steady volume growth, resilient profitability, and encouraging policy tailwinds. While near-term consumption headwinds are on the radar, the company’s roadmap and execution capability remain strong—cheers to that!
Disclaimer & Full Report
This feature is based on a synopsis of a research report issued by Kotak Securities Limited. For the full story (and disclaimers), make sure to check out the original sources:
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