New Delhi: United Spirits, which operates as Diageo India, increased its marketing spend by 31.1% year-on-year to Rs 312 crore in the quarter ended June 30, 2026. The gross profit for the company rose 11.2% to Rs 1,246 crore from Rs 1,121 crore in the corresponding quarter last year.
The company had spent Rs 238 crore on marketing in the corresponding quarter of the previous financial year, according to its unaudited standalone results.
Marketing spends accounted for 11.5% of net sales during Q1 FY27, compared with 9.3% in Q1 FY26. The company said the higher advertising and promotion investments affected its operating margin during the quarter.
United Spirits reported EBITDA of Rs 432 crore, up 4.1% from Rs 415 crore in the same quarter last year. However, the EBITDA margin contracted by 30 basis points to 16% from 16.3%, mainly due to higher A&P investments.
Net sales rose 6% to Rs 2,703 crore from Rs 2,549 crore in Q1 FY26. Gross profit increased 11.2% to Rs 1,246 crore, while the gross profit margin expanded to 46.1% from 44%.
The company’s profit after tax increased 51.6% to Rs 391 crore, compared with Rs 258 crore in the year-ago quarter. Other income stood at Rs 222 crore, including dividend income of Rs 150 crore from Royal Challengers Sports Private Limited.
Its Prestige and Above segment recorded net sales of Rs 2,478 crore, up 10.1% from Rs 2,251 crore. The segment contributed 91.7% of the company’s net sales during the quarter.
The Popular segment’s net sales declined 17.5% to Rs 206 crore from Rs 250 crore. Overall sales volume fell 3.4% to 14.47 million cases.
Praveen Someshwar, CEO and Managing Director, United Spirits, said, “We have commenced fiscal 2027 on a strong note with double-digit growth in the Prestige & Above segment. Our consumer-centric interventions give us confidence to increase growth further as the year progresses. We continue to future-proof our portfolio while creating enduring value for all our stakeholders.”