United Spirits Bets Big On Brands As Maharashtra Excise, MML Competition Squeeze Margins
Q1 revenue hit Rs 12,448 crore and PAT rose 2% to Rs 3,152 crore, but EBITDA slipped 2% to Rs 4,448 crore and margin fell 104bps to 16.8% as A&P spend jumped 15% to Rs 1,295 crore. Maharashtra excise up 50%+ and retail prices up 60%+, plus new Maharashtra Made Liquor at Rs 148/180ml, threaten a key market.
United Spirits faces margin pressure from higher advertising spend and Maharashtra excise hikes plus new Maharashtra Made Liquor competition, but doubles down on brand-building and premiumisation to offset regulatory and input-cost headwinds in a key market.