Maharashtra Rules Dragged Down United Spirits’ Premium Volumes in India

United Spirits, the Diageo-controlled spirits company in India, said weakness in Maharashtra masked broader growth across the country in the April-to-June quarter, as regulatory changes in that state pulled down national premium spirits volumes even while the rest of the market expanded.

The company disclosed that volume in its Prestige & Above division, which includes higher-end whisky, vodka, gin and other spirits, fell 1.3% across India in the quarter. Excluding Maharashtra, however, that same business posted 6.4% volume growth. The gap of 7.7 percentage points offers a clearer picture of how sharply one state affected the national result.

The figures were detailed in financial materials and in the transcript of the company’s earnings presentation published on July 30. United Spirits had already released its quarterly financial results on July 22, but the later transcript added management explanations and a more precise breakdown of the Maharashtra effect.

For net sales value in Prestige & Above, the pattern was similar. Reported growth was 10.1%, but excluding Maharashtra it reached 14.8%, a difference of 4.7 percentage points. The comparison suggests that the headline slowdown did not reflect demand conditions across most of India, but rather a concentrated disruption tied to policy changes in one of the country’s largest alcohol markets.

United Spirits operates as Diageo India and is the leading beverage alcohol company in the country. Based in Bengaluru, it makes and sells brands including McDowell’s No.1, Royal Challenge and Godawan, while also handling international labels from parent company Diageo.

In consolidated terms, revenue from operations rose to 6,122 crore rupees in the quarter, from 5,823 crore rupees a year earlier. That was an increase of 299 crore rupees, or about 5.1%. Standalone revenue from operations was 6,113 crore rupees, also up from 5,823 crore rupees in the same period last year.

Earnings before interest, taxes, depreciation and amortization rose 4.1% year over year to 432 crore rupees, with EBITDA margin at 16%. Profit after tax increased 51% to 391 crore rupees. Consolidated profit for the period reached 463 crore rupees, compared with 417 crore rupees a year earlier.

Management said stronger performance in premium brands helped offset pressure from Maharashtra. In its earnings summary, the company described the quarter as one of strong double-digit growth in its Prestige & Above portfolio before the impact of policy headwinds in that state.

Among brand milestones, Royal Challenge crossed 10 million cases on a trailing-12-month basis. Signature entered what the company called the 1,000 crore rupee club, bringing its number of trademarks above that threshold to four. Smirnoff generated 250 crore rupees in net sales value during the quarter, nearly matching its full-year performance for fiscal 2026, which the company attributed to local flavor innovation.

The Maharashtra issue has become central to how investors and analysts read United Spirits’ recent numbers because it changes the interpretation of national trends. A decline at the all-India level could suggest weakening premium demand or slower consumer trading-up. The state-by-state comparison instead points to a market where premiumization continued outside one major region affected by regulation.

That distinction matters for Diageo’s strategy in India, where premium spirits remain a key growth engine. The company said it continues to target double-digit growth for Prestige & Above over time, supported by volume growth of 5%-6% and price-mix gains of 6%-7%. It also said advertising and promotion spending would remain in the 10.5%-11% range for fiscal 2027.

United Spirits also pointed to expected support later in the fiscal year from Karnataka and from the implementation of the United Kingdom-India free trade agreement. The company said that agreement should improve access to Scotch and support further premiumization in India’s spirits market.

The quarter’s disclosures arrive at a time when global drinks groups are paying close attention to India as one of their most important long-term growth markets. For Diageo, India offers both scale and a large base of consumers moving into higher-priced categories. That makes regional policy shifts especially important because they can distort national data even when underlying demand remains firm elsewhere.

The company also said it expects the sale of RCSPL to be completed within 12 months of the original announcement, subject to regulatory approvals.

For now, the main message from United Spirits’ latest disclosures is that Maharashtra had an outsized effect on reported premium spirits performance in the first quarter. Without that state, both volumes and net sales value in Prestige & Above grew at a pace that was materially stronger than the national headline figures suggested.