United Spirits Posts 27% Profit Jump on Premium Liquor Demand

United Spirits, the Indian arm of Diageo that distributes Johnnie Walker and Antiquity whiskeys, reported a 27% jump in fourth-quarter profit on Friday as demand for premium brands continued to strengthen in one of the world’s largest alcohol markets.

The company said profit for the quarter ended March 31 rose to 5.71 billion rupees, or about $59.63 million, from 4.51 billion rupees a year earlier. Revenue increased 4.4% to 68.38 billion rupees, while expenses climbed 4.1% over the same period, suggesting that higher sales were largely matched by rising costs.

The results point to the continued shift in India’s spirits market toward higher-priced labels, a trend that has helped global drinks companies offset slower growth in mass-market products. United Spirits said net sales value in its premium segment rose 5% from a year earlier. That category includes brands such as Black & White whiskey and Tanqueray gin.

The company’s performance also comes as it narrows its focus on alcohol after selling its Indian Premier League cricket franchise, Royal Challengers Bengaluru, for $1.78 billion in March to a consortium. United Spirits said this week that the sale would allow it to concentrate more closely on its core beverage alcohol business.

A policy change in Karnataka, one of India’s highest-tax alcohol markets, could further shape pricing and demand in the months ahead. The state said in March that it would end government price controls and move to strength-based excise taxation from April 2026, giving companies more freedom to set prices while adjusting tax slabs.

Praveen Someshwar, the chief executive of United Spirits, said the company welcomed the policy shift and said it could support premiumization in the state. Karnataka is an important market for spirits makers because changes there can influence pricing strategies and consumer demand across southern India.

The broader industry backdrop remains mixed. In March, a trade body representing global brewers including Heineken, Anheuser-Busch InBev and Carlsberg warned Reuters that surging glass bottle prices and a doubling of paper carton rates could force price increases and disrupt supply as gas shortages tied to the Iran war persist.

For Diageo, which has been pushing premium brands across markets, India remains a key growth engine. United Spirits’ latest results suggest that consumers are still willing to trade up even as inflationary pressures and regulatory changes continue to affect the sector.